Infra MF show good performance
Mutual funds (MFs) that invest in stocks of infrastructure companies are now performing well in the short term. The funds have gained 10% and 17.8% in the one-month and the three-month timeframe respectively. Shares of capital goods and power companies are gaining on the stock exchanges are gaining on hopes that an economic recovery would boost the fortunes of these sectors. The sectors had been hit down by the slowdown.
The macro factors have improved and the outlook is positive. The recovery in rupee has also been very helpful. That is very comforting in case of foreign exchange transactions.
Last Thursday, the net asset values (NAVs) of most equity schemes under the infrastructure category hit their 52-week highs. In the two-year, three-year as well five-year timeframe, Infrastructure funds were the worst performers in the equity MF category.
Source: The Times of India
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