India has a great future growth story unfolding in front of us. A 6.5% per annum growth after inflation is a realistic assumption. While it is difficult to predict any one sector, the following are reasonable numbers and assumptions:
- Automobile manufacturing: 2 wheeler units sold so far in 2018 is more than 2017! At 2 crore plus number, this is huge and growing!
- Infrastructure: Construction will have to keep pace with a growing economy. Cement sales in 2018 have hit a high.
- Financial Services: To pick just one number, the number of house loans outstanding is touching 10 lakh crores! There are so many other verticals here such as wealth management.
- Consumption: A population hungry for the nice things in life will increase consumption of food products, white goods etc.
Here are some opportunity areas which again tells us why the above might actually come true:
- India’s electricity production at 1.2 trillion kwh is 20% that of China
- Natural gas production at 31.2 bn cu m is one fourth that of China
- Our ports are horribly inadequate. Just 5% that of CHina’s containerised cargo capacity.
Given this, one can be optimistic of India’s growth! Investing in the Indian economy via equity mutual funds is a great idea to build growth.
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