As India is facing tough times during the peak of inflation and almost recessional situations, a few sectors are still finding their place to grow in the future. The government promotions in these sectors and a major shift in consumer behaviour are the driving factors for lifting them up and might lead you to double your money.
Investing in stocks is risky, but if you invest in the right companies in a growing industry, you will definitely be able to create wealth for yourself. However, there is the misconception of investing in a booming company that all the companies in growing sectors will give you handsome returns. It is only a misconception, as you have to invest in a fundamentally strong company.
Booming sectors will definitely play a vital role in giving you more returns than other sectors, but the risk of mismanagement and other microeconomic risks will remain the same; only the annual average return will change.
Let's evaluate a few sectors according to our research that will be best suitable for you to maximise your returns by minimising your risks.
India has approximately 560 million internet users, which makes it the second largest online marketplace after China. Companies are focusing majorly on their online services and increasing their IT staff due to the workload in the sector. Around 33 Indian IT startups got the status of Unicorn which means they have surpassed the $1 billion market valuation in the last 2 years. The Indian IT sector has given breakneck returns of 138% during the same period. We can give credit to the pandemic for such a staggering growth of the IT sector in India.
When an industry grows, investors' money also grows eventually. Some of the companies are fundamentally strong enough to consider before making an investment-
- Tata Consultancy Services Limited
- Larsen & Toubro Infotech Ltd
- Infosys Ltd
- Wipro Limited
- HCL Technologies Ltd
The rapid increase in awareness of the concept of REITs and stable market conditions are making people again start investing in real estate at pre-Covid levels. Those who have a huge corpus to invest in real estate are investing in physical properties commercially. Those who do not have a lump sum amount of money started investing in REITs.
There are a few companies whom you can consider while choosing such a sector-
- Godrej Properties Ltd.
- Oberoi Realty Ltd
- Prestige Estates Projects Limited
When we talk about REITs, there are majorly three companies-
- Brookfield India Real Estate Trust REIT
- Mindspace Business Parks REIT
- Embassy Office Parks REIT
Renewable energy sector
As India has a commitment to reduce the Emissions Intensity of its GDP by 45% by 2030, the government bends its focus on the renewable energy sector and promotes it directly and indirectly. Indian renewable energy investments are touching new heights on a yearly basis. India has invested $79 billion during the last 7 years, $6.4 billion in FY 2020-21, and $6.6 billion from April 2021 to July 2021 only.
There is a lot of potential in the renewable energy sector as the government majorly supports it. Renewable energy sector such as solar energy, wind energy, and usage of electric vehicles.
Few companies you can consider while investing in renewable energy sectors-
- NTPC Ltd.
- TATA Power Company Ltd.
- Reliance Power Industries Ltd.
- Indraprastha Gas Ltd.
An ageing population in India, the development of disturbed lifestyles among youngsters, and the increased population in cities might be the reason why the healthcare sector has emerged a lot. The usage of information and biotechnology has increased rapidly to speed up the process of disease detection. The main source of revenue is increasing day by day due to the above-mentioned factors, which make the sector more vulnerable to investing more and getting handsome returns.
There are a few companies that you can consider while investing-
- Sun Pharmaceutical Industries Limited
- Divi's Laboratories Ltd
- Cipla Ltd.
- Dr Reddy's Laboratories Ltd
- Apollo Hospitals Enterprise Limited
- Max Healthcare Institute Ltd
When you invest in stocks, you indirectly trust the companies and industries. Make sure that you trust the right one with your money so that your money will make money.
Anushka Trivedi is a freelance financial content writer. She can be reached at anushkatrivedi.com
Disclaimer: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.