Healthy returns for investors with bets in banking and infrastructure funds

Fund managers see re-rating of stocks with asset quality expected to improve and capex cycle reviving

Investors with bets in banking and infrastructure funds have started seeing healthy returns with beaten-down corporate lenders likely to see improved profitability and private sector capital expenditure (capex) expected to pick up in the next few quarters.  

According to the data from Value Research, banking and infrastructure funds have posted more than 10 per cent trailing returns in the last one-month period (as of March 26), making them the top-performing equity categories for the period.

Fund managers say different factors are driving up the prices of infrastructure and banking stocks, but expectation of a benign interest rate scenario has been