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Better to Avoid Infra

Despite the turnaround in performance of the infrastructure sector, we suggest investors to stay away

What is your opinion about the Religare MIP and Taurus MIP Advantages? Please also tell me if this a good time to invest in infrastructure?
-Sunita

Both MIPs from Taurus and Religare are good. The Taurus MIP Advantage invests a small amount in gold as well, which has aided its performance so far. You can invest in any one them.

Coming to your other question, the infrastructure sector has seen heavy losses in the past 5 quarters. But recently, the sector has witnessed some momentum. There are a number of reasons behind this turnaround in performance. The infrastructure companies are receiving good news from all around; the drop in interest rates is expected to benefit these companies as well. However, we would suggest you to stay away from infrastructure mutual funds. We believe that investors are better off when they diversify their portfolios. Invest in diversified equity funds, which will anyway have exposure to infrastructure companies if they are doing well.



This article was originally published on February 24, 2012.

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