Infra funds could gain from large budgetary allocation, say analysts

On the private-sector side, capacity utilisation has risen across several industries

The finance minister announced a significant hike in capital expenditure (capex) in this year’s Union Budget. Infrastructure (infra) funds of mutual fund (MF) houses could gain significantly from the government’s plan to pursue an infra development-led growth model.

New cycle underway  

Fund managers believe this is a good time to enter infra funds. The capex budgetary estimate for 2022-23 is Rs 7.5 trillion - 24.6 per cent higher than the Revised Esti­mate of Rs 6.02 trillion for 2021-22. 

“The segment has been the beneficiary of aggressive budgetary allocation by the government. This has given construction companies good order book visibility and will help