Infrastructure or Power ?

[bludsucks]

Hi All,

I have a surplus money of 50K and want to invest it, I have been researching and down to ICICI Pru Infrastructure-G or Reliance Diversified Power Sector Inst\Retail-G, need some expert advise on what to opt for....

I am a 30 yr old and have been investing in to SIPs this is the first time i am looking at a sector fund.

Best Regards

 

[Nava]

Hi All,

I am also intrested to know your views on this.

Experts pl. give your advise..

Regards,

 

[yodlee99]

In the long run, both of these are good funds. Infra funds have in the recent past, had a tough time. With the amount of future govt investments in infra, there is a lot that will get done in that sector. There are going to be new Infosys of the infra sector that will invent itself. Having said that, a lot depends on the execution which will distinguish the men from the boys.

I have both these funds. Rel div power has given good returns and will continue, hopefully. ICICI infra should also pick up steam, i guess.
As always, we suggest not to own more than 10-20% of your entire portfolio in thematic or sector funds, at any point of time. Invest using SIP on different dates of the month.

 

[bludsucks]

Thanks for the reply Yodlee...

From your response both these funds are a good bet, would it be wise to invest in both ? 25 each and subsequently another round next month. Though my intention was a one time buy.

Also I am surprise RDP is not rated on valuesearch. Is there a specific reason

 

[yodlee99]

Sure, if you are comfortable with the current valuations and do not want the money in the next 2-3 years, you can invest now. As always, if you are a long term player, you should not worry about the current high market levels.
As far as ranking, try morningstar.co.in or moneycontrol. There are a few other funds that have yielded good returns in the last few years like Rel Banking, Rel Pharma etc.