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Infrastructure Fund Investments

The infrastructure theme has lost some steam, but if you believe in it, stay invested via a good fund

I have been investing Rs 5,000/month in DSPBR T.I.G.E.R since 2007. Should I continue this SIP or exit?
- Ram Prasad

If you invested in an infrastructure fund it is probably because you believed in the theme. This theme has been out of favour, to some extent, when compared to the broad market rally. But if you still believe in the fortunes of this theme, and it could very well rebound, continue to stay invested in it.

Amongst the infrastructure funds, DSPBR T.I.G.E.R is not as impressive as some other options in this category which deliver superior returns. But that is exactly what the fund manager sets out to deliver. It is a good fund that offers lower risk, but will not deliver a show stopping performance. And over the long haul, will prove to be a pretty consistent player. Are you happy with such an investment style?

Finally, if you have been investing in an SIP since 2007, please ensure that your units are held on for at least a year so that you avoid long-term capital gains tax. So if your last investment was on February 2010, you will be able to sell those units only post February 2011.

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