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Avoid Infrastructure

All infrastructure funds, including Reliance Infrastructure, have done poorly. Stay away from them…

I had invested Rs 1 lakh in the Reliance Infrastructure NFO. I have lost 30 per cent of my capital. The Sensex has crossed the 19,000 mark, but this fund is hardly moving in its NAV. Is it time to move out of this fund?
-Saurabh Agarwal

Reliance Infrastructure is not the only infrastructure fund that has disappointed; none of the funds in this category have done well. Reliance Infrastructure has been more disappointing because investors had huge expectations from it. This fund has around 60 per cent of its assets invested in mid- and small-cap stocks, which have suffered the most in the past few years.
We don’t know when the infrastructure sector will turn around, and hence, it is better to stay away from infrastructure funds.

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