Affluent Savvy
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Which industry has a great future?

FMCG sector Fast Moving Consumer Goods include products that will always be in demand. With the Indian economy set to grow at 7% per annum, FMCG sector is definitely here to stay and grow. The FMCG sector also has some of the largest and the most reliable names in the economy.

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Introduction

Investors must always be aware of the overall market sentiment regarding the sector that they must invest in. This is because if you know that a certain sector is volatile or stagnant, growing or shrinking etc then it helps in taking better investing decisions. Let’s have a look at the top sectors with a high performance to give you a better understanding.

List of top performing sectors:

Electric Vehicles Sector

A large part of the growth in the automobile sector is driven by companies that are investing heavily in EVs or electric vehicles. This is because the Indian government and private industry are looking to expand electric vehicle penetration to up to 30% of private cars, 70% of commercial cars, 40% of buses and 80% of two and three-wheelers by 2030. An early entrant in this market will accumulate greater expertise and hence capture a greater share of the aforementioned market in the next few years. The market is ideal for those looking for a long-term investment.

The top 5 stocks in this sector would be –

Energy Sector

In recent months, the war in Ukraine has caused a sharp rise in energy prices (oil and natural gas). Moreover, the booming Indian economy, rural electrification drives and PLI schemes for the domestic manufacturing sector have ensured that electricity demand is only going to increase rapidly in the coming years. Therefore Indian companies which produce and export such products are also going to see high profits (because of the price-inelastic nature of the demand for energy in the economy). Special emphasis should be there on those companies which are investing heavily in renewable sources of energy.

The top 5 stocks in this sector would be –

IT Sector

Industry body NASSCOM said in February that the IT sector is growing in revenue at around 15% per annum – it is expected to reach around $350 billion by the end of the financial year 2026-27. The biggest growth is going to come from AI, cloud computing and analytics as well as the growth of associated sectors such as banking and e-commerce.

The top 5 IT sector stocks are –

Pharmaceuticals sector

The pharmaceutical sector has price inelastic demand. The Indian pharmaceutical sector happens to be one of the biggest exporters in the country, supplying generic medicines (and recently, vaccines) to various parts of the world.

The top 5 pharmaceutical stocks are –

Real Estate Sector

India’s economy is rapidly growing as well as urbanising simultaneously. The NHAI has also been building new roads at a rapid pace. Therefore it is expected that real estate prices are going to soar in the coming years in both tier 1 and tier 2 cities.

The top 5 real estate companies are –

FMCG sector

Fast Moving Consumer Goods include products that will always be in demand. With the Indian economy set to grow at 7% per annum, FMCG sector is definitely here to stay and grow. The FMCG sector also has some of the largest and the most reliable names in the economy.

The top 5 stocks in the FMCG sector include –

Conclusion

Understanding the sectoral trends is important as it helps the investor decode the smaller developments in the sector and predict market sentiments accordingly. If you want to check out how such events impact stock prices and take advantage of it, try opening a demat account with a trusted broker. Disclaimer: This blog is exclusively for educational purposes. The securities quoted here are only exemplary and not recommendatory.

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At what age should I be a millionaire?

While experts recommend saving up $1 million by the time you retire, typically around age 67, you might be on track to hit that milestone at a much earlier age. How close are you?

If you're putting away $500 per month, you're on track to become a millionaire in 33 years. Bump those monthly contributions up to $1,000 per month and it will only take you 25 years to reach seven figures. While experts recommend saving up $1 million by the time you retire, typically around age 67, you might be on track to hit that milestone at a much earlier age.

How close are you?

Personal finance blogger Zach of Four Pillar Freedom created a simple chart that breaks down at exactly which age you'll become a millionaire, based on your current age and annual savings rate. Check it out below. Keep in mind that the chart assumes you're starting with zero savings and earning a seven percent rate of return.

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