Is L&T Infrastructure Fund Making a Comeback in 2019?

by MySIPonline
Is L&T Infrastructure Fund Making a Comeback in 2019?

Infrastructure sector has been performing well in the trading sessions of the last few weeks. The rolling returns of L&T Infrastructure Fund in the recent rally of the equity market have been outstanding and above the benchmark. After the downtrends of infra stocks in 2018, the majority of the stocks related to infrastructure sector have been on the recovery mode as the government has been emphasising on the development of Indian Infrastructure before the Lok Sabha elections of 2019. The experts at MySIPonline have performed multi-level analysis of L&T Infrastructure Fund to assist the investors in making a better decision regarding investments. 

What is L&T Infrastructure Fund?

L&T Infrastructure Fund is a mutual fund which invests the pooled corpus in the pure equities of companies which are directly related to infrastructure development. The companies chosen by the fund manager can be of cement, construction, telecommunication, designing, electronics etc. L&T Infrastructure Fund is an aggressive sectoral fund as it has a significant corpus allocation in the mid and small cap stocks. 

Recent Performance of the Chosen Stocks

The construction and metal stocks have been gaining value in the recent rally as the demand has been increasing in the recent weeks. Ramco Cements, Grasim Industries, Ambuja Cements etc are the top holders in cement industry which have gained 15-20% in the last 1 month. L&T Infrastructure Fund has the highest holdings in Larsen & Toubro and Reliance Industries which have gained marginally in the last few trading sessions and are looking strong for the upcoming months. Out of all the 46 stocks selected by the fund manager, the majority of them have been gaining in the recent market trends. As a result, L&T Infrastructure Fund has been rapidly gaining and is expected to continue the run in the next few weeks. 

Is it Too Late to Invest?

The investors who have been awaiting a comeback of the infrastructure related industries can now invest with the hope of high return in the next few months. The market is supporting the growth of infrastructure stocks which can be utilised by the top performing infrastructure fund like L&T Infrastructure Fund. For new investors, it is the right time to invest as the market is likely to stay positive for the infra stocks. Those who have already invested can make an additional purchase to maximise the profits.

Who Should Invest?

The sectoral funds are mostly recommended to the experienced investors as the trends in the market play a vital role in the performance of sectoral and thematic mutual funds. However, due to the consistent performance of the fund in the past, SIP can be started by new investors as well. It has a high-risk factor and can be extremely volatile at times and investors must be ready for it. The sectoral funds are risky as most of the stocks related to a particular sector tend to follow a similar pattern. Apart from that, L&T Infra Fund has a significant allocation in the mid and small cap stocks which further increases the risk. 

L&T Infrastructure fund has been making a comeback in the last few trading sessions of 2019. According to the market conditions, the fund can continue to deliver high returns in the next few months. To know more about the details of L&T Infrastructure Fund, connect with the experts of MySIPonline at 9660032889 and get the optimum assistance regarding investment in mutual funds.

March 23, 2019
by MySIPonline
MySIPonline Blog