Intended to bring maximum returns over a longer time period over 10 years, long term investments are often considered an effective way to gain profit. Contrary to the short term investments which ensure the flow of money in a shorter time period, long term investments require commitment and patience through the market fluctuation. Preferred by many business leaders, long term investments are less prone to risks and therefore attract many investors to reap a reward. However, due to the fluctuations of the market, the future still remains unpredictable. It is always advisable to do thorough research before going for investments. The major factors which decide the fluctuations in an economy are money flow, global volatility, government policies, and many more. The sectors such as mining, textiles, realty, and utility, which were thriving earlier, are growing at a slower pace currently. There are certain domains that are currently growing and are expected to revive back even if after the economic downfall.
Taking into account the study of the market and the predictions about upcoming economic stability, the sectors mentioned below are suitable for long term investments:
- Information Technology: The IT sector has always been a yielding sector and has proven beneficial for many investors. Due to the initiation of ‘Digital India’ by the govt. It is expected to reach major heights in the upcoming days. The companies known especially in this sector for their signature brand values are TCS, Wipro, Infosys, and Tech Mahindra.
- Pharmaceuticals: Indian pharmaceutical companies invest much in R&D and gain remarkable profits. Like the IT sector, the govt. of India is also taking obligatory steps for upgrading and promoting the pharma sector. Therefore it is safe to say that, pharmaceuticals can be the next big option for long term investments. Some significant names of this sector are Glenmark Pharma, Aurobindo Pharma, Lupin, and Sun Pharma.
- Infrastructure: A developing country like ours is in a constant requirement to strengthen its infrastructural development to take its place among the other dominating countries of the world. The growth of infrastructures is fastest almost every day, building roads, flyovers, towers, and buildings are being constructed. So, the infrastructure domain can be considered as one of the prominent options for long term investments. To name a few major players of this sector are GVK Infra, L&T, and Adani Ports.
- Housing Finance Companies: Currently, Housing Finance Companies or NBFCs (Non-Banking Finance Companies) are one of the fastest-growing sectors, playing a crucial role in the development of the country. They have been performing really well since the past few years and are considered to be one of the ideal choices for long term investments. Some of the major names of this sector are DHFL, LIC Housing Finance, and HDFC.
- Automobiles: It is estimated that the world will run on electric automobiles by the next decade. India is also not lagging behind in this sector and taking major initiations to level-up its automobiles sector. An industry prone to technology and scientific innovations, the automobiles sector is one of the best options for long term investments. Some of the key players of the industry are TVS Motors, Tata Motors, Maruti Suzuki, Bajaj Auto, and M&M.
Not every sector which is booming currently will remain there. The market is dynamic and changes every now and then. Therefore it is always recommended by the market intellectuals that rather than investing money in a single sector, it is always better to invest in different domains. Even if a particular sector goes down, there still lies a chance to revive it all back from the other investments.