Invest in stocks It is a good way to increase wealth in the long term. However, not all stocks are created equal. Certain sectors or industries have greater potential for high returns than others.
According to Peter Garnry, head of equity strategy, if you are looking for stocks that have the potential to deliver annualized returns of more than 20%, there are certain industries that can achieve this goal. Saxo Market.
Which industries can provide more than 20% return?
Peter Garnry has identified industries where he expects an annualized return rate of more than 20%. He explained that stocks in these industries are betting on the future, innovation and productivity growth, so they have great long-term potential.
So which industries is he talking about? The following is the complete list:
- Carbon capture
- semiconductor
- Sports fashion
- The fuel cell
- Gene editing
- E-commerce in Asia
- cloud computing
- Energy-saving booster pump
- social media
- Copper mine
- Treat hearing loss
- Shipping
- Vegetable plastic
- Electronic trading platform
- 3D printing
- gamble
- Enterprise Software Application
- robot
- Fertility
Although these departments offer great hope, they also present a certain degree of risk. This is why they only account for 30% of Garnry’s overall portfolio.
The rest of Garnry’s portfolio is a basket of diversified assets with lower risk. More specifically, the return on the assets it contains is designed to match the average market return of approximately 6.5%.
This makes the long-term return of Garnry’s entire portfolio expected to reach about 10.6%, which is a pretty good return according to the standards of most investment experts.
Although investors can undoubtedly learn a lot from Garry’s strategy, he does not want them to blindly imitate him. His suggestion is for investors to analyze their own situation and divide their portfolios with a ratio that matches their personal risk tolerance.
What else do investors need to know?
Although some industries offer great hope and potential, remember that investment is inherently risky. There is no guarantee of positive returns. Your investment may fluctuate, and there is always the risk that the final return will be lower than the investment.
This is why you should always conduct your own research and stick to an investment strategy that matches your goals, preferences and risk tolerance.
Although past performance does not necessarily predict future results, history has always shown that investors are more likely to get the best returns over a long period of time. Those investors who persevere often get handsome returns.
When investing in some industries recommended by Garnry, you may want to consider using stocks and Shared ISAIf you are not familiar with stocks and stock ISA, it basically provides a tax-efficient investment method. When you invest through this ISA, you do not need to pay income tax or capital gains tax on the interest or return generated by your funds.
If you are interested in learning more, please check out some of our comparisons The highest-rated stocks and stock ISA providers in England.
At the same time, if you are completely new to the investment world, our Investment guide Have all the information you need to get started.
Please note that tax treatment depends on your personal circumstances and may change in the future. The content in this article is for reference only. It is not intended and does not constitute any form of tax advice. Readers are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.
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About the author
Sean is a personal finance writer who is passionate about helping others improve their financial knowledge and make better financial decisions. He covers everything from credit cards to savings to investment.
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