How to invest in an infrastructure fund or bond in India – online?
One of the segments where investors generally hesitate investing is infrastructure fund. This is because of less knowledge and sometimes wrong guidance.
Get a Free Mutual Fund Account.!
>> Click here to know more
It is found, investors can easily get detailed information regarding various funds including large cap funds, mid cap funds, small cap funds and various sectoral funds, while it is quite difficult to collect requisite information regarding infrastructure funds. However, now the time has come to explore infrastructure fund, which is one of the significant segment of mutual funds.
Initially, infrastructure funds were only private placement funds owned by gigantic investors in the form of major pension plans. But, then the growth of different types of exchange-traded funds (ETFs) gave rise to some infrastructure-focused investments in the market for individual investors. In infrastructure funds, investments are basically made in the segments like construction of transportation, energy and communications projects.
It is believed that a infrastructure fund is a type of mutual fund known as thematic fund. Where sectoral funds facilitate investment in specific sectors including information technology, power, gas, oil and metals etc, the thematic funds helps investors to invest in some themes like infrastructure, retail industry and outsourcing firms.
The Great Indian Gold Rush has recently made noise regarding this relatively newer fund. It has introduced three kinds of schemes namely infrastructure, consumption and outsourcing.
Out of these three schemes, infrastructure fund was the one which grabbed more eyeballs.
Acknowledging this latest trend, numerous novel firms are now planning to launch new services in infrastructure funding in recent time. But there are only five which have sizeable money under management. They include:
1. Prudential ICICI Infrastructure Fund
2. DSP ML TIGER Fund
3. UTI Thematic Infrastructure Fund
4. Tata Infrastructure Fund
5. Sundaram BNP Paribas Capex Opportunities Fund
It is worth noticing, all the above listed funds have been launched before 2006.
An important factor that attracts more investors to infrastructure fund is that investors can invest in them whenever they like and wherever they like.
There are basically two types of infrastructure funds; one is open ended and the other one is closed ended. Open ended means, investors are free to choose time of investment, while in closed ended investors are bound to sell their units for a specific period of time. That minimum period is decided by the fund itself.
So, when are you planning to invest in infrastructure funds?