Best sectors to invest in 2024 - which will make you wealthy


  Investors, motivated by the results of their investments in the past fiscal year, are prepared to devote a significant gear percentage of their savings to capital instruments in the forthcoming years. They are also motivated to invest in the growing industries in India. But it is tough to see and invest your money in all sectors. I am here to draw your attention to the best sectors to invest in 2024. India is now the fastest growing economy in the world and it is necessary to invest in the growing sectors of India.


Best sectors to invest in 2024

BEST SECTORS TO INVEST 

  1. Gold Jewellery Sector
  2. Banking & Finance Sector
  3. Hospital Business
  4. Hotel Business
  5. Wealth Management
  6. Pharma
  7. Renewable Energy
  8. FMCG
  9. Technology & AI

1. Gold Jewellery

The market is shifting from unorganized to organized retailers. Organized have grown at 20% CAGR between FY17 and FY23. In India 2 types of jewellery are traded, namely Standard Gold Jewellery and Studded Jewellery. Market share of jewelry as per region: north 20%, east 15%, west 25% and south 40%. For wedding-related wear 60%, daily wear 30% and for fashion wear 10% market share. Titan (Tanishq) is the market leader in this segment. other jewellery stocks are Kalyan, Senco Gold, Rajesh Export, PC Jewellers, Thanga Mayil Jewellers, Vaibhav Global, etc.

2. Banking and Finance

BFSI & Healthcare are 2 sectors in India which are trading at average valuations and are witnessing continued improvement in finances. In FY23, the microfinance industry saw growth in portfolio outstanding as well as improvement in portfolio quality when compared with  FY 22. Both big banks and small finance companies are doing great in their work.

3. Hospital Sector

For the FY 2023-24, the Ministry of Health and Family Welfare has been granted a budget allocation of Rs. 89155 cr. This reflects a significant increase of 13% compared to the revised estimates for the previous fiscal year 22-23. Expanding healthcare facilities in tier 2 and 3 cities. Some of the stocks are Max Healthcare, Narayana Health, Rainbow Children's Hospital, etc.


4. Hotel Sector


The Indian hotel market has significant growth opportunities and is poised to contribute $1,504 billion to the country’s overall GDP by 2047, from $65 billion in 2022.With a total area of 3,287,263 sq. km extending from the snow-covered Himalayan heights to the tropical rain forests of the south, India has a rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. This provides a significant opportunity to fully exploit the potential of the tourism sector.Revenue in the hotel market is projected to reach US$9.13bn in 2024. Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.41%, resulting in a projected market volume of US$11.27bn by 2028. Some of the stocks are Oberoi hotels, Lemon tree, EIH ltd, ITC , etc.

5. Wealth Management

The wealth management industry in India is expected to grow at a healthy rate over the next five years, with a focus on serving ultra-high net worth individuals (UHNIs), high net worth individuals (HNIs), mass affluent, and retail investors. The wealth management market in India is growing and presents a huge opportunity for both domestic and foreign players. However, the competitive landscape is only becoming more intense with fintech players posing bigger threats to the traditional players with their product, pricing, and digital differentiation. Due to the strength of the world’s equity markets, the Wealth Management market has seen unprecedented growth in recent decades, especially in the United States which currently leads and holds the helm. Although global markets have entered an era of greater uncertainty from past and new forces taking hold, the future still presents multiple opportunities for those dynamic enough to exploit current trends in the industry. Some of the stocks are Angel One, 5PAISA, AB Capital, etc.

6. Pharma

The global pandemic has underscored the importance of health and wеllnеss, triggеring a shift in consumer behavior. In 2024, the health and wеllnеss sector will be a part of a lifestyle that еncompassеs fitnеss, nutrition, mental well-being, and pеrsonalizеd hеalthcarе.Ayushman Bharat, a program that intends to offer health insurance to more than 100 million people, is one of several efforts the Indian government has made to improve the healthcare industry. Also, the government has raised the healthcare budget, creating investment opportunities and better healthcare services.


7. Renewable Energy

By 2030, India wants to have 450 GW of renewable energy capacity, comprising 5 GW of small hydropower, 10 GW of biofuels, 280 GW of solar power, and 140 GW of wind power. With India's renewable energy industry expanding quickly in recent years, the nation has made tremendous progress toward meeting this objective. The Indian government is supporting the use of additional renewable energy sources, such as bioenergy and small hydropower, in addition to solar and wind power. The nation has considerable potential for bioenergy, with an estimated 25 GW potential from only agricultural waste. Top stocks are Tata Power, Suzlon, NTPC, etc.


8. FMCG

Fast-Moving Consumer Goods (FMCG) have seen significant growth in India over the past several years due to reasons including rising earnings, shifting lifestyles, and increased urbanization. The industry offers goods, including packaged food and drinks, toiletries, and cleaning supplies.


9. Technology & AI

In 2024, the fusion of technology and artificial intelligence (AI) is expected to reshape industries at their core. This is a fundamental shift that offers unprеcеdеntеd opportunities for those ready to embrace thе digital rеvolution. According to the International Data Corporation’s latest report, India’s AI market is likely to reach US$ 7.8 billion by 2025 at a compound annual growth rate (CAGR) of 20.2%, from a market value of US$ 3.1 billion in 2020. India’s growing semiconductor industry will be the backbone of the Indian AI market and by 2025, the Indian AI market will be worth $ 7.8 bn. 60% of AI’s Gross Value Added (GVA) in India’s GDP by 2025 is expected to be driven by four end-user sectors – Industrials & Automotive, Healthcare, Retail, and CPG. BFSI and Agri-tech are also currently emerging as important application areas for AI. Not only AI but also IOT, ML, Blockchain, Fintech, etc are also coming here. LTTS, TATA Elxsi, Tanla, Saksoft, etc are working in this field.

Conclusion

  It makes sense for an intelligent investor to invest in India’s growing sectors for long-term investments. However, there is an important lesson to be learned here: not every growing industry will provide incredible returns. Therefore, diversifying is the best approach to selecting the best sectors in India for investment.

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