Do you want to be a part of India’s booming Infrastructure sector? You need to tap on the HDFC Infrastructure Fund. This scheme was launched on March 10, 2008. The scheme invests in the companies that are involved in the activities related to the infrastructure sector. Moreover, Infrastructure Funds are investments that deal with essential facilities of the community.
For example, the companies involved in activities of production, transportation, telecommunication, etc. The scheme aims to generate high returns by investing in such companies. Furthermore, the scheme gives growth to your as well as the country’s economy. This growing sector is supported by the government.
As a result, it makes the scheme trustworthy for investing and being lasts long. The increasing demand of the growing nation paves the path for comfortable living. The infrastructure fund works as a foundation for the developing nation. It upgrades the country to be well-functioning, productive, and comfortable. Also, leads to development that doesn’t affect the natural resources and gives a sustainable future. The scheme provides a regular investing opportunity that mitigates your fear of risks. Moreover, works as a cushion for you when your financial conditions are not favorable. Let’s deepen your knowledge about the scheme by focusing on the different aspects of it.
What are the Key Points of the HDFC Infrastructure Fund?
Expand your knowledge of the scheme by learning about its mentioned features:
Long-term Investment
The scheme is beneficial when you stay for a long time. The development process takes time to complete. The scheme takes your investments for at least a long period of 5-7 years or more to make it profitable for you. Hence, this long-term development procedure will make you stay in the market for a long time.
High-Earnings
The main agenda of the scheme is generating high earnings. The infrastructure projects and activities require frequent funding. This funding will help the scheme to perform well in the market. This upgradation in the scheme performance leads you to earn high.
Management Team
The HDFC Infrastructure Fund has a team of financial experts. Moreover, they keep records of the market demand and future projects precisely. In addition, they design strategies such that the investments achieve your desired goals.
Government Support
The infrastructure sector plays an important role in the nation’s economy. Hence, the government is supporting the sector in upgrading its development. For instance, the government initiative of Bharatmala for highway development. This initiatives are taken to save the costs and create jobs for the workers. This builds trust in you to invest in the scheme.
Diversify the Portfolio
The infrastructure sector has many activities. For example gas and electricity networks, production, transportation, etc. The scheme allows you to be part of such activities without engaging in them. Investing in the companies engaged in this sector. As a result, it gives your portfolio a diversified look.
High-Potential
The scheme is involved with the development procedure. These firms upgrade their performance with growing development. The scheme brings you potential with the growth in development of the nation. This potential gives you the caliber to face the market swings.
Investing Methods
The scheme gives you the advantage of investing by different methods. The methods are lump sum and systematic investment plans. The lump sum investing procedure takes a large amount at once to start. On the other hand, the systematic investment plan is convenient for you. It follows the regular interval for investing and takes a small amount. Shifting perspectives from features of the scheme to its other side. Let’s explore the risk factors of the scheme.
How Risky is the HDFC Infrastructure Fund?
Despite the features of the scheme. There are some points that you should consider while investing in it:
Political Risk
The sector is supported by many government initiatives. The sudden change in government’s policies and schemes affects the fund performance. Moreover, the change of government has a certain effect on the scheme. It shows a lack of productivity in the funds’ performance. As a result, it lowers your net earnings.
Market Fluctuations
The market has unexpected swings. When the market is not producing well including the sectors. The HDFC Infrastructure Fund has to face downturns in investment returns. Consequently, it brings a downfall in your earnings.
Sector-Specific Risk
The scheme addresses only the infrastructure sector. When the projects are not funded well and the scheme is not performing well in the market. This underperformance of the scheme will slightly affect your net earnings. Moreover, it limits your portfolio within the sector.
High-Cost
The scheme requires research-oriented strategies. The management team takes high fees for this planning. This makes the expense ratio of the scheme expensive. As a result, the cost is reduced from your earnings and ultimately lowers your income. To explore more in the scheme, let’s move on to learn the suitability criteria for the scheme.
Is the HDFC Infrastructure Fund Suit You?
Here the points outlined below give you the knowledge for the suitability of the scheme:
Seeking for Growth
The development is not a one-night game. This procedure takes time and effort. The scheme benefits you with a long-term horizon. If you want growth that lasts long. Then the scheme allows you to seek your evergreen growth.
Willing for Diversification
The scheme has a variety of investments in the infrastructure sector. If you are one who wants to explore the infrastructure sector. Then the scheme gives your portfolio with investments within the sector.
Seeking for Potential
The sector has to face the political issues and also the market swings. If you want to have a strong potential so that you can face the market challenges. The scheme makes you capable of facing downturns by giving you the experience of market swings.
High-Risk Tolerance
While giving growth and earnings, the scheme has time and market risks. If you are ready to take a chance with your investments and challenge the market traits. Then the scheme gives you good earnings that balance your economy. Let’s summarize the discussion about the scheme in the conclusion.
Final Note
In conclusion, the scheme reveals that it is sector-specified. Although it gives you high earnings there are several risks associated with it. But if you wish for strong potential while reducing the market risk then there is a way to SIP investments. This investment is affordable for you and can be adjusted easily based on your goals.
