Mutual Fund: What will be the next big theme for wealth creation and growth, know here

Highlights

  • If you invest in mutual funds, then knowledge of the sector is important.
  • Some sectors are showing tremendous growth at the moment.
  • It also includes the housing sector.

MumbaiIt is said that if the investment decision is made at the right place at the right time, then it has many benefits. The biggest advantage of this is that you do not have to repent. Usually it is common among the investors that they always say that if someone had told me about this sector 5 or 10 years ago, I would have invested. So you always have to be cautious while investing.

It is important to know which sector has to be improved
In the world of finance, a lax policy does not work if, in the long term, if the goal is to get more returns than the market, then you should know some things. In this path it is most important that you find out at the very beginning which are the sectors or themes, which are going to improve in the recent past. Historical data shows that if a sector/theme is tracked at the right time, the chances of delivering big returns are increased. If the sector or topic has been out of investors’ radar for a long time and is relegated to history, difficult situations improve significantly.

Growth is visible in the housing sector
Mutual fund distributor Sameer Shah says that the Indian housing sector currently appears to be in a similar situation. The sector has seen an eight-year long decline. Cash flow has almost stopped. But in the last one year, the sector has shown considerable improvement in volumes, pricing, consolidation etc. Say that the balance sheet of real estate developers has recovered from the pressure and has become balanced. Keeping pace with the times, he says, NSE recently launched the Nifty Housing Index, which aims to track the performance of the stock portfolio. These largely represent the housing theme. Based on this index as the benchmark, ICICI Prudential has launched a new fund offering called Housing Opportunities Fund.

urban population will increase
According to Shah, the first factor in its favor is the ever-increasing population of India. With better education and higher income levels, the working population is increasingly shifting towards the urban. The current urbanization rate in India is around 35%, while the global average is 54%. This means that the urban population growth will have to be five times the average population growth to reach the urbanization ratio of 50%. Second, the increase in the number of nuclear families has created a demand for more and more homes. As a result the demand for housing has increased. With this, this sector can be a better sector for investment in the coming times.

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