- Date : 03/10/2022
- Read: 5 mins
Investments are subject to market risk, but how to choose and make choices while investing. rapidly changing economic markets make it a tough choice to where to invest. For risk free investments, Investors always opt for less volatile sectors that can give good returns in the long run. Commodities, services and goods that are always in demand or whose demands are increasing day by day have always been a good investment option for safe investment
While investing, we all want to invest in risk-free sectors. But, there are no stocks or sectors that are 100% safe. Even the most profitable companies or the top industries of the economy can face a fall in share prices. But If you think of a completely safe investment with no bet to lose money. Then you can't opt for stock market investments.
2022 has been the most volatile year in the economic market, either for the Indian or international markets. But, the Indian market has remained steady and has shown good growth. India has become the 5th largest stock market in the world. It is speculated to expand and grow more till the end of the fiscal year 2022. but even in the Indian markets, not all investment options are safe investment options. Some stocks and sectors are safer than others but are not entirely risk-free. To achieve results for safe investments with high returns in India, we must go through various factors.
Also read: 10 factors that affect Indian share market
The list of sectors or shares for safer investment are:
1. Healthcare and insurance sector: These five components constitute the healthcare and insurance sector; hospitals, diagnostics, pharmaceuticals, medical stores and supplies and medical insurance. Increasing lifestyle diseases, telemedical technology and a rising middle-class population have made the healthcare sector a rapidly growing and profitable investment option.
Since 2015, India's healthcare and insurance sector has become the highest profitable investment industry. For less volatile investment purposes, the companies in this sector are safe investments with high returns in India 2022.
Some of the healthcare sector companies with their last 5years returns are:
- Apollo Hospitals - 296.23%
- Pfizer - 130.27%
- HDFC Life Insurance - 85.55%
Also read: Dipna Pharmachem IPO details
2. IT Sector: Technology is the center point of innovation, especially in the digital and virtual world that we live in. Computers, mobiles, IT, and social networking have become basic amenities of our lives and will continue to grow in the future as we become more networked.
In India, the IT sector is one of the fastest growing sectors. In the last two years, the IT sector's nifty scale has seen 132% growth which seems unreal. India is becoming the second largest online market in the world. The IT tech industry exploded and boomed in the last two years.
For the specific investment in the IT sector shares, you can choose to invest in the companies listed below with their 5years revenue:
- L&T Technology Services - 385.46%
- Infosys - 218.60%
- Tata consultancy services (TCS) - 158.86%
3. FMCG Sector: fast moving consumer goods (FMCG) sector Includes a wide range of daily-use products like hygiene products, tea, coffee and other daily consumption items, cosmetics, soaps, detergents and toiletries, etc. the majority of the goods of FMCG industries are the most purchased products and are put into lesser thought while purchasing.
The industries like ITC, HUL, Nestle, Dabur, Emami, and Parle are the most common Indian industries in the FMCG sector. The products of these industries have been in the market for centuries. There might be varied options to choose from but no replacements. It makes FMCGs the best safe investment option.
FMCG sector companies with their 5 year returns and you can consider for investment are:
- Adani Wilmar Ltd. - 204.91%
- Nestle India Ltd. - 182.64%
- Hindustan Unilever(HUL) - 121.31%
4. Automobile Sector: The Indian automobile sector is Heading into 2023 with a new outlook to reclaim the sales volume. The growth of EV (electronic Vehicle) technology and its advancement has made the automobile sector worth considering for future investment. The government strongly supports the sector with new and favorable policies to witness higher growth.
Global automobile companies are also setting their feet in India to set up production houses in the world's fastest-growing economy. To meet consumer demands, Indian automobile players like Maruti Suzuki, TATA Motors, and Eicher are updating their production houses and are regularly coming up with new models.
Some of the companies with their 5year returns that are worth investing in are:
- Automotive Axles Ltd - 171.32%
- Bajaj Auto - 48%
- Maruti Suzuki India Ltd - 20.06%
5. Renewable Energy Sector: this sector is booming and is becoming the most promising sector for investment. With the motive to reduce carbon emissions to improve environmental conditions, renewable energy resources will be the highest demanding industry. They are the future of the country's economic market and are the best sector to invest in 2022 to get great results in the coming year.
The ministry of power is focused on setting up 175-gigawatt renewable energy installed by the end of 2022. To grow the renewable energy sector, The Renewable Energy Investment Promotion and Facilitation Board is also set up by the Ministry of Power.
Industries with their 5year returns, to opt for share market investments are:
- Adani Power Ltd. - 1175.65%
- Tata Power company Ltd. - 204.95%
- Siemens Ltd. - 124.94%
This was the list of the highest growing sectors and shares of the Indian market. These sectors are the future of the country's economy and growing at a breakneck pace. These sectors are worth considering for long-term investments and a safer bet in stock markets. The share market is volatile; thus, it is riskier and unpredictable. But The best approach to making a risk-free investment is diversification. Allocate your money in small investment amounts in various sectors. Before investing, please keep your eyes open and analyze the stocks and the company's past performance.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.