Amid a volatile, low-interest market, infrastructure investments through incentive debenture funds are a way to generate value through dividends and capital gains through direct investor participation in one of the fastest growing sectors. These assets have an attractive risk / return profile and help protect your investment portfolio from the effects of inflation.
By investing mostly in infrastructure project bonds, these funds are exempt from income tax and have therefore increasingly attracted investor interest. However, the tax benefit of this fund category is not its only attraction. Here are the main advantages of this type of investment:
Credit Risk Dilution
The advantage of choosing to invest in infrastructure through a fund is that you have access through a single application to a set of encouraged debentures, diluting the risk in the event that one company or another has financial problems.
The management teams of these funds have qualified and experienced corporate and credit analysts who carefully select securities according to the fund’s assumptions and objectives.
Redemption of fund shares is simple and much easier than trying to sell debentures in the secondary market, i.e. when they are traded between investors and dependent on market liquidity.
There are few such funds available in the country. This is still considered a new market. However, with the recent change in the rules for this type of fund, which gives managers more flexibility to set up portfolios, added to the downward trajectory of the rate, we can expect this market to grow and evolve.
Therefore, Frederic Michel-Verdier recently expanded its portfolio of infrastructure investment funds. Count on our experts to help you find the best options that fit your investor profile and goals.
We have great expertise in large scale infrastructure investments. We have great relationship and partnership for the utmost benefits of the investors.