How investors can get benefited from Government Reforms in India?

How investors can be get benefitted with Govt Reforms in IndiaHow investors can get benefited from Government Reforms in India?

Indian Government Reforms are taking a shape now. It could be reshaping Infrastructure in various cities in India or building smart cities. While these would lead to good growth story in India, as an investor you might be wondering where to invest in India and how you may get benefitted with such Government Reforms in India.

What are Government Reforms that are in progress now?

While Indian Government has taken several reforms, some of them are key for growth in India. They are reshaping crumbling Infrastructure in several Cities, Setting-up Industrial corridors, Building Smart Cities, building Express Highways and Super-Fast Bullet Trains. Make in India campaign has been kicked-off very well, however we are yet to see results in coming years. Recently Government has announced reform plan of PSU Banks and to infuse Rs 70,000 Crores and to revamp PSU Banks. While these reforms would take time and complete between medium term to long term, it would provide business opportunities to several companies in India. As an investor you may look invest in such companies which are benefitted with these Government Reforms.

Also Read: Which are the best stocks that would get benefitted with 1 Lakh Crore Smart City Initiative?

How investors can get benefited from Government Reforms in India?

There are several ways where you can invest in such companies that are getting benefitted with Government Reforms in India.

a) You can directly invest in companies that are getting benefitted with such Govt reforms. However identifying such growth stocks is a big challenge. You may need to do some home work here.

b) You can invest through some of the top mutual funds in India. There are more than 1000 mutual fund schemes, hence one need to identify good mutual fund schemes which taps the Indian growth story.

c) Another way is to invest in innovative products like New India Portfolio (NIP) from New India Portfolio is a financial product which consists of 4 mutual funds in various segments.  A diversified mutual fund which is investing in premium blue chip companies. A mid-cap fund is chosen which has a consistent track record of over 5 years and which identifies potential in quality mid-cap companies which are out-performing broader markets. Diversified mutual funds invest in multiple sectors like Infra, finance, agriculture, social development and resources and those expected to benefit from the revival in cyclical sectors. Long term debt fund, which is aimed to ride the interest rally when rates fall and with an addition of income fund, would gain from falling interest rates. You should invest in such portfolios through SIP's every month for long term so that you can see your money growing over a period of time.

You should note that Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs. 

Readers, what is your view on investing in stocks that would get benefitted from these Government reforms in India? Are there any better ways to invest in such stocks?

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How investors can get benefited from Government Reforms in India


  • Syed

    Dear Suresh,

    I’m married & have a kid I’d like to invest in any high returns Ethical MF for a period of 15 years from the below

    Tata Ethical Fund Regular-Dividend or Growth
    Taurus Ethical Fund Regular-Bonus
    Taurus Ethical Fund Regular-Dividend
    Taurus Ethical Fund Regular-Growth

    Kindly suggest what should be my strategy for long term investment of 5K per month ??

    • Good to hear about you. Tata Ethical fund is good. Taurus is average performer. There are only a few funds available in ethical fund segment. Let me do some more analysis and come back

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