When you need to invest in stocks on a long-term basis. There are several factors to consider before investing your hard-earned money into it but the first crucial factor is to check the last long of the products or services offered by that company.
The products should be in demand for at least the next 10 to 15 years. The last thing you can imagine after investing is that people do not need that product anymore and the company ran out of business.
Secondly, if you want to earn good profit returns from stocks in the long term, then you have to make sure that you are investing in the future growth sectors. You can always refer to share market advisor companies for that investment and the best Intraday tips.
Some conventional sectors in India like utility, mining, etc were beneficial in the past as they were growing at a satisfactory speed at that time.
However, these sectors are conventional and will rarely grow anymore in the future as compared to the rate at which they used to grow in the past time.
On the other hand, industries like information technology, machine learning, renewable energy, electric vehicles, etc are on the brink of speedy growth.
In this blog post, we are going to explain the best sectors for long-term investment in India for constant returns. Readout for more.
The previous century was the era of manufacturing after the industrial revolution happened. From the 90s, it was the time for the internet to boom. And currently, it’s the time for information.
As a common matter of fact, IT companies are growing at a much quicker rate compared to manufacturing companies.
And obviously, proficient employees in the information technology industry are getting more money than those in the conventional industries. There are many factors that are promoting the growth of this industry like technological progression, economic needs, the Indian government taking useful decisions like digital India, etc.
Some of the major companies in the IT Industry like TCS, Infosys, WIPRO, HCL, Tech Mahindra, etc have already built a good brand value and generated huge wealth for their shareholders.
FMCG (Fast-moving consumer goods)
FMCG is the most secured sector for long-term investment in India. Most of the products in this Industry have been used by generations of people for over 100 years or so and will continue in the future also.
Few FMCG companies like HUL, Dabur, Emami, ITC, Nestle, etc are well-known names in Indian households. The preponderance of the people living in Indian cities or towns has been utilizing their products for a very long time.
Unlike many sectors that follow the compression and extension cycle or Cyclical industries, the products manufactured by the FMCG industry will always be in demand.
If you are looking for a safe industry to invest, then the FMCG industry is one of the best sectors for long-term investment in India.
Housing Finance Companies
India is a developing country (in fact the fastest developing country around the globe). And housing finances companies or NBFC (Non-banking finance companies) are going to perform a vital role in the growth story of India.
This is easily one of the best sectors for long-term investment in India. Unlike major public sector banking companies in India, housing finance companies are performing well for the past many years and will continue to do so.
They have actually low NPAs (Non-performing Assets) when compared to the PSU banks. Few major players in this industry can be HDFC, LIC Housing Finance, Indiabulls Housing Finance, GRUH Finance, and DHFL.
“According to a CNBC report- The world’s fleet of electric vehicles grew 54 percent to about 3.1 million in 2017. The forecasted number of electric vehicles on the road around the world will hit 125 million by 2030. (Source: CNBC)”
It’s innoxious to say that the world will run on electric vehicles by the year 2030. Therefore if you have a futuristic approach and want to invest in the best sectors for long-term investment in India- you might not want to miss this revolution.
Here are a few companies that will be contributing a crucial role in the electric vehicle revolution and their share price will also increase :
- Batteries:Amara Raja, Exide Industries, Eveready.
- Metals: Hindalco, Vedanta, NALCO (National Aluminium Corp), Graphite India, Hindustan Copper.
- Auto Companies: M&M, Tata Motors, Maruti Suzuki, TVS Motors, Hero Motocorp, Bajaj Auto.
Long-term investment in consistent industries can help you to build great wealth to secure your future. As a Share market advisor company, we provide you important share market news and the best intraday tips.
As an intelligent investor- it makes much sense to invest in the growing sectors for long-term investment in India.