Investment is one of the major factors of increasing your financial worth to reach the financial goals of your life. We must focus on the critical factor of long-term investment before investing, one such factor is product/service and the company dealing with. Beyond it, an investor should also consider the growing sector for making profits from the long-term investments. The sector highly determines the growth pace of the company, a few sectors like automobile, service sector, renewable energy, etc, are on the leading edge of growth. Let us catch the four sectors that offer consistent growth and result greatly in long-term investment.
- FMCG (Fast Moving Consumer Goods)
The most potent sector for long-term investment is FMCG as products like shampoo, soap, oil, etc have become the essential aspects of everyday life. This industry has been serving over 100 years and continues to hold great potential in the upcoming years. As the FMCG sector serves the basic necessities of everyday life, this factor aids in raising the scale of growth. With a change in the lifestyles of urban as well as rural buyers, FMCG has become the choice of rural and urban societies as a whole. However, investment decisions should be taken after considering valuations.
It is great to hear that the world all along with India is making a gradual shift towards electric vehicles by 2030. If one seeks to invest in the growing sector, then automobile is the fair choice for long-term investment as it looks forward to bring the revolution in the world through electric vehicles. With the increasing demand in the -wheeler segment and with the growth of the automobile sector, demand of automobile accessories is also growing. Automobile component manufacturing units such as Kranti Industries play a significant role in the growth of the automobile industry and hold high potential for the investors as long-term investments. Kranti Industries is growing at a great pace and to set new heights in the automobile industry, it is coming up with its own SME IPO tomorrow, i.e., 14th February 2019.
Banking is another reliable and old sector which has generated great returns for investors in the past. This sector is highly preferred by the investors for long-term investment. Banks receives money as a deposit and lend to those in need and make money in the difference of interest rates. With the rapid proliferation of mobile phones, financial services institutes are growing enormously that in turn make the banking sector a great choice for long-term investment.
The fastest growing and highly potential sector for long-term investment in the Service sector. The service sector is highly responsible for the business activity of the economy and it also lays a great hand in shaping the technology of the nation. Service sector contributes over 60% to the economy of India and 28% in the employment of the country, that makes it the fastest growing sector of the national economy.
|Sectors (NIFTY Index)||Return (2011-2017) (Compounded Annual growth Rate)|
|NIFTY Service Sector||11.75%|