The Hindu Business Line : SBI MF sees better returns from infrastructure over next 3 years

New Delhi May 11 SBI Mutual Fund anticipates superior returns from investments in infrastructure over the next 3 years as against the return that a bank deposit could offer to an investor during this period.

"The view of this fund house is that interest rates are at its peak or near its peak. It will go down in the coming days.

The possibility of superior returns in infrastructure is more," Mr Sanjay Sinha, Chief Investment Officer, SBI Mutual Fund, told Business Line in response to a query at a roadshow for launch of the infrastructure fund.

The New Fund Offer of the `SBI infrastructure fund-Series-I' opened today and would close on June 8. With an estimated Rs 14.5 lakh crore of investments to be made in the country's infrastructure during the Eleventh Plan, the fund house has come up with a three-year close-ended infrastructure fund to make the most of this investment opportunity.

"We plan to have a portfolio of 40-50 stocks in the infrastructure fund. About 65 per cent of the fund would be invested in companies involved in the infrastructure space. We will adopt a top-down investment strategy and go from the most potential sector to the individual stock within that sector," Mr Sinha said.

Higher Funds

The proportion between large-cap and mid-cap stocks would be in 70:30 ratio. This fund would not have any sectoral or market capitalisation bias, Mr Sinha said. SBI Mutual Fund expects to garner more funds than what its previous NFO (SBI One India Fund) had attracted.

SBI Mutual Fund had raised Rs 1,800 crore from its One India Fund in November last year. "The comfort in the infrastructure theme is its visibility.

This infrastructure fund being far more attractive in terms of visibility may get higher funds than what was raised through the previous NFO," Mr Sinha said.

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