Investment opportunity in foundations of Viksit Bharat!

A well developed, world class infrastructure is a key to attain the status of a developed economy, a Viksit Bharat. India’s infrastructure space has seen a sharp increase in overall investment in the past decade, and this has led to increased infrastructure capacity and its eciencies. However, the job is far from done, with our infrastructure still behind peer countries on a per capita basis. The below comparison with China shows how India needs to continue to invest heavily in its infrastructure. Growing spends in infrastructure could benefit companies operating in this space – across asset developers, asset owners and asset financiers. Consider investing in the HDFC Infrastructure Fund, an open ended equity scheme investing in companies engaged in or expected to benefit from the growth and development of infrastructure.

Comparison between India of today vs China of 2014, when they were at GDP US$10trn

India at US$ 3.5 trn vs China when it was at US$10 trn in 2014

Conclusion: India will potentially need to triple the overall capacity developed in 75 years, in a span of 10 years, to be a growing US$ 10 trillion economy. This could mean significant investments in the infrastructure space.

Why should one consider investing in HDFC Infrastructure Fund?

Infrastructure plays a critical role in India’s self-reliance and economic prosperity, and is currently receiving significant focus from the government.
India’s infrastructure space is positioned well with an increase in capex by government, corporates and households.
Changes in the infrastructure space have improved economics and potential longevity of the upcycle. We have entered an upcycle phase.
Some companies within the Infrastructure space have improved fundamentals.
This fund invests across India’s infrastructure space through asset developers, asset owners and asset financiers. Actively pursues diversification with market caps and infrastructure segments.

To capture the opportunity from infrastructure growth, you could consider investing in the HDFC Infrastructure Fund that invests a minimum 80% of its assets in the companies engaged in infrastructure theme. For more details, refer the detailed presentation here.

Key risks in investing in thematic funds

Sectoral and Thematic Funds have been in vogue in the past few years, capturing increasing share of investments. While these funds allow investors to take higher exposure to a specific theme / sector, an investor must be aware that these funds carry higher risks than diversified equity funds, as pockets of the market can often have longer and sharper drawdowns than the overall market. Investing in the HDFC Infrastructure Fund exposes the investor to the below risks as well:

So, be a risk-aware investor, and based on your risk appetite, consider investing in the HDFC Infrastructure Fund to take exposure to the Infrastructure theme!