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HDFC Infrastructure Fund - Invest Online

HDFC Infrastructure Fund

 
Last couple of years were extremely challenging for our economy. There were many things to worry like high and sticky consumer inflation, twin deficit (Current account deficit & fiscal deficit), low GDP growth, policy paralysis, volatile currency, rising oil prices, high MSP growth (Minimum support prices) etc to name a few. Today, this all seems like a distant memory. Now, we have a strong and decisive government with development/infrastructure focus. Macroeconomics also seems to support with inflations under control & oil prices at unbelievably low levels. We feel the worst is behind us!

In the last 7-8 months, the Government has given a huge infrastructure thrust by taking several positive initiatives in Power, Railways & Roads. As per Economic Times Article dated 10th January, 2015 the power minister quotes "Rs 1 lakh-crore orders soon for power, mining equipment." The policy framework for infrastructure is slowly improving.

Secondly, Government's clear focus on "Make in India" initiative is evident from the efforts to amend land, labour & mining laws. India is likely to award projects worth USD 50bn over next five years, of which $19 bn is already cleared in last 6 months, with the clear emphasis on local sourcing. (Source: BAML, Edelweiss)

Globally also, India is in a unique position. Among large economies, it is among the handful if not the only country with downward outlook on interest rates, significant benefits of lower commodity prices and stable political situation. We believe India will continue to be a favourite destination for external investors over medium to long term.

Against this backdrop, we believe HDFC Infrastructure Fund is best positioned for "Economic Recovery" & "Make in India" initiative and is likely to benefit from India growth story. The Fund invests to seek long term capital appreciation by investing predominantly in equity and equity related securities of companies engaged in or expected to benefit from the growth and development of infrastructure.

Given the outlook for the Indian economy, we feel the fund provides a good risk reward proposition in the medium to long term, although short term volatility is quite high. Thus, we feel SIP can be considered to invest in HDFC Infrastructure Fund

 
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1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

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10.BNP Paribas Long Term Equity Fund

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