Stocks To Invest For Long Term In India
Long-term investing is a popular investment method used by astute retail investors to expand their funds. Benjamin Graham, the pioneer of value investing, defined investing intelligence as “someone who does not try to time the market but values the time in the market” by selecting investment options that best suit you and not investing based on hearsay.
When looking for the finest companies to buy in India for the long term, financials must be considered alongside fundamentals and qualitative characteristics such as management quality and efficiency. For investors, long term usually means more than 5 years.
We have compiled a list of the best Long Term Investment Stocks for 2022 in this blog.
Considerations Before Choosing the Best Stocks to Buy in India for the Long Term 2022
- Stocks should have a market capitalization of at least Rs 10,000 crores.
Simply explained, the market cap represents the company’s market value. It is the price at which you can purchase all of the company’s outstanding shares. It is computed by multiplying the number of outstanding shares by the market price of each share. Because the stock price is a moving target, the market cap fluctuates as well.
It indicates the size of the company. More prominent companies with larger m-caps have already reached a certain stage and are less volatile with lower risk levels. As a result, for guaranteed and less fluctuating profits, a high market cap is a useful metric for identifying firms and selecting the long-term stock to invest in.
- Profit growth should be greater than 10% in the last three years.
While operating profit focuses solely on the main business, net profit considers all areas of a corporation. It also accounts for charges such as taxes and interest expenses on outstanding debt, and it reflects the overall business’s true profitability.
The net profit appears at the bottom of the profit statement after accounting for all costs and expenses, and is thus referred to as the bottom line.
Top 5 Best Long Term Stocks In India
Infosys Limited provides consultancy, technology, outsourced services, and next-generation digital services.
The 52-week high/low is the highest and lowest price at which an Infosys stock has traded in that time period (about one year) and is used as a technical indicator. As of 15 June ’22, Infosys’ 52-week high and low are Rs.71,953.90 and Rs.1,399.25, respectively. It frequently appears on the list of safe stocks to purchase in India.
2) Reliance Industries
Reliance Industries Limited is an Indian corporation that engages in the Oil to Chemicals (02C), Oil and Gas, Retail, Digital Services, and Financial Services industries and is one of the greatest long-term investments.
The 52-week high/low price is the highest and lowest price at which a Reliance Industries stock has traded over that time period (about one year) and is used as a technical indicator. As of 15 June 22, Reliance Industries’ 52-week high and low are Rs.2,856.15 and Rs.72,016.25, respectively.
3) HDFC Bank
HDFC Bank Limited (the Bank) is a private sector bank located in India. The bank provides a wide range of banking services, including commercial and investment banking on the wholesale side and transactional/branches banking on the retail side.
The 52-week high/low is the highest and lowest price at which an HDFC Bank stock has traded in that time period (about one year) and is used as a technical indicator. As of 15 June ’22, HDFC Bank’s 52-week high and low are Rs.1,725.00 and Rs.81,278.30, respectively.
4) Tata Consultancy Services (TCS)
Tata Consultancy Services Limited (TCS) is an Indian corporation that provides information technology (IT) services, as well as digital and business solutions. It is one of the safest stocks to invest in India.
The 52-week high/low price of a TCS stock is the highest and lowest price at which it has traded during that time period (about one year) and is considered a technical indicator. TCS’s 52-week high and low as of 15 Jun 22 are Rs.4,043.00 and Rs.73,132.40.
5) Hindustan Unilever
Hindustan Unilever Limited is a consumer goods corporation established in India.
The 52-week high/low price is the highest and lowest price at which a Hindustan Unilever stock has traded over that time period (about one year) and is used as a technical indicator. As of 15 June 22, Hindustan Unilever’s 52-week high and low are Rs.2,859.30 and Rs.71,901.55, respectively.
|Long Term Stocks In India||Industry|
|Reliance Industries||Multinational Conglomerate|
|Tata Consultancy Services (TCS)||Information Technology|
Thing You Must Know Before Start Investing
Starting to invest can be challenging if you lack guidance or experience. Understanding how each investment opportunity works, as well as your personal financial goals, risk tolerance, and budgeting abilities, are all important things to consider before making an investment selection. Decisions you make now can have a significant impact on your financial future, so it’s critical that you get them right. Keep in mind who you are and why you are investing in the first place.
Investing means putting something at risk (money, time, effort, etc.) in exchange for a larger reward or benefit in the future. Of course, starting to invest for the first time can be intimidating. You may be concerned about minor flaws in your approach, fearful of losing your investment, overwhelmed by all of the possibilities, or unsure of what to know before you begin investing. But don’t worry, you’re not alone in facing these issues.
Before you start investing, you need first examine your financial status. You should think about your risk tolerance, financial goals, and how much money you’re willing to put in stocks. Don’t make snap decisions. Be wise and learn more about investing to avoid making a costly mistake that could have major effects in your life.
In summary, you should only begin investing if you are ready to put in the time and effort necessary to learn how to buy stocks wisely. Remember that past performance is no guarantee of future results, so don’t let anyone’s stellar year raise your expectations unreasonably. That being said, just because your financial adviser isn’t eager to teach you everything there is to know about investing doesn’t imply you aren’t capable. So do what’s best for you and make sure that any method you adopt is appropriately supported by your investment objectives and personal circumstances.