Curious about next big investment trend? Experts point to fintech, green tech, and EVs

Investment trend 2024: Are you exploring strategic investment options in 2024? The financial realm is buzzing with anticipation as three key sectors, Fintech, green tech, and electric vehicles (EVs), are poised to experience a surge in momentum, according to experts. Investors are advised to closely monitor these industries and capitalise on the growth prospects they offer.

"The next decade appears to belong to fintech, green tech, and electric vehicles, offering a compelling narrative for investors to align their portfolios with these burgeoning trends. As with any investment strategy, a thorough understanding of each segment's potential is crucial, enabling individuals to make informed decisions that align with their financial goals and risk tolerance," said Prateek Toshniwal, angel investor and financial advisor.

"Diversification of investment portfolios is key, and investors can allocate their funds through various channels such as exchange-traded funds, company stocks, or mutual funds," he added.

Profit paths in fintech

Fintech is set to take the spotlight in 2024, with a notable increase in consolidations within the industry. The relentless push towards digitalisation and the growing popularity of digital banking and payment processes continue to make Fintech a good investment area. Investors are keenly observing the sector's evolution as the wave of technological growth extends to India, where AI capabilities are expected to attract $881 million in investments by the end of 2024.

Notable fintech companies listed in India include HDFC AMC, Bajaj Finance, CAMS, CDSL, and KFin Technologies. HDFC AMC is recognised for its expertise in asset management, while Bajaj Finance remains a player in financial services. CAMS specialises in mutual fund services, and CDSL provides depository services. KFin Technologies contributes to the technological advancements in financial services. These companies offer diverse opportunities for investors in India's evolving fintech sector, reflecting the ongoing growth and innovation within the industry.

Capitalising on EV trends

The electric vehicles sector is experiencing substantial momentum, having nearly doubled in size in 2023. Forecasts indicate a robust 30 per cent to 40 per cent year-on-year (YoY) growth in 2024, outpacing the single-digit growth observed in the overall passenger vehicle space. Global emphasis on sustainability is driving the shift towards electric vehicles, particularly in India. "The government's focus on phasing out conventional fuel-driven vehicles and achieving a 30 per cent market share for EVs by 2030 positions the EV sector as a compelling $200 billion investment opportunity, encompassing electric vehicles, advanced charging infrastructure, and EV batteries," said Agam Gupta, Executive Director, Share India Fincap.

In India's electric vehicle (EV) sector, there are several key players that investors may find important to monitor. Reliance Industries holds a notable position, leveraging its diversified interests, including a growing emphasis on EV ventures. TVS Motor Company and Tata Motors also draw attention, reflecting their focus on advancing sustainable mobility solutions. Mahindra & Mahindra, a major automotive player, contributes substantially to shaping the country's EV market. Indian Oil Corporation is actively involved in the development of the EV sector. Lastly, Hindalco Industries through its participation in the aluminum industry, aligns with the increasing demand for lightweight materials in the EV market. As India navigates the transition to electric mobility, these stocks present opportunities for investors seeking to track the industry's dynamics.

Green tech fuels investment flow

Green Tech sector has gained significant prominence, driven by a renewed focus on clean and green energy. A recent report anticipates the addition of 3.7 million jobs by the Fiscal Year 2024-25, propelling demand for cleantech stocks and attracting substantial investment. A joint report by EY and CII projects an influx of over $250 billion in the evolving renewable sector, emphasising the growth potential in green energy solutions and sustainable transportation. Increased capital flow, coupled with a heightened sense of environmental sustainability, is expected to further accelerate the growth of the Green Tech sector.

Several Indian companies are actively advancing the green energy sector. Zodiac Energy Ltd emphasises sustainable solutions, while KP ENERGY Ltd contributes to India's shift to cleaner sources. Borosil Renewables Ltd is recognised for its solar technology advancements, and Websol Energy System Ltd focuses on solar power harnessing. NTPC Ltd, a major player in the power sector, is expanding its green energy initiatives. Adani Green Energy, part of the Adani Group, plays a key role in the renewable energy landscape. JSW Energy Ltd and Inox Wind Energy Ltd are notable contributors to the wind energy sector. BF Utilities, Reliance New Energy, and Tata Power Solar Systems Ltd lead innovations in clean energy. Sterling & Wilson Ltd and Orient Green Power are also promoting eco-friendly energy solutions.

"As environmental, social, and governance (ESG) considerations take center stage, these new-age sectors become attractive investment opportunities for conscientious investors," Toshniwal added.