MUTUAL FUND ANALYSISOn the urban infrastructure
front, it aims to cover 50 cities
with the metro networks. With
4 00 km of metro lines currently
operational, the government
could have to add additional
~700 km of metro line to cover
50 cities, which could entail
investment of 2.8-3.5 lakh crore. Assuming 50% as civil work, it could present an opportunity of 1.4 lakh crore-
1 .85 lakh crore.
In terms of airport, it aims to
double the number of
functional airports in the next
five years (101 airports
functional currently). As per
media reports, the construction
of 100 new investments could
entail investment of US$60
billion (| 4.2 lakh crore).
On the housing front, it plans to
ensure a pucca house to every
family who are either living in a
kuchha house or have no
access to housing by 2022.
Under the PMAY-U scheme, the
government has targeted ~1
crore houses in urban areas. As
on March, 2019, ~0.3 crore
houses were supposed to get
completed. The remaining 0.7
crore houses construction
could entail investment of 4.2 `
lakh crore and would present a
good opportunity for EPC
players.
All these augurs well for
efficient and well managed
companies operating in
infrastructure and allied
activities. We believe the
Infrastructure sector may
outperform and lead the next
market rally.
Investors may invest in
infrastructure funds as part of
their thematic allocation with an
investment horizon of more
than two to three years.
Being thematic in nature,
allocation to infrastructure
funds should not exceed 5-10%
of an investor's overall equity
portfolio. Our preferred funds in
this sector are Sundaram Infra
Advantage Fund, Tata
Infrastructure Fund and UTI
Infrasturcture Fund.