Bet on infrastructure funds to gain from government push: Experts

High cost of capital, change in policy key risks for these funds

The government’s sustained infrastructure push is boosting the performance of infrastructure funds. Over the past three years, the regular plans of these funds have delivered a category average trailing return of 21.3 per cent annually (compared with the Nifty 50 Total Return Index’s 16.3 per cent over the same period).

Infrastructure funds invest in companies that own, build, help build, or operate infrastructure assets. Energy, construction, construction materials, telecom, power, services, automobiles, healthcare services and capital goods are the key sub-segments within this theme.

Bright outlook

Fund managers feel the infrastructure sector is enjoying a strong tailwind. “Government policies and