Rs. 3,500 crore withdraw from top infrastructure mutual funds

Infrastructure funds mutual  have been the biggest casualty of the recent Indian stock market down. Bleak sector outlook and under performance of funds have prompted investors to redeem about 3,500 crore from core sector funds over the past 12 months.

Top funds such as ICICI Pru Infrastructure Fund, DSP Blackrock Tiger Fund, SBI Infrastructure Fund, Tata Infrastructure Fund, Reliance Infra Retail Fund and HDFC Infrastructure Fund have lost  about Rs. 940 crore since June, 2010..

Policy inaction, higher interest rates and slow infrastructure building activity are said to be the major reasons behind the sell off. As a sector, infrastructure has been a significant under performer in the past 15 months.

Large cap. infrastructure stocks like L&T, BHEL and Tata Power have fallen 20-30% while mid cap infrastructure stocks like Punj Lloyd, Gammon India, Jaypee Infra, Adani Power, GVK Power and GMR Infrastructure, among several others, are currently trading near their historically low prices.
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