Infrastructure is the basis of human life, without it there would be no electricity, no free water, nor would there be a transportation system. Water systems, electric systems, roads, transportation and telecommunication these are some apparent examples of infrastructure. It’s a basic need to run a country, organisation, society, enterprise or Water systems, electric systems, roads, transportation and telecommunication these are some apparent examples of infrastructure. It’s a basic need to run a country, organisation, society, enterprise or a service. Infrastructure is surely a high-cost investment but its significantly important for economic development, important for the economy to function and affluence of a country or business. That is why infrastructure is now considered as a shining opportunity to invest for better outcomes. For better growth these projects may get their funds from a publicly or privately or in some cases it could be a joint found of both type of investors.
I already did two posts were I give good examples for energy infrastructure investments, see the links below for this example of Investment in Infrastructure:
For expanding their business, many private business firms like to invest in infrastructure development of a country which will give very nice results to their business in near the future. For example: a fuel pipeline or railways network may be invested by an energy company in particular country from where company wants to refine petroleum, the beneficiary country is also allowed it because its beneficiary for both of them.
Infrastructure can also be considered as an assets class which is less variable in long term as compared to equity and normally produces more return. As a result, for its defensive qualities some companies and individual investors like to invest in infrastructure, the stock value of world’s infrastructure is estimated $48 trillion. Investors and Investment firms can invest in infrastructure through funds which are specialized in such as transport infrastructure or energy infrastructure. Many governments are now offering investors to invest in infrastructure of their country, which is an open offer for investors to jump into it, of course some of these investments are already profitable and will start generating fruitful results in very short term but there are many which could be turned into a profitable assets with some operations improvement.
Nowadays, its normal to listen that many investors are investing in infrastructure but still they are not getting appropriate results, here the problem is lack of expertise or perhaps risk takers, there are so many worthy projects out there which can extend your investment but still too many capital are chasing few infrastructure assets. It’s not easy to find a good prices investment in a well placed economy but change in investment tradition and having a foresight vision would definitely repay you for your efforts.