Utilities are among the safest investment bets courtesy the regulated nature of their business, but these also have their share of concerns, which could adversely impact their suitability as investment options. The increasing regulatory glare and high debts on their balance sheet could keep investors away from the space. Importantly, they remain exposed to the eventual uptrend in long-term interest rates, though that admittedly isn't a near-term issue.
Utilities may offer a lower-risk alternative, but they are far from risk-free. Below, we point out some factors which investors should take into consideration before betting their money in this space.