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The Union Budget 2024-25, by Finance Minister Nirmala Sitharaman, mixes major reforms with smaller changes. While the stock market might drop at first, it usually recovers over time. Investors should keep an eye on the market and adjust their strategies to take advantage of new opportunities.
This year's budget aims to balance spending and manage the fiscal deficit. It focuses on defense, railways, infrastructure, and green energy to help India reach a $7 trillion economy by 2030. The budget also plans to boost social spending, regenerate the rural economy, and create jobs.
The budget allocates Rs. 1.48 lakh crore for employment, education, and skill development, supporting India's long-term growth goals for 2047. This blog provides an overview of the key sectors and themes that will benefit from the announcements made in Budget 2024.
Top Sectors to Watch for Long Term Investment Gains
1. Infrastructure
Infrastructure, including housing, water supply, sanitation, urban growth, and energy transition, is given top priority in Budget 2024. The industry is anticipated to gain a great deal from this focus. These are the Best Mutual Funds to think about if you want to invest in ones that take advantage of these chances.
| Fund Name | Launch Date | AUM (Crore) | 3 Months- Returns |
|---|---|---|---|
| ICICI Prudential Infrastructure Fund | 31-08-2005 | 5,693.78 | 39.08% |
| Nippon India Power & Infrastructure Fund | 01-05-2004 | 6,671.44 | 38.51% |
| HDFC Infrastructure Fund | 10-03-2008 | 2,298.16 | 36.52% |
2. Manufacturing Sector
In order to boost the Manufacturing Sector, the budget may include measures like tax breaks and subsidies. By expanding demand and boosting profit margins, these actions may increase the share values of manufacturing businesses. This might be viewed by investors as an opportunity to diversify and profit from the industry's expansion. The best mutual funds for this industry are listed below.
| Fund Name | Launch Date | AUM (Crore) | 3 Months - Returns |
|---|---|---|---|
| Axis India Manufacturing | 21-12-2023 | 5,193.03 | 17.07% |
| ICICI Prudential Manufacturing Fund | 11-10-2018 | 5,960 | 14.03% |
| Quant Manufacturing Fund | 05-08-2023 | 786.81 | 14.07% |
3. Power Sector
Investments in Renewable Energy and new technologies, like advanced thermal power plants and small nuclear reactors, will likely lead to big growth in the power sector. The NDA Government’s focus on infrastructure and defense has always helped the sector, and this should continue. Here are some top mutual funds to consider for this sector that catch your interest.
| Fund Name | Launch Date | AUM (Crore) | 3 Months - Returns |
|---|---|---|---|
| DSP Natural Resources And New Energy | 03-01-2013 | 1,214 | 6.89% |
| Tata Resources & Energy | 28-12-2015 | 716.59 | 10.07% |
| SBI Energy Opportunities | 26-02-2024 | 8,833.32 | 9.49% |
4. Consumption:
The budget focuses on boosting the buying power of middle and lower-income groups, which will likely increase demand for everyday goods and services. Improved rural infrastructure and support for small businesses will raise incomes and spending, benefiting the FMCG sector look at the best mutual funds that’s made for you
| Fund Name | Launch Date | AUM (Crore) | 3 Months - Returns |
|---|---|---|---|
| ICICI Prudential Bharat Consumption | 09-04-2019 | 2,433.87 | 12.24% |
| Nippon India Consumption | 30-09-2004 | 1,056.5 | 15.35% |
| Mirae Asset Great Consumer | 29-03-2011 | 3,749.22 | 15.72% |
Final Statement
The Union Budget 2024-25 highlights growth opportunities in key sectors like infrastructure, manufacturing, power, and consumption. Investors can benefit from these trends by investing in mutual funds related to these sectors. Using SIP (Systematic Investment Plan) allows for regular, disciplined investing and helps take advantage of market changes over time. Consider top mutual funds and SIPs to capitalize on the potential growth driven by the budget.
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