The fund would invest at least 70% of its net assets under normal circumstances in equity / equity related instruments of companies mainly in infrastructure sector. The fund may also invest up to 30% of net assets in debt / money market instruments for providing ongoing liquidity and preservation of capital.
The growth of the infrastructure sector can be outlined as below:
Our country’s development and its move towards developed status now hinges significantly on growth of Infrastructure sector. Unlike in the past, the share of development of Infrastructure has not been limited to the public sector enterprises. With the opening up of economy and with the government commitment to offer a bigger role to private and foreign players, more and more investments are likely to be made in the infrastructure sector in the years to come by. Private and foreign investments are likely to see a big increase in capital expenditure in energy, petroleum, telecommunications, transportation sectors and other sectors which contribute to the infrastructure sector development. In the Indian context, removal of regulatory and availability constraints on a product or service, has catalyzed investments, attracted competition and rationalized costs leading to a new growth trajectory. The infrastructure sector in the country is poised for accelerated growth in the coming years as it is a necessity for Indian economy to achieve meaningful GDP growth. There is already momentum in investments in highways, power generation and ports, where a successful track record has fostered a virtuous cycle of more success.
India is rapidly moving on the path to establish itself as a global sourcing base for manufactured products and gearing up to carve a share of the textile opportunity post-quota removal in 2005. Steps taken by the government like the legislation of comprehensive reforms by way of the Electricity Act 2003 have paved way for attracting large investment in the Power sector. Large gas finds have already provided a trigger for the oil & gas sector. Telecom is another sector where significant progress has been made. India is already the fastest growing mobility market in the world. Focus on transportation sector in the recent years will prove beneficial to remove bottlenecks and to ensure smooth and faster economic growth.
Infrastructure sector broadly comprises of Energy, Power and Power Equipment, Oil & Gas and related industries, Petroleum and related industries, Coal, Mining, Aluminum and other Metal Industries, Steel and Steel Utilities, Engineering, Construction and Construction Related Industries, Cement, Transportation, Ports and shipping , Telecommunications, Housing, Banking and Financial Services,Healthcare and other industries in the related fields helping in Infrastructure development. India being one of the consumption led economy, would offer a substantial potential for investment in almost all the above sectors in coming years given the size of our population and need to grow. Obviously, the companies who are already leaders in these sectors are potential investments for providing high returns in future.
The Scheme may also invest in equities that are not Infrastructure stocks as defined above and debt or money market instruments, to manage its liquidity requirements, maintaining the overall asset allocation pattern. |
