Looking for long term investments | Checkout these sectors

 Looking for long term investments | Checkout these sectors

Every trader wishes to diversify their portfolio and invest in sectors that will yield them good results in long term. The last thing you want is a particular sector to die because the availability and demand have gone low.  While investing, make sure the sector has the potential to run for at least 10-15 years, and the companies won’t run out of business. But how do we find a stable sector in this constantly changing world? The answer is, you don’t.

You always look out for sectors that are growing and as the potential to churn out profits in the next few years. If you look out for sectors that have grown in the past, you’ll notice that those sectors won’t see the tremendous growth anymore. Thus, finding out and investing in sectors that have growth potential is a must.

 Here are a few sectors that are on the verge of growing tremendously in the next few years.

 

●     Healthcare

It is a harsh reality that physical ailments are now a common thing in every household, and the need for healthcare is growing, now more than ever. Technical advancements have transformed healthcare in a way, that no one could imagine 20 years ago, from today. As per the Investment Commission of India, the medical equipment stream is expected to grow at 15% and the nursing homes to grow at 20%. However, diagnostics has very high growth potential, at 30% within healthcare. The growth of the middle class has improved the healthcare infrastructure, increasing bed capacity. The health insurance business also is at a boom.

 

●     Banking

Banking is often considered a bullish sector. A bullish sector, in the investors’ vocabulary book, stands for a stock that is characterized by growing prices. Thus, being a bullish sector, the banking sector is highly recommended for buying and holding stocks. The digitalization of banks has made it easier for the public to reach out to banks, and with the highly skilled manpower, the sector has the potential to bring out productivity and profitability, thus adding to the increase in demands of banks and their services.

 

●     FMCG (Fast Moving Consumer Goods)

The FMCG industry has been growing at a tremendous rate and is expected to grow over the next few years. FMCG products include all the products that we use in our everyday life, and are considered essential. 10 years from now, you’d still be using soap, a toothbrush, and in fact all of the FMCG industry. As they say, no global crisis can never put an end to the FMCG industry. Thus, FMCG bets are considered to be the safest bets. With increasing disposable income, the spendings in the sector have increased. One thing that drives this whole industry is the supply chain. India has a stable supply chain and established distribution networks, in rural as well as the urban parts, thus expanding the reach of the FMCG industry.

 

●     Infrastructure

Better infrastructure attracts better foreign direct investment, thus investing in infrastructure never grows old. Due to its availability of raw materials and skilled labor at a low cost, infrastructure in India attracts a lot of growth opportunities. Another factor driving the infrastructure sector and determining the growth, are upcoming government schemes like the Bharatmala project (for building national highways in India) and the ‘’housing for all’’ project.

 

●     Consumer durables

20 years ago, owning a car was a luxury, but as India progressed and the economy started growing, disposable income started flowing in the families and that disposable income is the reason why the consumer durables industry is soaring high. Consumer durables include products like washing machines, air conditioners, cellphones, etc. The growth middle-class population is a very strong driving force behind the industry. Another important factor is the availability of loans at affordable interest rates.

 

Investing in sectors for long term can help you earn a lot of profit. A good idea to invest in diversifying your investments. If you invest in different sectors, your chances of risk get lowered. Other than these sectors, you can also look out for pharmaceutical, services, insurance, non-finacncial institutions, etc.

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