Are infrastructure funds coming back?
Mar 19, 10:03

They were cursed. After mopping up record inflows in 2007, infrastructure funds fell sharply when global markets underperformed in the 2008-Lehman crisis. They hardly ever recovered. Till after Budget 2021 when the finance minister announced increased capital expenditure and infrastructure spending. Infrastructure funds have given 18.34 percent returns so far this year. The stocks of infrastructure asset builders, operators, and suppliers to infrastructure companies are on the radar of savvy investors. Some experts predict a cyclical recovery. But remember, an infrastructure fund is thematic. Its destiny depends on a few sectors. Unless you're sure of recovery, it's safe to stick to diversified funds.

Turnaround of Infrastructure Funds R2