Fastest growing sector in india 2011

With income level seeing a surge in India, middle class is focusing great important to providing quality education to their siblings. Private Equity Investors has already sense this opportunity and rising demand trend has already started funding education projects. India’s private banking giant HDFC has confirmed that Private Equity investment is seeing a tremendous surge since year 2005. Private Equity investment is nearly touching the $190 million market in year 2010. In the year 2005 the level of private equity investment was not more than $20 million.

India has one of the youngest population in the world. This gives pressure on Kindergarten education. Private Equity investment has marked this as their benchmark and has started to invest in Kindergarten till standard XII. This segment has huge prospects in coming next 5 to 10 years. This is the reason why Educational sector has the prospects of becoming the fastest growing sector in years to come. Foreign investment (FII’s) is also showing signs of entering into education sector in a big way in India in year 2011 and beyond.

In India the quality of primary and secondary school education is not as per world’s standards. The number of people who are waiting for quality education and availability of top class education has a great imbalance. This is allowing India to become the best target to feed private equity investment in educational sector.

Educational sector is one of those sectors which is not heavily effected in times of financial crisis like year 2008. The cash flow in education is always assured and schools are not dependent on financing their working capital. This makes the education sector as one the most promising sector of 2011 and beyond.

In Indian parliament there are bills waiting to be approved which will allow big foreign universities to open schools and colleges in India. This is greatly required to uplift the educational standards in India. There are plethora of engineering, medical etc colleges in India but few provide above average education. With big foreign universities coming in, educational standards are set to see a face lift. This will also lift the level of competition for the Indian universities giving direct benefits to Parents and Childrens.

It is our suggestion to investors that they should focus on education sector for next decade at least. Keep track of Private Equity funds flowing in the country. Be sure to also catch if mutual fund is showing interest in this sector. If Mutual Funds investing turns towards educational sector then there can be handsome earnings for investors in years to come.

SECTOR WISE GROWTH FOR LAST ONE YEAR

METALS

AUTO

OIL & GAS

POWER

FMCG

BANK

PSU

REALTY

CAPITAL GOODS

CONSUMER DURABLES

HEALTH CARE

INFORMATION TECH.

TEC

Favorite Sectors of Mutual Fund Managers

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