Infrastructure is a viable investment option in 2018. Finance is collected from ordinary investors and ploughed into big public projects, many of which are Government-backed private finance initiatives or public/private partnerships. The appeal to this type of investing is clear with a steady cash flow. Investors can look to regular income and yields of around 5% – a cut above returns on the high street.

Investing Money – high returns

Amid today’s snail-like economy, demand among investors desperate for returns is rising so while capital growth may be slow since most of these giant projects are already completed, the income stream should more than compensate. 

Investing money – ‘physical’ infrastructure

Up-and-running ‘physical’ infrastructure such as hospitals, prisons and schools are a major attraction for investors. Essentially, it is a steady and stable cash flow, which is ideal for investors seeking reliable returns. In many instances, projects are set up with contracts offering some protection against inflation. 

Investing money – your country needs you!

Backing the UK’s infrastructure has been a political rallying call for many a year but last November Chancellor George Osborne revealed a plan to invest up to £250 billion into telecommunication, transport, and power networks. The ‘National Infrastructure’ plan – nearly 500 projects that require investment – hasn’t quite progressed yet so investment scouts are focusing on existing projects.

Investing money – how does it work?

If you buy shares in an infrastructure fund – an investment trust – which directly owns the existing physical assets, your money will pay for a new hospital, or supply concrete for a council building extension etc.

Investing money – we’re here to help 

There are only a handful of infrastructure funds so thorough analysis is required. 

Talk to the experts at Compare The Financial Markets.

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