IDFC Mutual Fund launched Infrastructure Equity Fund on Thursday, an open-ended equity fund. IDFC Mutual Fund declared that Infrastructure Equity Fund will allocate 80% to 100% of money to equity and equity related securities of infrastructure sector companies and 0% to 20% in debt and money market instruments.

The fund classifies infrastructure on the basis of Reserve Bank of India (RBI) and World Bank's benchmark definitions. They proposed that broad indicative portfolio allocations will go to transportation infrastructure (including road, rail, ports, and airports); power (generation, transmission, distribution); infrastructure construction, real estate, oil and gas, metals & mining and water management.

The fund will not be allocated to banking, auto and ancillaries, consumer durables, IT, pharma and FMCG sector companies.

Andrade said that in last four years financial companies have performed at their best and similarly in the coming year's infrastructure sector will also perform to its potential.

He also said that looking at the secular increase of infrastructure spends planning commission estimated that infrastructure spends will touch 9% of the GDP from current 7.9 per cent.

The launch of Infrastructure funds aimed to generate long-term capital growth.

The subscription will open on February 14 and closes on February 28. IDFC Infrastructure Fund is an open-ended scheme.