There are around 2000 companies listed on the National Stock Exchange (NSE) and nearly 5000 companies listed on the Bombay Stock Exchange (BSE). Out seeing this vast collection of stocks most investors are confused on identifying which stocks are good long term buys and which are not. To find stocks for long term investment we need to consider a healthy mix of quantitative and qualitative factors.
In this article, you will get to know how to find top Indian stocks to buy for long term investment and the list of best stocks to buy in India for long term investment. You can apply your skills of technical analysis to pick these stocks at the right time and price to maximise the returns in your portfolio.
Invest and Forget Stocks
Must buy for 2-3 years.
Dmart – Target 2450
Nerolac Paints – Target 1200
Hatsun Agro Product – Target 1300
PS – The longer you hold these, the more you earn
The best way to make money from the stock market is to follow these steps :
Step 1 : Identify great companies
Step 2 : Buy these stocks at the time when they are priced low
Step 3 : Sell them when they are priced high
Step 4 : Repeat Steps 2 and 3 again and again until you are rich
You don’t need to do Step 1 as the complete portfolio of the best stocks to buy in India for long term investment is given ahead in this article.
The main factors you should focus on while buying stocks for long term investment are:
- Management Quality
- Business Risk
- Capital Reinvestment & Valuations
- Dividend Consistency
- P/E Ratio
Investing in stocks can be risky. A single good stock might give you extraordinary returns. But if you had put all the money into the wrong stock, you could end up losing all of it. So rather than holding onto a single stock and hoping for its steady appreciation, we need to have multiple stocks to diversify the portfolio and reduce the risk due to any one stock. If one stock in the portfolio falls, another stock rises.
Having nearly 21 stocks in the portfolio will make your portfolio and anything beyond 21 stocks may lead to counter the effect of diversification.
The graph below should make it clear :
List of best stocks to buy in India for long term investment in 2021
HDFC Bank Ltd
Kotak Mahindra Bank Ltd
Hindustan Unilever Ltd