Best Sector for Long-term Investment

Long-term investment may mean different thing for different people, but for me and for the purpose of this article, let’s say we are looking at an investment horizon of 8-10 years.

If I ask you to make an investment for this long a period, i.e., invest and forget, and then I ask you to pick up just one sector to bet all your money on stocks in that sector which sector would that be?

There is no straight answer but with logical reasoning and some analysis we can make a reasonable prediction and for me that best sector would be Healthcare.

Below are five reasons why this sector offers an excellent long-term investment opportunity for you.

1. Huge technological advancements

Over the past few years there have been huge technological advancements in the area of drug research. This has led to better drugs coming out that are also cost effective. There are more and more clinical studies being undertaken, with rising research budgets. Over the next few years we can expect many drug approvals especially from the Indian players.

2. High growth rate

The Investment Commission of India came out with some numbers on the state of healthcare industry. The market size of hospitals and nursing homes will grow at 20% every year. Medical equipment will grow at 15%; clinical lab diagnostics are growing at 30%. Another booming business is imaging diagnostics which currently stands at Rs.4,500 crore, representing a 30% growth.

3. Life factors

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