Quick Take: Don't be lured by 50% returns

Jun 21, 2023

A reader wrote in saying that she wants to invest in an infrastructure fund, as Aditya Birla Sun Life Infrastructure is showing a 1-year return of 50%. Impressive, without a doubt.

We asked her to look at performance from various angles.

Start with the Year-To-Date (YTD) returns. It revealed HSBC Infrastructure as the best performer and Quant Infrastructure to be one of the worst.

However, the 3-year annualised return has Quant Infrastructure at the top.

While the 10-year annualised return has Franklin Build India topping the charts.

Further, we requested her to look at the calendar year (CY) returns to get an idea of outperformance over the benchmark and vis-à-vis peers.

Needless to say, she is now confused.

Never invest based on the latest chart topper. And, never forget that performance is just one factor in fund selection - there are a host of other parameters to consider. 

ABSL Infrastructure

Quant Infrastructure

Franklin Build India

HSBC Infrastructure

Check performance of categories here
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