The government’s heavy spending on infrastructure and lower interest rates have failed to lift the performance of infrastructure funds. These funds lost 5.6 per cent in the year ended September 9, 2025, against a 1.8 per cent loss posted by flexi-cap funds.
“2024 was a challenging year for the infrastructure sector. Due to the general elections, political focus shifted towards welfare measures. Infrastructure activity remained flat. Full-year spending fell short of market expectations, which led to the low performance of infrastructure funds,” says Ravi Kumar TV, founder, Gaining Ground Investment.
Understanding infra funds
Infrastructure funds invest at least 80 per cent of

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