“Decoding Performance Dynamics Of Thematic Infrastructure Mutual Funds: Insights Into Sustainable Investing”
DOI:
https://doi.org/10.69980/jp6mqy28Keywords:
Thematic Mutual Funds, Sustainable Finance, Infrastructure Investment, Entrepreneurial Ecosystems, SME DevelopmentAbstract
This study investigates the performance dynamics of selected thematic infrastructure mutual funds in India, with a particular emphasis on their role in supporting sustainable economic development and entrepreneurial ecosystems. Using a quantitative research design based on secondary data from April 2024 to March 2025, the study evaluates ten open-ended thematic schemes through key financial and risk-adjusted performance indicators, including return, standard deviation, beta, Sharpe ratio, Treynor ratio, Jensen’s alpha and Fama decomposition. Beyond financial evaluation, the study situates infrastructure investments within the broader context of sustainability and inclusive growth. Infrastructure-focused mutual funds channel capital into critical sectors such as energy, transportation, and urban development, which are essential for enabling small and medium enterprises (SMEs), fostering innovation, and strengthening entrepreneurial capacity in emerging economies like India. The findings reveal that while all selected funds generated positive returns, top-performing funds such as Invesco India Infrastructure Fund, Franklin Fund (Build India), and DSP Fund ( Tiger India) demonstrate superior managerial efficiency and strong selectivity, contributing to sustainable capital allocation. The results highlight the trade-off between risk and return, while also indicating that a significant portion of performance is driven by fund-specific strategies rather than market movements alone. Importantly, the study underscores how thematic infrastructure investments can indirectly support sustainable entrepreneurship by enhancing economic infrastructure and promoting long-term development outcomes. The research contributes to the growing discourse on sustainable finance and its implications for entrepreneurial growth in Asia, offering insights for investors, policymakers, and scholars interested in the intersection of finance, sustainability, and development.
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