Invest Into Infrastructure Focused Mutual Funds

In: Mutual Funds

8 Feb 2008

Infrastructure growth in an economy is often described as the growth engine of the economy. In the last 15 years Indian economy has witnessed a drastic change with services and manufacturing sectors driving growth vis-à-vis earlier periods when economic growth was dependent upon agricultural growth. As the Indian economy is opening to global economies the economy has started to grow at fast pace leading to prosperity in India.

Economic growth at inception drives aspiration amongst people as well as companies as witnessed in India at present. Since India at present is growing at fast pace, the economic growth is facing hindrance in the form of infrastructure, as the present infrastructure is not sufficient for the future growth. Infrastructure sector covers following areas where growth is needed in India:

Transportation: Roads, Railways, Airports, Ports etc..

  1. Transportation: Roads, Railways, Airports, Ports etc..

  2. Power: Corporate growth especially manufacturing sector is dependent upon power

  3. Communication: Telecom, IT, BPO etc

  4. Real Estate and Construction

  5. Water, sanitation etc

  6. For financing all these sectors development in Financial sector

According to 11th Five-year plan, Indian economy requires an investment of Rs. 14560 bn in the next five years.

Our Govt. is very serious in completing these infrastructure products with the help of public private partnerships. Hence the ongoing infrastructure development to drive growth in all the basic industries on a sustained basis for next 5-10 years. On back of stupendous growth in this sector these funds have already outperformed other diversified funds in the past year, expect this out performance to continue in future as well.

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