There are kinds of different schemes that commonly come with the mutual funds in constant ways. You may have found many writings about large, mid and small cap funds as well as kinds of sectoral funds. However, there are not many people that know about infrastructure funds and also the performance.
Infrastructure fund is one of the mutual fund parts category that is also called as thematic funds. If you know the sectoral funds are invested to the particular sectors such as information technology, metals, power, gas, oil, etc. the thematic funds are invested in the themes such as infrastructure and also the consumption led categories such as outsourcing companies and retail industry.
For instance, a company in India called Great Indian Gold Rush that has made a great buzz. The company has three themes including infrastructure, outsourcing and consumption. From the three themes, the infrastructure funds have gotten many mutual funds fanciness. Various new funds have been thrown in the category in the last two years. Before 2006, the company have launched five funds with sizeable money under the management, the funds are including;
– DSP ML TIGER Fund,
– Tata Infrastructure Fund,
– Prudential ICICI Infrastructure Fund,
– UTI Thematic Infrastructure Fund,
– Sundaram BNP Paribas Capex Opportunities Fund.
Those funds are the open-ended types. It means the investors can invest the funds anytime. More infrastructure funds are expected to be available yet most of the funds are close ended. The investors can sell the units they have anytime but the investors can’t sell the units in the minimum period in the close ended funds.
The infrastructure theme have some sectors to coverage such as power utilities, construction companies and power equipment. It is not like the mutual funds of technology sector, the infrastructure funds aren’t limited in some sectors.