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Positive Prospects for Infra Funds

But beware, as there are still a lot of uncertainty that may hit the sector

How will the future of infrastructure funds pan out?

Most people are upbeat on infrastructure funds, but at the same time one should be prepared for a momentary decline in the sector. Because they are a popular category and lots of fresh money has been raised, this sector will see some momentum and it will see some surges, but it is unlikely to be sustainable. The economic environment is not very conducive for sustained growth. And there are still a lot of worries about that. So invest in a diversified fund, those that have a good 5-year history and great risk-adjusted returns.

I had invested Rs 12,000 in ICICI Prudential for 12 months. It may have been in the Dynamic Fund. So what do I do now?

If you do not need the money for some time and can let it remain invested then do so. If the markets can maintain their upward movement for some more time, then you should manage to cover most of your position. There is always a chance that equity market may fall, but if you intend to remain risk-averse then mutual funds are not a good option for you.

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