The IT sector is the best sector to invest in with an average return of investment of 18.1 percent, according to a new assessment. The consumer discretionary sector comes in second with 15.3percent. In contrast, the worst sector to invest in is communication services with 8.4 percent average return.
The study was conducted by InvestinGoal.com. The organisation analysed the consistency, reliability, and average returns of all sectors, relating to the U.S. investment landscape. The outcome has been provided to Digital Journal for review.
For the IT sector, coming top, this sector comprises the category of stocks relating to the research, development, or distribution of technologically based goods and services. Moreover, the minimum return in the last decade was found to be minus 28.2 percent in 2013, while the maximum was 50.3 percent in 2019.
With the consumer discretionary sector, this includes businesses that sell non-essential products and services that consumers may avoid without any major consequences to their well-being. The maximum return was 43.1 percent in 2013.
The top ten is:
| Best sectors to invest in based on average returns from 2010 to 2022 | ||||
| Sector | Average Return on Investment | Min Return on Investment | Max Return on Investment | Ranking |
| IT | 18.1% | -28.2% | 50.3% | 1 |
| Consumer discretionary | 15.3% | -37.0% | 43.1% | 2 |
| Healthcare | 13.4% | -2.7% | 41.5% | 3 |
| Industrials | 13.2% | -13.3% | 40.7% | 4 |
| Financials | 12.3% | -17.1% | 35.6% | 5 |
| Real Estate | 12.2% | -26.1% | 46.2% | 6 |
| Consumer staples | 11.9% | -8.4% | 27.6% | 7 |
| Utilities | 11.0% | -4.8% | 29.0% | 8 |
| Materials | 10.6% | -14.7% | 27.3% | 9 |
| Energy | 10.2% | -33.7% | 65.7% | 10 |
| Communication services | 8.4% | -39.9% | 32.7% | 11 |
The healthcare sector is third with an average return of 13.4 percent. It includes businesses engaged in providing medical services, producing medical devices or medications, offering medical insurance, or aiding in the overall delivery of healthcare to individuals.
Further down on the list, the industrials sector comes fourth with 13.2 percent average returns. The top five closes with the financial sector, which includes firms and institutions that provide financial services to commercial and retail customers, with an average return of 12.3 percent.
On the other side of the list, the communication services sector is the worst to invest in based solely on average returns from 2010 to 2022, which has been 8.4 percent and the energy sector is second to last on the list with a return of only 10.2 percent.
