Sahara MF eyes social infrastructure

In times of stretched valuations of capital goods companies, mutual funds are redefining infrastructure by including various sectors under the core sector umbrella.

Sahara Mutual Fund, which became the third fund to launch an infrastructure fund on Tuesday, announced it would be looking at sectors such as banking and health-care in their investment portfolio.

"We see great opportunities in sectors such as banking and healthcare infrastructure which have remained highly untouched till now," said Rajiv Shastri, CEO of the fund.

"Our definition of infrastructure includes all those sectors which contribute to the growth of the economy though we will be investing in 14 to 15 sectors. All these will, however, be directly or indirectly related to infrastructure," he said, pointing out that more money needs to be invested in the social sector as well.

According to Naresh Garg, chief investment officer, infrastructure is not a story for next six months but a story for next decade.

Current valuations, he said, would not affect the returns of the fund.

Sahara infrastructure Fund is a no entry load fund and would invest at least 70 per cent in equity and the balance in debt. It is the only mutual fund with daily variable AMC (Asset management Company) fee structure.

It is the fifth fund offered by Sahara Mutual Fund. The investment options are growth, dividend payout and dividend reinvestment.

Besides, it will also offer systematic investment plan and systematic transfer plan facilities to investors.