Investment has always been something attractive to several business owners and individuals in the Indian market. It has high chances of returns in a positive manner, but the loss or risk associated with the same cannot be ignored. In the present times where 2020 was utterly unpredictable, it is advised to invest in aspects that are less volatile or have greater chances of profitable returns.
In the year 2020, the economic sector of India and several other countries turned upside down without any prediction beforehand. It was never expected for a market to fall at this rate altogether, which further led to immense losses. As the condition is not yet stable enough and the future cannot be predicted, one must think wisely and understand every aspect before investing in a sector. Experts and professionals in a similar field advise investing in prominent businesses that have a more significant percentage of positive returns. Taking risks at such a time of difficulties could make things worse.
The sectors that are most likely to give profitable returns in investment
However, there are a few sectors that are most likely to prosper in the future or provide positive returns to those who invest. If considered with extreme understanding and knowledge, one can list down the possible sectors that will give greater returns and lead to profits. A few of such sectors are listed below with the entire explanation because of which one might think to invest. The chances of returns in these sectors are great, but we agree with the possible options of losses.
- The information technology sector
Things have changed due to the development of technology all around the planet. Times like these of the corona pandemic have proven to show us a more fantastic side of what technology can do with all its capabilities and features. Several activities have been shifted entirely to an online mode making things easier and handier. Even if we get rid of the thought of covid-19 from our minds, technology is still a massive part of being used by us in the forms of smartphones, the internet, and much more.
There are new technologies in trends these days, like artificial intelligence, cloud-based computing, machine learning, and many more, which will contribute to growth and better development in the future. The existence of technology has fastened the pace of development in all sectors and is becoming an important and crucial sector in itself. Investment in this sector is possibly never going in vain as this is ever developing and something that the market requires.
- The electricity or the power sector
Electricity and power are used in each household, office, and company no matter what use it is put to. India has seen considerable growth in the demand for power supply in the past few months. It is something that any individual can never avoid all over the country and would always be in existence. The later growth in the power sector can help power generation companies to have a more significant share of margins in the near future.
- The telecom industry
It is said that the tariffs would be reaching heights in the near future without any doubt. Internet data and other telecom services have been in great demand, especially in the covid-19 pandemic time where everything was shifted to an online mode. These services will also be used by the people who are not under the working class as each and every youngster uses mobile phones with data in the present times.
This sector is hardly predicted to go into losses and is an excellent factor to invest in by the companies to gain profits and positive shares in the future. This sector is among the ones with significantly fewer risks involved.
- The mining sector and metals
This is yet another significant sector to invest in as the things produced by this sector are widely used among the industrial areas and companies all around. This sector provides raw material along with several other requirements to all the industries and companies, which creates excellent revenues and returns.
It is an excellent attraction for the investors in India who actually split the sector into two main categories: majors and juniors. According to the investors, the juniors are the ones that involve more risks and are related to resource discovery like oils, minerals, and natural gas. However, the latter or the major sector is the one that is comparatively less volatile and has lesser risks if one decides to invest. It is usually expected to give greater returns and something which is positive in nature.
However, in spite of all this, the sector involves a bit of risk, which might occur due to the ups and downs in commodity prices, political factors, geographical areas, etc.
- The financial sector, including banks
The financial sector in India is expected to see a boost in the next few years due to the conditions that existed in the covid-19 times. The general public is now more focused on investing for the future and preparing to deposit the possible and available savings in the banks, which would later allow more excellent interest rates and other positive aspects in return. They now see these savings as a security for the unpredictable future. It is a significant sector to invest in due to the improved collective efficiency, favorable credit cost, and a considerable capital ratio.
Also, the private banks have proven to attract a more significant number of customers, which further attracts investors to invest in order to see substantial returns and profits in the near future.
- The automobile sector
The automobile sector has also seen growth and experienced a greater demand in the past few months. The demand is also increased due to the safety concerns that individuals now have due to the regulation of social distancing, which is not at all maintained in public transport.
The sales and profits are at peaks during the festivals due to India’s several cultures and ritual beliefs. This is a sector that also has a less volatile rate and is majorly expected to give returns that are positive in nature and profitable to the investors.
- The pharmaceutical sector
This is among the sectors which have improved and boosted their growth in the past few months and years. The existing covid pandemic and other diseases could also be one of the primary reasons for the development of this sector. It is among the topmost developing industries, especially since 2019 when the requirement and demand for medicines and other pharmaceutical items increased at a significant level.
This sector is expected to give higher returns even in the next few years, being sure of the conditions that are presently existing. The prediction for significant profits and higher returns is extremely strong and provides an excellent chance for investors to invest.
- The steel sector
This is one of the Indian sectors which has seen significant growth in the past few years and is expected to do the same in the coming few. The companies in the steel sector have focused towards import substitution and a more excellent promotion to exports in the past few years, which in turn give significant profits. There are several schemes like the PLI which provide a more substantial push to the sector along with a reason for the possible investors to invest.
Losses come with profits: Nothing is predictable or inevitable
These were a few sectors that could possibly give more excellent and positive returns if invested in. Thus it opens up a perfect chance for the investors to put in their investments at such a place that is expected to boost its growth and possibly raise the profits. If understood in the proper manner, these investments could prove to be a boon for all these sectors along with profits to the investors leading to development on all sides.
Though these sectors are less volatile but have their own risks and drawbacks, which must be looked upon before investing or dealing. Let us be sure that none of the above details provide surety that an investor would have positive returns or greater profits but gives a sense of understanding of what could be taken into consideration before thinking of any investment.
Edited by Aishwarya Ingle