The energy sector holds promising prospects for long-term growth, particularly with the government’s increased focus. Investing in energy-focused mutual funds seems reasonable, but caution is advised, given that these funds are thematic and reliant on the cyclical movements within the sector.
Nippon India Growth Fund gave a CAGR return of 25.72 per cent in 5 years, thus letting an investment of ₹one lakh to grow to ₹3.14 lakh. Likewise, it would have grown to ₹7.08 lakh if the same investment were invested for one decade.
Investing in mutual funds operating in India s infrastructure sector can be a prudent long-term wealth growth strategy. These funds invest in communication networks, transportation systems, and utilities, offering diversification and potential growth opportunities.
Infrastructure sector funds can be rewarding, but they have risks like sector-specific risks, cyclical risks, and concentration risks. Investors should consider their risk appetite and do thorough research before investing.
As we step into 2024, the Indian stock market unfolds a captivating terrain for novice investors, with the mutual fund sector providing a diverse range of prospects for wealth generation.