Why Investing in India’s Manufacturing Sector is a Smart Move
06 Jun 2024
Making The Most of India’s Manufacturing Sector Potential
India’s manufacturing sector is on the cusp of a holistic surge, driven by a potent combination of government initiatives and expanding domestic market. One way to capitalize on this exciting opportunity is by investing in a dedicated fund which further invests in various avenues in the manufacturing theme.
Why Invest in Manufacturing Sector
Government Support:
The government has launched initiatives like Skill India, Atmanirbhar Bharat, and PLI schemes, providing technical and financial support for local manufacturing. Reforms like GST promote transparency and enhance the business environment.
Focus on Infrastructure:
The government’s emphasis on improving overall infrastructure by constructing massive expressways and highways, increasing the railway network, adding more airports and ports is an advantage for the sector.
Demographic Dividend:
India benefits from having a sizable, youthful, educated, and tech-savvy population, which gives the manufacturing sector a competitive edge in terms of pricing.
Though these are important parameters however there are other factors too like the fund managers hypothesis, market dynamics and others that an investor should consider while making any decision. This information just serves as a guide, and individuals should seek advice from a certified financial expert prior to making any investment decision.
Manufacturing Sector performance V/s Board Indices
| Index | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Nifty50TRI | 27% | 17% | 15% | 14% |
| Nifty500TRI | 39% | 21% | 18% | 16% |
| NiftyIndiaManufacturingTRI | 57% | 26% | 23% | 17% |
The Above illustration is for understanding purpose only and should not constitute as investment advise.
Past performance is on guarantee for future returns.
Who Should Invest
Investors who want to participate in India’s Manufacturing growth.
Investors looking for new sectors / themes to diversify their portfolio.
Investors having a time horizon of 3-5 years and beyond.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.
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