Aditya Birla Sun Life Infrastructure Fund

Aditya Birla Sun Life Infrastructure Fund has delivered strong SIP returns of 20.39% over 3Y and 19.61% over 5Y, comfortably ahead of its benchmark CAGR of 16.65% (3Y) and 16.58% (5Y) and above category average SIP XIRR of 16.16% (3Y), though slightly below the 5Y category average of 17.43%. Over longer horizons, the 10Y SIP XIRR of 17.82% and 12Y of 16.96% exceed category averages of 16.43% and 15.77%, aided by consistent alpha versus the NIFTY 50 (10.25% over 3Y, 11.38% over 5Y, 4.36-4.95% over 10-12Y). Recent performance has been comparatively modest, with calendar year returns of 8.99% in 2026 and 1.15% in 2025 following strong years like 43.39% in 2023 and 44.53% in 2021.

The fund carries moderately high volatility typical of sectoral/thematic funds, with 7 drawdown events exceeding 10% and one severe calendar year loss of -21.24% in 2018. Risk-adjusted behavior has been favorable, as reflected in downside capture ratios below 100% across all periods (81.75%-93.03%) alongside upside capture above 100% in recent periods, driving the persistent alpha versus NIFTY 50. The Calmar ratio has generally declined with longer horizons (from 0.3918 at 1Y to 0.2623 at 7Y), suggesting investors must tolerate meaningful drawdowns over extended periods.

The 55-holding portfolio is led by Larsen & Toubro (5.31%), Bharti Airtel (4.74%), and Reliance Industries (3.8%), with the top 10 holdings representing only about 32% of NAV, indicating reasonable stock-level diversification. Sector concentration is notable in Industrials-linked themes — Industrial Products (13.2%), Construction (11.2%), and Electrical Equipment (9.9%) — with cement (6.6%) and auto components (6.9%) also prominent. Holdings such as NTPC, GMR Airport, and UltraTech Cement reinforce the infrastructure orientation while telecom and healthcare additions like Bharti Airtel and Apollo Hospitals provide some diversification ballast.

Within the sectoral/thematic category, this fund ranks above peers on SIP XIRR at 1Y (18.01% vs 10.55%), 3Y (20.39% vs 16.16%), 10Y (17.82% vs 16.43%), and 12Y (16.96% vs 15.77%), though its 5Y XIRR of 19.61% trails the category average of 17.43% advantage — actually 19.61% exceeds 17.43% — and only the 7Y XIRR of 16.24% falls marginally short of the 16.59% category average. Long-term lump-sum performance has also outpaced NIFTY 50 across every window, with positive alpha maintained even over 15Y (4.59%). This consistency across horizons suggests sustainable stock selection rather than a single cycle's tailwind.

This fund suits investors with high risk tolerance and a time horizon of at least 7-10 years, given its cyclical sector exposures, 7 drawdown events above 10%, and recovery periods that have historically extended to multiple years. It is best used as a satellite or tactical allocation (typically 5-15% of an equity portfolio) rather than a core holding, since sectoral/thematic funds can underperform broad markets for long stretches. Investors should be prepared for sharp year-to-year swings, as seen in returns ranging from -21.24% in 2018 to 68.81% in 2014.

• Consistent outperformance versus NIFTY 50 with positive alpha across all periods from 1Y to 15Y (e.g., 10.25% over 3Y and 11.38% over 5Y)
• SIP XIRR above category averages at most horizons, including 18.01% vs 10.55% at 1Y and 20.39% vs 16.16% at 3Y
• Favorable capture profile with downside capture of 81.75%-93.21% in recent periods, cushioning losses during market declines

• High cyclicality with severe calendar year drawdowns, including -21.24% in 2018 and losses in 2013, 2015, and 2019
• Concentration in infrastructure-linked sectors (Construction, Industrial Products, Electrical Equipment combined over 34%), exposing investors to policy and capex cycle risks