With 2024 year coming to a close, investors are looking to find out which sector will bring more returns. While there has been an impressive expansion in areas to invest, the three biggest ones of mutual funds, real estate, and gold remain the top choices.
So what are experts saying about each sector and its potential in 2025?
Mutual Funds
Most experts noticed that Indian equity markets remained stable and profitable for most of 2024 despite situations that could have led to a loss. A Business Today report listed them as being “sticky inflation, weaker-than-expected Q2FY25 earnings, general elections outcome, FII outflows and global geopolitical uncertainty.”
Rajesh Bhatia, Chief Investment Officer – of ITI AMC seems to have a positive outlook for the coming year said, “Indian equities are expected to perform strongly in the coming year. In the short term, though, slowing economic growth, high starting valuations, and weak earnings-per-share revisions could keep markets rangebound. We believe that sectors like private banks, IT, digital commerce, capital goods and pharma may have a clearer path to stronger earnings and are expected to perform well.”
Narinder Wadhwa, Managing Director and CEO, of SKI Capital, said, “Indian markets could remain volatile in early 2025 but are expected to rally in the second half, especially in large-cap and quality mid-cap stocks. Sector rotation will play a key role, making the identification of emerging sectors crucial.”
Feroze Azeez, Deputy CEO of Anand Rathi Wealth Limited, also seconded the sentiment, saying, “For FY 25, the market outlook is positive, and we believe that the market is fairly valued with no major froth. Investors should pick funds across diversified categories of mutual funds while keeping 55% in large-cap and the rest in mid- and small-cap categories.”
Rishabh Goel, Managing Director of Tailwind Financial Services, said, “We recommend focusing on diversified equity funds with a higher allocation to large-cap stocks. This approach balances stability and growth, especially as valuations in the broader market remain elevated amidst growth concerns following Q2 results.”
Vivek Sharma, Investment Head at Estee Advisors, spoke about the exceptional year that the mutual fund industry saw in 2024, “The mutual fund industry has had an exceptional run in 2024, with total inflows into equity mutual funds crossing ₹3.5 lakh crore and AUM increasing by nearly 50%, driven by a combination of robust inflows and capital appreciation.”
Real Estate
Real estate is certainly being considered among some of the key sectors to invest in 2025 for high returns.
Abhinav R. Jain, co-founder and chief financial officer of AdCounty Media as per a Mint report said, “Cities will experience high growth in real estate, particularly with sustainable urban development, as more cities seek to satisfy stringent environmental regulations. Investing in green energy such as wind, solar, and hydrogen has emerged as essential pillars for an environment free of carbon emissions.”
CA Jeevan Jagetiya, Director – JJ IPO Advisors Pvt Ltd also commented, “The real estate sector has transformed with Real Estate Investment Trusts (REITs) gaining traction. Key players like Embassy Office Parks and Mindspace now manage 114.5 million square feet, accounting for 11.9% of India’s office market, driven by growing demand from GCCs and domestic firms.”
Read More: Aswath Damodaran Discusses If Swiggy’s IPO Is A Good Investment In Podcast
Gold
Deepak Ramaraju, Senior Fund Manager, Shriram AMC speaking about gold investment said, “Both gold and silver have gained ~30% over the last one-year period. Global uncertainties including the US election led to a rally in gold as it is considered a safe haven. However, post Trump winning the election in the US, gold has corrected in the last one-month period. After this rally, gold is expected to remain rangebound in 2025.”
Each sector saw some highs and lows in the year and is expected to witness the same in the coming year too. So depending on what an investor is looking to gain from their investment, should one make their decision?
Real estate is more advantageous for those looking to generate passive income with a regular cash flow. Gold, however, is very easy to liquidate since it can be bought and sold on global markets without much hassle and in a short amount of time too.
Real estate on the other hand can take months to be sold and even then follows complex processes that include many legal sides to it.
Gold’s drawback is that it can have volatile pricing further affected by market speculation and geopolitical events as per a Business Today report. Whereas, real estate values tend to remain stable for longer periods.
Mutual funds or stocks while bringing bigger risk with them due to market volatility can also result in bigger returns and high growth potential.
Overall, most experts advise multi-asset allocation funds and having diversified investment portfolios instead of putting all eggs in just one basket.
Shrinivas Khanolkar, Head of Products, Marketing & Corporate Communication at Mirae Asset Investment Managers, said, “In a volatile market, multi-asset allocation funds are a wiser choice.”
He added, “Between 2000 – 2024, equities generated double-digit returns, and gold wasn’t far behind in INR terms. Multi-asset funds, which allocate money across equity, debt, money market instruments, and even Gold and Silver ETFs, can help investors maximize returns based on prevailing market conditions. With potential surprises or bouts of volatility in 2025, making multi-asset funds a part of the core portfolio could be a wiser choice.”
Image Credits: Google Images
Sources: Livemint, The Business Standard, Business Today
Find the blogger: @chirali_08
This post is tagged under: gold investment 2025 india, mutual fund investment 2025 india, real estate investment 2025 india, investment, investment 2025, gold, mutual funds, real estate, indian real estate, investment in india
Disclaimer: We do not hold any right, or copyright over any of the images used, these have been taken from Google. In case of credits or removal, the owner may kindly mail us.
Other Recommendations:
Why Is Camellias The Number One Address To Have In India Right Now?
