A portfolio based on Green Economy…!!
An investor always applies different ways to build her portfolio. Some follow the traditional approach (i.e. Putting money in a well-known asset), while others build on their own convention or strategy. But investing in responsible ways require all the factors such as environmental, social and governance to be taken into consideration to better manage risk and generate long term returns.
Green economy is a hot topic in the world as every country is facing the impact of climate change. India too is making a transition towards a greener economy. High speed and clean air are the future of India. The Government of India has already highlighted two key areas i.e. Infrastructure and transportation. NITI Aayog has set a target of full electric mobility by 2030. This will reduce the burden of petrol and diesel, which may improve our environment and decrease dependence on imports.
High speed trains and Electric vehicles are also in the prime agenda of the government for the connectivity between various Indian states. It will be key deciding factors in advancing towards a green economy. It consumes less energy and emit fewer greenhouse gases. The system is cost efficient and environmentally friendly. The shift will give an opportunity for the investor to look for those stocks, which are likely to offer better returns in the future. But the most common question that comes into their mind, where one can invest? Let’s look at the list of those companies which are likely to get benefits from this bullet train and electrical vehicle push according to economic times:
- Bharat Heavy Electricals: BHEL is likely to get a major role in the first bullet train project between Mumbai and Ahmedabad. The company received a huge boost after it was announced that BHEL will manufacture rolling stone for the bullet train.
- Ashok Leyland: The first set of electric vehicles manufactured by Hinduja Group flagship Ashok Leyland would be rolled out in January 2019. The Chennai based heavy commercial vehicle launched the first ‘Made in India ‘electric bus “Circuit “.
- Graphite India: Graphite is mainly used in electric batteries. So, Investor should keep an eye on this industry. Graphite India is one of the big names in this industry.
- Battery Makers: They are likely to get a push for this massive shift towards electric vehicles. Battery producers like Eveready and Amara Raja Batteries may also benefit from this shift towards electric vehicles.
- Nalco and Hindalco: Aluminium is widely used in the electric vehicle industry, because they are light in weight. Nalco (National Aluminium Company Limited) and Hindalco are one of the biggest names in this industry in India.
- Maruti Suzuki: It is one of the leaders in the automobile industry. Right now, their management is quite bullish about introducing an electric vehicle by 2020. Recently, it’s signed an MOU with Toyota to produce electric vehicles.
- Mahindra and Mahindra: It is the first auto player in the country who has successfully launched an electrical vehicle popularly known as Reva or Mahindra e20.
An investor should always keep looking for the information in the market regarding innovation and government policy. Then, she can change her portfolio depending upon the relevant information after proper analysis.
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