infral&tsector

Is L&T Infrastructure Fund good?

Should I invest in L&T infrastructure fund? Is it a good fund?

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Ankit

L&T infrastructure fund is an Infrastructure Mutual Fund which generates capital appreciation by investing in equity and equity related instruments of companies in the infrastructure sector and has potential to benefit from the increased spending in the infrastructure growth.

The industries that would fall under infrastructure are: cement and cement products, construction and related services, electrical & electronic components and other sectors. Majority of the investments have been made in Industrial manufacturing and Construction sector.

India is expected to grow in all these sectors since:

·     India has not realised their full potential in this sector

·     There is considerable investment by government in this sector.

·     The government has also made structural changes in its policies which has led to improved rank in the ease of doing business ranking by the world bank.

·     The Indian economy is opening up and government is taking several initiatives to improve performance in the major infrastructure sectors.

All this has created positive growth outlook for the L&T infrastructure fund

The fund has invested heavily in large cap and mid cap stocks thus maintaining a good risk spread and at the same time ensuring good growth lookout for the fund. It has also invested a small proportion of its asset in small cap stocks. The risk for this fund is lower as compared to the benchmark and has also given consistently higher returns than its benchmark.

The companies in this sector need to comply to the sustainability norms imposed by the government and start working towards better practices if they want to sustain growth. Also there are always political & regulation risks associated with these investments. The industry and economic environment is also subject to variation.

Vaneet

L&T infrastructure fund is a mutual fund which aims to generate capital appreciation by investing in equity and equity related instruments of companies in the infrastructure sector. The fund invests in the infrastructure companies which have the potential to benefit from the increased spending in the infrastructure growth.

The industries that would fall under infrastructure are: Cement and cement products, Capital Goods, Banking & Financial services, Construction and related services, Electrical & electronic components, energy, engineering, transportation, metals/mining/mineral, oil & gas and allied industries, ports, power & power equipment, telecom, petroleum and related industries.

India is expected to grow in all these sectors as they have not realised their full potential, and there is considerable investment by government in this sector. The government has also made structural changes in its policies which has led to improved rank in the ease of doing business ranking by the world bank. The Indian economy opening up and government taking several initiatives to improve performance in the major infrastructure sectors, has created positive growth outlook for the L&T infrastructure fund.

The fund maintains a diversified portfolio by investing in small cap, mid cap and large cap equity, thus maintaining a good risk spread and at the same time ensuring good growth lookout for the fund. The risk for this fund is lower and the returns are higher, as compared to the benchmark index.

With the world collectively moving in the direction of sustainability, and environment friendly practices, government is likely to tighten norms with regard to operational practices followed in this sector, which can affect the performance of the fund. So the companies in this sector need to comply to these norms and start working towards better practices if they want to sustain growth. Also there are always political & regulation risks associated with these investments. The industry and economic environment is also subject to variation.

https://groww.in/blog/infrastructure-funds-time-to-invest/

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