Unopened - Why should you increase your investment in equity mutual funds now - Infrastructure Progress

Greetings from Tejas Lakhani, your trusted chartered accountant and investment guide. I hope this email finds you in good health and wealth.

You have been investing in equity and mutual funds for a long time and have seen good returns. But do you know why everyone is now favouring investment in mutual funds even after a good rally?

The answer is simple: India’s infrastructure - Digital and Physical.

• Internet consumption: India has more than 80 crores of internet users as of December 2022. The internet penetration in rural areas is 45%. UPI, Jan Dhan, and JIO all have contributed to IT infrastructure.

• Strong industrial and infrastructure base: India is the second largest producer of steel, cement, and coal, the fourth largest producer of iron ore and electricity, and the largest producer of two-wheelers.

• Strong agriculture base: India is the second largest producer of food grains, sugar, and horticulture, the largest producer of milk, cotton, and spices exports, and has the largest cropland and livestock.

Some of the initiatives by the Government are:

• The National Infrastructure Pipeline (NIP), which aims to invest Rs 102 lakh crore in infrastructure projects across various sectors by 2025.

• The PM GatiShakti Master Plan, which aims to improve the logistics network and connectivity of various modes of transport.

• The Urban Infrastructure Development Fund (UIDF), which aims to create urban infrastructure in Tier 2 and Tier 3 cities with an outlay of Rs 10,000 crore per annum.

• The interest-free loans to state governments for infrastructure investments and policy reforms.

The companies that will benefit belong to sectors such as construction, engineering, cement, steel, metals, power, telecom, etc. I have listed almost 9 projects of significance below for your reference.

These sectors are well-represented in the equity mutual fund universe. Many equity mutual funds invest in these sectors or have exposure to these sectors through their diversified portfolios. These funds have delivered impressive returns in the past and are expected to continue doing so in the future.

Most of the mutual funds have given 20-25% returns over the past 5 years. For example, here are some of the equity mutual funds in India and their five-year annualized returns:

• Nippon Smallcap Fund: 23.56%

• ICICI Smallcap Fund: 22.56%

• Sundaram Services Fund: 20.11%

SIP returns would be even higher. These are just a few examples of the many equity mutual funds that delivered good returns over many years. There are some good mutual funds that believe could generate high returns over the next couple of years. You can find more such funds by writing a query to us on

If you look at the list of infrastructure projects that are listed below, you will agree that India’s growth rate for the next 10 years could be much higher than last 10 years.

Thank you for your trust and support. We wish every one of us can participate in India’s growth story financially.

Sincerely,

Tejas Lakhani
Chartered Accountant

P.S. In this newsletter, I want to share with you some of the key projects that showcase India’s infrastructure progress. These projects are not only remarkable feats of engineering but also catalysts for economic growth and social development. They will also create new opportunities for investors like you who want to benefit from the infrastructure theme. Here are some of the projects that you should know about:

• 100 Vande Bharat trains: India’s first semi-high speed and engine-less trains, with features like automatic doors, bio-vacuum toilets, and Wi-Fi. Launched in 2019, they reduce travel time, enhance comfort, and boost Make in India. Since then, 100 more trains have been introduced on various routes across the country.

• New metro lines in 20+ cities: Metro rail is a convenient and eco-friendly mode of urban transport. At present, the metro network has expanded rapidly, covering over 900 km and improving connectivity, reducing congestion, and creating jobs. Some of the new metro lines that have been inaugurated or are under construction are: Ahmedabad Metro, Nagpur Metro, Pune Metro, Kanpur Metro, Agra Metro, Bhopal Metro, Indore Metro, Patna Metro, Varanasi Metro, Surat Metro, and many more.

• Delhi-Mumbai expressway (1,000 km long): A world-class highway connecting the two major cities with a 1000-km long corridor. It will have 12 lanes, smart features, and dedicated corridors for EVs and freight. It will reduce travel time from 24 hours to 12 hours and save fuel costs. The expressway will pass through five states: Haryana, Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra.

• New airports in Mumbai and Delhi (NOIDA): To cater to the increasing demand for air travel, the government has launched new airport projects in Mumbai and Delhi NCR. Two of the most prominent ones are the Navi Mumbai International Airport and the Noida International Airport.

• Trans Harbor Sea Link (22km) in Mumbai: A mega project that will connect Mumbai with Navi Mumbai via a 22-km long bridge over the sea. It will reduce travel time from 90 minutes to 30 minutes and provide access to the new airport in Navi Mumbai. It will be an engineering marvel.

• Chenab River Railway bridge (world’s highest): A part of the rail link project that will connect Kashmir with the rest of India. It is a part of the Udhampur-Srinagar-Baramulla rail link project. The bridge will be built over the Chenab River at a height of 359 meters, making it the world’s highest railway bridge. The bridge will have a length of 1.3 km and will withstand high wind speeds, earthquakes, and blasts.

• Char Dham highway in Himalayan terrain: A project that will improve road connectivity to the four holy sites of Hinduism in the Himalayas: Badrinath, Kedarnath, Gangotri, and Yamunotri. The project will involve widening and upgrading roads, building tunnels, bridges, and bypasses, and ensuring safety and security features. It will benefit pilgrims and locals. It will also enhance the strategic and defence capabilities of India in the border areas.

• Mumbai-Nagpur expressway (700km): A project that will connect the capital city of Maharashtra with the second capital city of Nagpur with a high-speed corridor. The expressway will have eight lanes, smart features, and nodes for development. It will reduce travel time from 15 hours to 8 hours.

• Mumbai-Ahmedabad High Speed Rail project: A joint venture between India and Japan that will introduce high-speed rail technology in India. The project will cover a distance of 508 km and connect Mumbai with Ahmedabad via 12 stations. It will reduce travel time from seven hours to two hours and offer comfort and convenience to passengers.

These are some of the amazing projects that are transforming India’s infrastructure landscape. They are also creating new avenues for investment in equity mutual funds that focus on these sectors.

I hope you enjoyed reading this newsletter and found it useful.

Stay tuned for more updates on India’s infrastructure story.

Happy investing!