have always been known to be a safer option in contrast to other asset class, such as equities and real estate. It’s less volatile!
Projects like roads, airports, railways, telecommunication facilities and more are critical to the growth of the economy. And irrespective of how slow an economy is growing, growth is almost always imminent in a democratic society.
So, if you have decided to opt for infrastructure investments to diversify your portfolio, it’s a great decision. Even more so today than ever…
According to a report
on Livemint, in India, there are 1,263 projects in progress across sectors like power, road, and railway. Citing the latest Economic Survey, the same report adds that India will face a $526 billion infrastructure investment gap by 2040. If that’s really true, it clearly signals a supply deficit. The demand’s high, supply is low. So, your infrastructure investments today can bring you big rewards in the following decades.
(Courtesy: The National)
Now coming to the part of de-risking. Personally, with whatever I know, in broad terms, it’s almost similar to other asset classes. You have to be careful of the same factors, take the same measures when investing in infrastructure. It starts with doing a thorough research to understand the market very carefully. Don’t rush towards it just because it’s shinning; it might not necessarily be a diamond. So, take your time to understand things better. If you have a consultant, intimate your plan and financial goals.
Also, most importantly, pick the right agent or agency. There are many out there in the market. So, do your research on them. Don’t blindly buy into their advertisements and promises. Factor how long they have been on the scene, what kind of profile they have, and so forth.
Again, infrastructure investments are much less volatile. So, you don’t face many problems. And if you’re an experienced investor, you likely already know how to ace.