One reply on this article “infra stocks”

1. Jagadees says:

   August 2, 2011 at 8:58 am

   @Raja
   I would be wary of touching infra stocks/funds because
   1. Infra stocks by its very nature is capital intensive which makes to vulnerable to rate hike and cash flow at times negative
   2. Beyond that the sector prospect depends too much on govt policies like land acquisition, tender process, toll collection etc. In the long run the sector which does not depend on the govt policies and action will create long-term wealth for shareholders.
   I would suggest you to stick with diversified mutual fund which will allocate its share of the fund in infra sectors when the good infra companies quote at attractive prices. Just keep it simple.

   Regards
   Jagadees

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