Retail investors can also take advantage of the boom in the logistics sector.


MumbaiAs soon as the domestic economy reopens after the Corona period, better news is expected. This has been rated by many global and local financial institutions and rating agencies. Our gross domestic product (GDP) is expected to grow by 7% in fiscal 2023, he said. As a non-professional investor, one way to take part in the macroeconomic revival is to invest in the sectors that will benefit the most from strong GDP growth. In this respect, the transportation segment – ​​the original equipment manufacturers (OEMs) and auto parts manufacturers – and the logistics sector are excellent tools for investors to capitalize on the market rally as the economy grows.

Having been bearish for the past few years, these segments are poised to see a sharp rise over the next few years. The best way for retail investors to take advantage of this momentum is through mutual funds by investing in a transportation and logistics thematic fund.

After several years of slow growth until early 2021, the automotive sector is experiencing a strong renaissance and is growing rapidly. As automobiles evolve into passenger cars, trucks (UVs), motorcycles, scooters, cars and commercial vehicles, auto parts manufacturers grow with them. India is rapidly moving towards becoming a middle income country. With rising incomes, more formal jobs and healthy wage growth, the trend to spend on a range of goods, including cars and two-wheelers, is becoming clear. In fact, in urban areas, especially after Covid, the car has become a personal necessity rather than a luxury.

For these reasons, it is clear that there are huge opportunities for long-term returns on investment in transport and logistics. Yes, investors must have investment terms of at least five years. Retail investors can take advantage of this through the current ICICI Prudential NFO, which will close on October 20th. Most of the NFOs launched by ICICI Prudential in the last two years have generated up to 22% revenue. His ESG fund was launched on October 9, 2020 and has generated an annual return of 15.4%. His Quantity Fund also launched in December 2020 and generated a return of 22%. Similarly, investors in the Business Cycle Fund, introduced in January 2021, are up 20.2% and the Flexi Cap Fund is up 14%. It was brought in July 2021.


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