The budget for 2023 did not have much for the mutual fund industry. This was quite evident despite the requests posed by the mutual fund industry. However, there is one key takeaway for those who watched the budget, and that is the push toward infrastructure.
Theme funds and segments funds like those of infrastructure-based funds have been given a push in the 2023 Budget by the Finance Minister. In case, as has been proposed, there is excessive spending on infrastructure, these mutual funds investment plans are likely to shoot up.
Let’s take a look at the details below!
These are sector-based mutual funds that invest their corpus in the stocks of various construction companies and other infrastructure based companies.
At present, there are 17 mutual fund schemes that are investing in the infrastructure sector. Those who lead this category, have offered around 13-19% returns in one year.
Post the pandemic private investments are likely to happen in the infrastructure sector. The Budget has pushed forwards toward investment and job creation. The finance minister then went on to talk about the different infrastructure schemes that are going to be started in the country.
The Finance Minister has proposed 50 additional airports, water aerodromes, heliports, and advanced landing grounds. The Government has pushed heavily on infrastructure as of 2023. There is a 3.3% spending on infrastructure leads to a 33% increase in spending. This is a positive move for the infrastructure sector and consequently thematic mutual funds investment plans.
As usual, the Government believes that leading the spending on infrastructure for the country will lead to growth and private investment in the sector as well.
Certain fund managers are of the opinion that private companies in the infrastructure space may witness a pickup in orders and inflows. Moreover, the Government is focused on Green Hydrogen and energy storage. Therefore, those infrastructure funds which have a higher piece of the pie in these sectors are likely to benefit from the above mutual funds investment plans.
However, there is an element of risk with the infrastructure-based mutual funds. This ought to be carefully considered when a person decides to invest in these mutual funds.
If you are keen to invest in mutual funds, you can get in touch with Money Assist and we will help you invest in sector-based mutual fund schemes. You can also invest in other mutual funds through our mutual fund distribution service. So, what are you waiting for today? Appreciate your capital and enjoy the benefits.
