The Mutual Fund (MF) industry have lined up to offer infrastructure dedicated funds as Sebi appointed special committee on the infrastructure dedicated funds is expected to submit its final report by the end of this month.
After the successful debut of SBI infrastructure fund series - I, some more fund houses also have filed their prospectus with the regulator. Kotak Mutual Fund has filed its prospectus with Sebi to offer infrastructure fund.
Another fund house Tata Mutual already has an infrastructure fund. Now, it plans to offer a global infrastructure fund which will invest in infrastructure companies in India and abroad. MFs have already been launching such funds prior to the appointment of the Sebi panel.
SBI infrastructure fund series - I has made its debut this week at a net asset value (NAV) of Rs 10.11 per unit. The new fund offering (NFO), which closed on 11 June 2007, has mopped up Rs 2,536 crore from 6.7 lakh applicants.
The infrastructure funds would primarily focus on diversified basket of equity stocks of companies that are directly or indirectly involved in the infrastructure growth and in debt and money market instruments.
The infrasturucture funds proposes to harness the investment opportunity in the infrastructure sector from the proposed spending of over Rs 14 lakh crore in the 11th five-year plan by the Union government. The infrastructure sector mainly includes roads, power and railways.
Sebi has appointed a committee on infrastructure-dedicated funds in March following the announcement of Union finance minister in this year's budget that MFs can offer infrastructure dedicated funds for which the regulator will formulate a broad guidelines.
The three-member committee headed by UK Sinha, CMD, UTI Mutual Fund, has already met several times to finalise the guidelines. And, the committee is expected to submit its final report by the end of this month.
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