infra stocks

POSTED BY raja rakesh ON August 1, 2011 8:30 am ONE COMMENT

is it a good time to start investing in infra stocks and funds or is it better to wait for more rbi hikes.the infra stocks are at 52 week lows.any idea which is the best infra stock to bet?

One reply on this article “infra stocks”

  1. Jagadees says:

    @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

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Join 1,60,000 email subscribers

FREE Video Lessons directly in your email daily

144 page PDF ebook with best articles from Jagoinvestor

Get future articles directly on your mailbox + updates


6 PART VIDEO COURSE

FREE 

 

 

Check your Email and Click on the Confirmation Link

Join 1,60,000 email subscribers

FREE Video Lessons directly in your email daily

144 page PDF ebook with best articles from Jagoinvestor

Get future articles directly on your mailbox + updates


6 PART VIDEO COURSE

FREE 

 

 

Check your Email and Click on the Confirmation Link