Insights to Tata Infrastructure Fund
Do you want to invest in India’s Growth Story? If yes, then you need to check on Tata Infrastructure Fund. The scheme invests in the growing infrastructure sector of the country. The scheme was started by the well-known Tata Mutual Funds.
The scheme has been running since December 31, 2004. In addition, the motto of the scheme is to create capitalization for a long time. The scheme invests in firms that are engaged in the infrastructure sector. These firms are involved in all market cap sizes.
Furthermore, the market cap distribution of the scheme is like a giant cap has 25.84%, a large cap has 18.03%, a mid cap has 34.57%, and a small cap has 21.56%. As a result, it gives you an advantage of portfolio diversification.
The scheme has better performance than the benchmark BSE India Infrastructure TRI. Moreover, the scheme has total investments under its management of Rs. 2, 451.22 Crore till date October 31, 2024. Also, the scheme has given a better return rate of 15.62% since its start than the benchmark.
Additionally, Mr. Abhinav Sharma is managing the investment allocations in the scheme. The expert team designs plans and strategies for you by understanding the market statistics. These plans are formed in such a way that they achieve your desired goals.
Expanding your knowledge of the scheme. Let’s investigate the various perspectives of the scheme.
What are the Features of the Tata Infrastructure Fund?
Here in this section, you’ll explore the features associated with the scheme.
1. Strong-Growth Potential
The scheme invests in the growing infrastructure sector. Hence, the development process takes time and effort. Moreover, challenges are part of the development process. Thus, the scheme gives you strong growth potential to face such challenges. Also, build your willpower strong enough that you can easily survive in the challenging market.
2. Long-term Investment
The scheme benefits you with better earnings when investments are held for a long time. That implies that the scheme grows its productivity parallel with the development process. You can achieve a consistency of good earnings by investing and holding for at least 4-7 years or longer.
3. Management Team
The Tata Infrastructure Fund has a knowledgeable group that understands the market statistics. Moreover, they keep your requirements on priority and design investing plans accordingly.
4. Diversification
The scheme invests in all market sizes firms involved in the infrastructure sector. Hence, it gives you exposure to experience benefits from various market cap firms. As a result, it makes your portfolio diversified with stability and growth.
5. Government Support
The infrastructure sector is supported by government policies and initiatives. As a result, the frequent funding of government projects enhances the scheme’s performance. Consequently, improving productivity results in good net earnings.
6. Investing Methods
The scheme provides you with various investing methods. These methods are formed according to your financial goals. The lump sum method gives you wholesome benefits by investing a huge amount. On the other hand, a systematic investment plan benefits you by taking a small amount.
Let’s learn more about the scheme by taking a closer look at the other side of it.
What are the Risk Factors of the Tata Infrastructure Fund?
On the other side of the scheme, there are some risk factors that it holds.
1. Political Issue
The infrastructure sector has the support of government initiatives and policies. Any changes in the policies or changes of the government party affect the sector. Hence, the effect of the sector’s degradation directly shows an impact on the scheme. As a result, the scheme also faces challenges during that time and consequently, you earn less.
2. Market Volatility
The market has inherent fluctuations. The economy of the market is volatile. In case the market is not doing well including the infrastructure sector. It directly affects the engaged firms. Also, it is reflected in the performance of the Tata Infrastructure Fund. Consequently, it gives you less earnings from the scheme.
3. High Cost
The research and operational work takes time and money. Hence, it takes high charges. Also, investments in small cap firms have liquidity challenges. The frequent investing and redeeming makes the expense ratio higher for the scheme. As a result, the cost is reduced from your net earnings.
Building your knowledge about the scheme let’s explore the steps you need to take for investing in it.
How to Invest in the Tata Infrastructure Fund?
Expanding with the knowledge about features and risks. Let’s learn the steps that will help you during the investing process.
1. Select Platform
Choose a suitable platform that you want to invest through. You can choose either third-party apps or consult through a financial advisor. Also, you can visit the official website.
2. Choose Investment Strategy
Select an investment method that suits your financial goal or requirements. You can choose a lump sum if you are interested in investing a huge amount at once. Or you can go with a systematic investment plan if you want to invest bit by bit regularly.
3. KYC Verification
You have to authenticate your bank account through the process of KYC (Know Your Customer). This verification process takes your PAN details and Aadhar Card details as ID proof.
4. Review and Confirm
Reevaluate the details and terms and conditions related to the scheme. Then confirm to proceed with your investment.
5. Monitor Investments
You can easily monitor your investments’ progress through messages, and emails. Also, through the apps you are investing.
Let’s bind up the discussion on the scheme and take a recap in the conclusion.
Final Note
To summarize, the discussion has shown that the scheme is contributing to the country’s growth. Furthermore, it benefits you with portfolio diversification, potential growth, and many more. While schemes can offer various benefits, they also come with risks.
But wait you can reduce these risks with SIP investments. Its rupee-cost-averaging feature is a boon for you. It mitigates market risks and balances your economy through investing at regular intervals. Whether you want to pursue your passion or want to live a peaceful life after retirement. This investing approach is beneficial for you. So let your growth journey flourish with time.
