Funds in the infrastructure sector have been out of favour since the crash of 2008
15-Nov-2013 •Research Desk
Should I continue investing in DSP BlackRock T.I.G.E.R. fund? Is the fund expected to do any better?
The DSP BlackRock T.I.G.E.R. fund started as an infrastructure fund in 2004, to capitalize on the attention that the infrastructure sector was receiving that time. But these funds have been out of favour since the crash of 2008.
Its recent performance has been in line with rest of the infrastructure sector which has remained out of favour. The fund has been disappointing. It has a vague mandate to invest in a manner that gains from the structural changes in the economy and the ongoing economic reforms. There will always be structural changes because of the democracy, but economic reforms are a far-fetched idea.
Even among infrastructure funds it is an average fund. This fund has become a generic fund and looks like any other diversified equity fund, without any tilt or focus and going by its relative underperformance, we ask investors to keep away from it.