Bet on infrastructure mutual funds to benefits from budget 2022

The budget may not have much for mutual fund investors. But investors can bet on the infrastructure sector funds to benefit from the budget puch to the sector.

The budget may not have much for mutual fund investors. But investors can bet on the infrastructure sector funds to benefits from the budget push to the sector.

"Infrastructure funds might see an uptick as the underlying sector gets a boost. In the last year, infrastructure has come to the limelight with the investment and that can be seen in the returns also.

Generally, infrastructure funds are less risky than other sector funds. This is because of the wider universe of these schemes," says Vishal Dhawan, Founder, Plan Ahead Wealth Advisors, a financial advisory firm, based in Mumbai.

The Union Budget 2022 has put great emphasis on infrastructure development, under the new PM Gati Shakti program. Finance Minister Nirmala Sitharaman said that this new scheme is a transformative approach for economic growth and sustainable development driven by seven engines- Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure. Mutual fund advisors and fund managers believe that this push is going to be beneficial for investments in the infrastructure segment.

"PM Gati Shakti Master Plan for Expressways will be formulated in 2022-23 to facilitate faster movement of people and goods. The National Highways network will be expanded by 25,000 km in 2022-23. ` 20,000 crores will be mobilized through innovative ways of financing to complement the public resources," said the Finance Minister.

The infrastructure segment got a push from the government in the Union Budget, 2021 as well. The sector has fared well since then. The mutual fund schemes investing.

What is Net Asset Value (NAV)?

The performance of a Mutual Fund's strategy is measured by its Net Asset Value (NAV). NAV stands for net asset value, which is the market value of the securities held by the scheme. Mutual funds put the money they collect from investors into the stock market. Because the market value of assets fluctuates every day, the NAV of a scheme fluctuates as well. On any given day, the NAV per unit is calculated by dividing the market value of a scheme's securities by the total number of units in the scheme.

In compliance with SEBI Mutual Fund Regulations, the NAVs of all Mutual Fund schemes are declared at the end of the trading day after markets have closed.

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