Education Stocks

India has the largest population in the world in the age bracket of 5-24 years, indicating a huge opportunity in the education sector. India holds an important place in the global education industry, with one of the largest networks of higher education institutions in the world. In FY20, the education sector in India was estimated to be worth US$ 117 billion, and it is likely to reach US$ 225 billion by FY25.

The Indian edtech market size is likely to reach US$ 30 billion by 2031, from US$ 700-800 million in 2021. In addition, the Indian online education sector is growing rapidly, with growth of US$ 2.28 billion expected during 2021-2025, at a CAGR of ~20%. Moreover, the higher education institutes in India are focusing on creating online programmes due to the increasing demand from consumers.

The Government of India has taken initiatives like the National Accreditation Regulatory Authority Bill for Higher Education and the Foreign Educational Institutions Bill. In addition, the government has allowed 100% FDI (automatic route) in the education sector in India.

Investing in the education sector can be a rewarding venture, but like any investment, it comes with its own set of challenges and considerations. Here are some important factors to keep in mind before investing in the education sector:

• Regulatory Environment: Education is often heavily regulated, and the regulatory environment can vary significantly from one region to another. Be sure to understand the local and national regulations that may impact your investment.
• Demographics and Market Demand: Consider the demographics of the target market. Is there a growing population of students? What is the demand for education services? Analyse trends and projections to ensure there is a sustainable market for your investment.
• Technology and Innovation: Technology is changing the education landscape rapidly. Consider how technological advancements may affect the traditional education model. Online learning, AI, and other innovations can impact the sector significantly.
• Competition Analysis: Understand the competitive landscape. Are there other institutions providing similar services? What is their market share and reputation? Differentiate your offering to stand out in the market.

To invest in sector stocks via Angel One, follow these steps:

• Log in to your Angel One account.
• Click on the search icon and look for your desired education sector stock.
• Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
• To complete your transaction, click on the ‘Buy’ button.

You can track the status of the purchase from the ‘Positions’ section in the ‘Orders’ module. Once the stock is delivered, you can track its gains and losses from your ‘Portfolio.’