Intelligent retail investors use the well-liked investment strategy of long-term investing to increase the value of their money. The founder of value investing, Benjamin Graham, described investing intelligence as the ability to value “time in the market” by choosing the best investments for you and avoiding investing based solely on hearsay.
Along with fundamentals and qualitative factors like management quality and efficiency, one must take a long-term view of the financials when looking for the best stocks to invest in India for the long term. For investors, the long term typically refers to more than five years.
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This blog has compiled a list of the top Long Term Investment Stocks for 2022.
Best Stocks to Invest in India for Long Term
The best stocks to invest in right now for the long term are listed below:
| S No. | Long Term Stocks | Industry |
| 1 | Reliance Industries | Multinational Conglomerate |
| 2 | Tata Consultancy Services (TCS) | Information Technology |
| 3 | Infosys | Information Technology |
| 4 | HDFC Bank | Banking |
| 5 | Hindustan Unilever | FMCG |
Factors to Take into Account Before Choosing the Best Stocks to Invest in India for long term:
- A minimum of more than Rs 10,000 crores should be the market capitalization of the stocks.
In simple terms, market capitalization represents the company’s market value. It represents the price at which all of the company’s outstanding shares may be purchased. It is calculated by dividing the number of outstanding shares by the price per share traded on the market. The market cap also fluctuates frequently because the stock price is a moving target.
It reveals the company’s size. Higher m-cap companies are more well-known, have made significant progress, have lower risk levels, and have lower volatility. Therefore, a high market cap is a great way to identify companies and choose the long-term stock to invest in if you want to be guaranteed less volatile returns.
- Three-year profit growth should exceed 10%.
Net profit considers all facets of a company, in contrast to operating profit, which only considers the core business. It also reflects the entire company’s actual profits and considers costs like taxes and interest payments on a debt still owed.
The bottom line, or net profit, appears at the bottom of the profit statement after all costs and expenses have been considered.
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India’s Top Long-Term Stocks: A Performance Review
1. Reliance Industries
One of the best stocks to invest in right now is Reliance Industries Limited, an Indian company that operates in the Oil to Chemicals (02C), Oil and Gas, Retail, Digital Services, and Financial Services segments.
The 52-week high/low is a technical indicator representing the highest and lowest price at which a Reliance Industries stock has traded over that period (roughly one year). As of June 15, 22, Rs. 2,856.15 and Rs. 72,016.25 respectively represent Reliance Industries’ 52-week high and low.
2. Tata Consultancy Services (TCS)
Tata Consultancy Services Limited (TCS), a company based in India that provides information technology (IT) services and digital and business solutions, is one of the safest shares to buy in India.
A technical indicator called the 52-week high/low shows the highest and lowest prices at which a TCS stock traded during that period, roughly equivalent to one year. As of June 15, 22, TCS has a 52-week high of Rs. 4,043.0 and a 52-week low of Rs. 73,132.40.
3. Infosys
Information technology, outsourcing, and next-generation digital services are all business areas for Infosys Limited.
The 52-week high/low is a technical indicator representing the highest and lowest price at which an Infosys stock has traded over a specified period (roughly equivalent to one year). The 52-week high and low for Infosys as of June 15, 22, are Rs. 71,953.90 and Rs. 1,399.25, respectively. It frequently appears on the annual list of safe stocks in India.
4. HDFC Bank
A private sector bank with headquarters in India is HDFC Bank Limited (the Bank). The Bank offers various banking services, including transactional/branch banking for retail customers and commercial and investment banking for wholesale customers.
The 52-week high/low is a technical indicator representing the highest and lowest price at which an HDFC Bank stock has traded over that period (roughly equivalent to one year). As of June 15th, 22, HDFC Bank’s 52-week high and low are Rs. 1,725.00 and Rs. 81,278.30, respectively.
5. Hindustan Unilever
An Indian company called Hindustan Unilever Limited manufactures consumer goods.
A technical indicator, the 52-week high/low represents the highest and lowest price at which a Hindustan Unilever stock traded during that period (roughly one year). Hindustan Unilever’s 52-week high and low are 2,859.30 and 71,901.55 rupees, respectively, as of June 15, 22.
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Additional considerations
- Select a few financials, consider qualitative factors like management caliber, ethics, and CSR initiatives, and evaluate them using data that dates back at least three years.
- Sort businesses according to their market capitalization to identify industry leaders who have proven durable long-term performance.
- Conduct a business and industry analysis to understand industry-specific factors and risks and match your level of risk to the company’s risks.
- Only invest in a business if you know what it does.
Conclusion
The best stocks to invest in India for long term were on this list. Your profits can grow over time as a result of time. If you do not withdraw your returns or interest earned in the middle, your returns will compound multiple times because they will be based on an accumulated amount rather than just your principal.
FAQ
Q. Should we prefer short-term investing or long-term investing?
Ans. Long-term trading is safe so you should go with it.
Q. What do we need to start investing?
Ans. A Demat account.
Q. Who can do investing?
Ans. Any person with a Demat account and a trading account can start investing.
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