I invested in SBI Infrastructure Fund Series I in 2007 which is not performing well; what should I do with my investment?
-Shaba Fatima
If you had invested in the NFO of this fund in 2007, your investments must be in the red currently. For investors who are still hoping for their investments to turnaround in this high risk-high reward sector; it is time to lose patience and consider exiting these funds and diversify. The prospect for the infrastructure sector is bleak and there is little that indicates the sector to find favour. There are several reasons that have led to the to the infrastructure theme not playing out as expected. For instance, the sector is interest rate sensitive for both the builders as well as buyers, there is also the impact of rising input costs and inflation adding to its woes. You should consider exiting this fund and look to gain from opportunities in the broader diversified equity mutual fund space.
This article was originally published on January 25, 2012.
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