India is rapidly ramping up its infrastructure spending. The govt capex has doubled in the last three years, naturally drawing investor attention.
India’s infra goes beyond just roads and bridges. It includes sectors like transportation, energy, communications etc.
There are 16 such funds, 2 of which are passively managed. Rest are actively managed, benchmarked against the Nifty Infrastructure TRI and BSE India Infrastructure TRI.
They don’t always stick to the core infra theme & often invest in allied sectors, which could be misleading. Most infra-related sectors are capital intensive and prone to defaults.
We found that these funds have mostly underperformed their broader S&P BSE 500 TRI index in the last 10 years.
Many infra-linked sectors are highly volatile given their cyclicity and are often debt-laden. We have expanded on this in detail in our story. Click on the link below