Large Budget allocation to infrastructure makes theme attractive

While infra funds can offer good returns over long term, returns tend to swing wildly from one year to next

The ‘Build India’ story is back on investors’ radar screens after Budget 2023. Finance Minister Nirmala Sitharaman has proposed a capital expenditure of Rs 10 lakh crore in for the 2023-24 financial year (FY24), a three-fold jump over the FY20 allocation.

Investments in railways, airports, and roads have received a big boost. The enhanced focus on green energy and urban infrastructure will also benefit several infrastructure players. Many retail investors are keen to participate in the theme via the mutual fund route. They should do so only after factoring in the risks.

“High allocations to infrastructure in the Budget could