Advisers and experts are of the opinion that investments in infrastructure funds should be avoided and Diversified Mutual Funds could be picked as an investment option as it is very stable in nature. In Infrastructure Funds the short term returns could be on the higher side but in the long run the returns could be adversely affected based on the performance of the sector in which the fund is invested.
A lot of Infrastructure funds have invested in the Banking and Financial Services stocks, which is the most popular sector for investment even by the Diversified Equity Funds. A comparison of Banking and Financial services sector funds shows that this category has given a negative return of -34.05% and -14.1% in the years 2011 and 2013 respectively, pointing that the stocks in these were badly beaten in that period. However, in the year 2014 it has shown remarkable recovery and delivered a positive return of 63%. Hence, the negative returns in the banking and financial services sector is also portrayed along with other sectors in the returns of the infrastructure funds.