Mutual funds constantly come out with different schemes. Infrastructure funds are part of a mutual fund category called thematic funds. While sectoral funds invest in particular sectors like, say, information technology, power, metals, oil and gas, etc, thematic funds invests in themes like infrastructure, consumption-led categories like the retail industry and outsourcing companies.
India needs to invest large amounts in areas like Roads, Ports, Power, and Telecom etc. to sustain high economic growth.
Apart from government spending, it will also require private participation to make significant progress on developing infrastructure. New initiatives such as Public-Private participation, increase in FDI limits and adequate funding support from the government have provided a tremendous boost to the system and therefore companies engaged in this sector have delivered robust performance in the last couple of years. T
oday, there is a huge buzz about the Great Indian Gold Rush and its three themes -- infrastructure, consumption and outsourcing.
Of these three, infrastructure funds have caught the fancy of a lot of mutual funds; many new funds have been launched in this category in the last couple of years. Infrastructure, as a theme, covers several sectors like power utilities, power equipment and construction companies.
Unlike technology sector mutual funds (at best, technology sector funds could buy stocks from telecom and media besides the software stocks it traditionally invests in), infrastructure funds are not restricted to a few sectors. We have made an attempt to compare the thematic infrastructure schemes of a few AMCs.
India needs to invest large amounts in areas like Roads, Ports, Power, and Telecom etc. to sustain high economic growth.
Apart from government spending, it will also require private participation to make significant progress on developing infrastructure. New initiatives such as Public-Private participation, increase in FDI limits and adequate funding support from the government have provided a tremendous boost to the system and therefore companies engaged in this sector have delivered robust performance in the last couple of years. T
oday, there is a huge buzz about the Great Indian Gold Rush and its three themes -- infrastructure, consumption and outsourcing.
Of these three, infrastructure funds have caught the fancy of a lot of mutual funds; many new funds have been launched in this category in the last couple of years. Infrastructure, as a theme, covers several sectors like power utilities, power equipment and construction companies.
Unlike technology sector mutual funds (at best, technology sector funds could buy stocks from telecom and media besides the software stocks it traditionally invests in), infrastructure funds are not restricted to a few sectors. We have made an attempt to compare the thematic infrastructure schemes of a few AMCs.