A recent study has revealed that the IT sector is the best bet if one is looking to invest, with an average return on investment (ROI) of 18.1%.
The consumer discretionary sector, which trails in second place, offers a slightly lower average return of 15.3%. On the other end, the communication services sector offers a measly average return of 8.4%.
InvestinGoal.com conducted the study, where it reviewed various industry sectors to see where investors can get the most returns. The analysis evaluated the regularity, trustworthiness, and average ROI of all sectors within the S&P 500 index.
The IT sector, which involves the production, research, or distribution of tech-based goods and services, led the charts with an 18.1% average ROI from 2010 to 2022.
However, it was not all smooth sailing though, with the lowest return dipping to -28.2% in 2013, while peaking at 50.3% in 2019.
The sector’s brightest stars last year were Advanced Micro Devices, Lam Research, and KLA, boasting growth rates of 153%, 117%, and 100% respectively.
Close on the heels of the IT sector, the consumer discretionary sector occupies the second spot. This sector, which includes businesses selling products and services considered non-essential, posted an average return of 15.3%.
The healthcare sector, known for medical services and healthcare product companies, comes in third, with a 13.4% average return.
Meanwhile, the industrials sector, home to companies involved in manufacturing, construction, and resource extraction, claimed fourth place with a 13.2% average return.
Rounding out the top five is the financial sector, host to banks, insurance companies, and investment firms, with an average return of 12.3%.
However, not all sectors fared as well. The communication services sector ranked lowest in terms of average ROI from 2010 to 2022, with 8.4%. The energy sector did not fare much, coming in second-second with a return of 10.2%, despite posting the highest return of 65.7% in 2022.
Filippo Ucchino, CEO of InvestinGoal.com, acknowledged the IT sector as a rewarding investment option, attributing its success to continuous innovation and tech developments.
According to Ucchino, the rise of artificial intelligence (AI) promises an exciting future for the stock market. AI-powered systems can analyze vast amounts of data, spot trends, and create predictive models, giving investors a competitive edge in strategizing their investments.
Source: Pro Pakistani