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Betting On Infra

Hold onto Tata Infrastructure fund if you're confident about the prospects of the infra sector…

I am investing regularly in Tata Infrastructure fund since 2005 and booking profits periodically. However, for the past two years the fund is not performing well when compared to the diversified equity funds. Suggest if I should continue with this infra fund or invest in other good funds?
- R.Jayakumar

Congratulations for booking profits from your investments in Tata Infrastructure. This is an infrastructure fund that predominantly invests in companies in the infrastructure sector. And you are right with your observation about the fund’s performance not being impressive over the past two years. Not only has the sector not done well, this fund has not fared well compared to its peer set. Will it perform well in the future? That is a question which rides on the fortunes of the infrastructure sectors which has the potential, but has not been yet in the turnaround phase.

You can hold on to this fund if you are confident about its performance in the future, however, a broad diversified equity fund in the large-cap category is better faring, which you could consider investing in.

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