SBI MF to bet big on Indian Infrastruture growth
SBI Funds Management Pvt. Ltd. has launched a three-year close-end equity fund to invest in companies likely to benefit from India's rising expenditure on infrastructure. Three of India's top five performing funds in 2006 were pure infrastructure funds and have attracted attention of investors and fund houses.View - New Fund Offers open NOW)
"If you look at all the 2,600 stocks that are traded today, you will find the infrastructure theme to be the most powerful," said Sanjay Sinha, Head of Equities, explaining the launch of SBI Infrastructure Fund-Series I.
A mid-April poll of 13 fund houses found equity funds invested more than a quarter of their assets in sectors such as basic engineering, construction and financial services.
The scheme will look to opportunities likely from India's proposed 14 trillion rupees investment on infrastructure in the eleventh five year plan, Sinha said.
"What we have spent in the 50 years of planned development is nothing as compared to what we now plan to spent", Sinha added.
The fund, open for subscription from May 11 to June 8, would invest at least 65 percent of assets in equities and rest in debt and money market instruments, the asset manager said.
The fund house managed assets worth about Rs 183.39 crore at the end of April, data from Association of Mutual Funds in India showed.
posted by Calvin @ 10:16 AM
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