How to classify the industry (Growth, Cyclical, Defensive) manage your risk with proper diversification.

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 Want to invest in the Stock Market but am confused about which INDUSTRY  should I invest in???

This is for you !

Industries basically work as per the Economy's (Expansion/Contraction)

There are 4 types of industries.

1. Growth Industry : 

  • New Start-up Stage in Industry Life Cycle
  • Solid Earning Figures
  • Risky Stock High Return.

 

2. Cyclical Industry:

  • Growth is dependent on Expansion and Contraction Of economy.
  • Include those that produce durable goods or heavy equipment.
  • People spend more when they have good income. E.g.. Airline

 

3. Defensive Industry:

  • Food Processing Industry.
  • Provides necessities for consumers withstand recession and depression.
  • E.g.. FMCG

 

4. Cyclic Growth Industry:

  • Both characteristics of Cyclical and Growth Industries.
  • Change in technology and intro of new models help them resume growth.
  • E.g.. Automobile.

 

Everyone wants to beat the benchmark. It can be Nifty 50, Nifty Mid Cap or any other INDEX.

 So attached video will help you to understand INDUSTRY for better decision making. What should be the optimum portfolio at the cycle of the economy whether it is contracting or expanding. 


 
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