Mutual funds In India ...

Infrastructure Funds - On the Top ...

All of you must be aware of the Infrastructure Funds in India.Out of the Top 5 mutual fund performers of last year (i.e 2006), 3 are the "Infrastructure Funds ".
Infrastructure Sector maily includes the companies which supply the most needed material and goods for the development of the economy.Hence these include the Capital Goods Companies.It may also include Construction and Engineering Companies.
There is no proper defination of "Infrastructure Sector".There are about 12 Infrastructure Funds in the market and each fund has a different meaning of "Infrastructure".For eg. ICICI Pru Infrastructure Fund Holds stocks of Financial Sector as well and if we take DSP ML INDIA T.I.G.E.R Fund it holds Pharma Stocks as well.
But yes "Infrastructure Funds" have been the flavour of the past many months.And this story is likely to comtinue.The top performing Infrastructure funds of 2006 are :-

Funds Returns (%)

1. Sundaram Capex Opportunities Fund(G) - 55.89
2.UTI Infrastructure Fund(G) - 61.50
3.ICICI Pru Infrastructure Fund (G) - 60.30
4.Tata Infrastructure Fund (G) - 61.50 .
Infrastructure Funds should form the part of ur Mutual Fund holdings.Infrastructure can become one of the core holdings of your portfolio but it should not be the only core holding.You should have atleast one stable large cap equity diversified fund like Reliance vision fund,HDFC Equity fund or Franklin India Blue chip Fund etc. Ivest in the Infrastructure Funds for long term (of over 4-5 years ) to reap the real gains and SIP(Systematic Investment Plan) is the best way to invest in th e current market scenario.
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