Portfolio Changes When Lifestyle Change

Portfolio Changes When Lifestyle Change

Shares of Lifestyle theme will be suitable for investors who are ready to take high risk and are patient.

The high level of industrialization, the growth of the service industry, better job opportunities, etc. are some elements which have increased the expendable income of people. This has paved the way for new lifestyles and consumption changes. A style of buying branded items to showcase higher class and standards have developed among consumers, especially youngsters. This has opened up the gates to the fashion-lifestyle market in India.

It is expected that in the next five years Indian fashion-lifestyle industry will achieve a growth of 12% approximately. Currently, the fashion-lifestyle industry has an approximate annual turnover of Rs 2,21,000 crore, which is expected to rise up to Rs 3,94,000 crore within the next five years. The textile industry, which is 57.2% of the lifestyle industry, is expecting a growth of 59.9% by 2020.

Company

Symbol

Investor Ratio

Future Retail Ltd

FRETAIL

31.24%

Future Consumer Ltd

FCONSUMER

24.56%

Aditya Birla Fashion & Retail

ABFRL

15.42%

Voltas Ltd

VOLTAS

15.06%

Bajaj Finserv

BAJAJFINSV

13.72%

The companies in the organized retail sector are reviving themselves from the problems which they faced from different reasons. Indian retail businesses which were having issues to stand up straight for the last 15-20 years has now slowly started to giving good performances by reporting a better profit. Most of the major companies in this sector are undergoing some rapid changes and this has opened up new opportunities to share investors.

Investors can consider five selected shares in this sector. These shares will be suitable for investors who are ready to take high risk and have good patience.

Currently, the profitability ratios of these companies, who are decreasing their debts, are getting better. The stable increase in the income is giving a hint that these companies have good potential.

Voltas and Bajaj Finserv are included in the lifestyle theme by avoiding companies like Indian Terrain and Kavya. Future Retail, Future Consumer, Aditya Birla Fashion & Retail, etc are the other shares that are included in the portfolios based on the lifestyle theme.