Infrastructure investment explained

We’re all familiar with the word ‘infrastructure’, the basic systems and services that a country needs to function, from the roads you drive on, the airports you travel to and from and the energy and communication networks that are essential for enabling productivity in any modern economy, but how can you invest in infrastructure?

Capital outlays for infrastructure projects can require vast sums of money, which is why governments have turned towards the private sector to help fund these projects. Infrastructure is an asset class which has grown in popularity over the years. Infrastructure is generally regarded as a defensive asset class, which has a low correlation to other assets. Some companies and individuals choose to invest in infrastructure funds because of their defensive characteristics, such as funds involved in water infrastructure or transportation.