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Stocks For Long Term Investment
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Earning money is not enough until you are not able to make your money work for you. Investing your hard-earned money in the right place can actually help you in generating additional income streams and wealth.
Although there are many options, planning a long term investment in the stock market can actually reap a fruitful result and in meeting your financial goals.
Here again, there are different types of investment option in India for short term trading, and long term investment.
On one hand where short term trading can actually help you in reaping good profit, planning a long term can help you in creating wealth.
Also, Warren Buffet rightly says, “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”
So, long term investment can work to meet their investment goals and can actually see your money working for you.
Wondering how!
Well! The answer is simple – by picking the right stocks for long term investment.
Again a question arises, how to pick stocks for long-term investment?
We’ll answer that but let us first understand the term.
Investing in stocks, equity shares, mutual funds, ETFs, and holding it for more than 5 years or more is what long term investment focuses upon.
Since long term investment involves high share market risk and so does the chance of gaining more returns.
Just like any investment method, there are multiple strategies that investors can employ as per their requirements to maximize the profit potential.
Investing Strategies for Stock Market
Long-term investments need patience but are great when looking for more generous benefits. If someone is considering investing in long-term stocks, then there are some basic principles of goal based investing that you should consideer.
Basically, goal based investing in India helps you to minimize the uncertainty by investing regularly depending upon your investment span.
Investing Early
The earlier you start, the better return you can expect. Whenever you are looking to invest your wealth in a long-term stock or any other plan, begin as early as possible.
This will make sure that your stock is getting enough time to mature and therefore yielding better results.
Long Term Investment Risk
“Risk comes from not knowing what you are doing”,-Warren Buffett says.
So investing in long term stocks without a proper plan and strategy can actually lead to loss instead of generating wealth.
No doubt, long term investment is like walking on a tightrope. Therefore, whenever planning to invest in long-term stocks, it is better to reserve some funds in advance.
It will help you just in situations that run out of hand and during emergencies.
How to analyze Stocks for Long Term Investment?
Do not invest in a particular stock because everybody else is doing that. It is always vital that you analyze the stocks yourself and then invest in them.
Long-term investments are a commitment, and therefore, take every step very carefully.
Stock Diversification
Diversify your range. Buying all the stocks or investing only at a single place is like a game of self-harm. Always invest in multiple stocks and ones with different sectors.
Long-term investments are a successful way of securing your funds or, in general, your wealth. That is why you should make a strong strategy for How to buy stocks for long term and secure your future.
Now that we know what to do before investing in long-term stocks let us look at how to choose stocks for long-term investment.
How to Choose Stocks for Long Term Investment?
According to Warren Buffett “Someone’s sitting in the shade today because someone planted a tree a long time ago.”
Now choosing stocks for long term investment revolves around the same thought. What you invest today will add on to your wealth in the future.
But here comes the question of how to begin or say how to pick stocks for long term investment.
In general, many investors fail because they focus on what to buy, but in order to earn the real jewels or returns from the stock market, investors must look for what not to buy.
Whenever planning for long term investment, it is good to focus more on the quality of stocks rather than on the quantity.
So following the right principle and knowledge move ahead in choosing the right stocks for long term investment.
Here you can make the choice simpler by availing the answer of few important questions like:
- Does the company innovate?
- What is the company size?
- Are shares liquid enough?
- What is the ROE of the company?
- What is the kind of stock the company provides?
Only after getting the answer to these questions can you proceed further and compare the date of different companies to pick the best and right stocks for long term investment
Let us now look at some essential points that you should consider before choosing stocks for long-term investment in India.
How to Choose Stocks for Long Term Investment in India?
Long term investments are beneficial and reap great results in the long run. If you are willing to invest in long-term stocks, then you need to pick them wisely.
There are various companies in different sectors that offer good stocks for long term investment. But there are individual boxes that you have to tick before investing for the long-term in a stock.
Investing in a long-term stock is a dedicated commitment, so every step has to be carefully watched.
Do not make losing stocks a burden
Sometimes, even a successful stock faces a downfall, and there is no surety of it bouncing back. What will you do in such cases?
Even if you are committed to that stock for a long time, it is still best to sell it off. The primary purpose of investing in long-term stocks is profit, and when you do not see any profit, you should leave it right there.
Accept only valid information
There are various sources and platforms, giving stock tips. If you want to invest in long-term stocks, you should make sure that you do not think that every piece of advice you get is the only authentic and valid information.
Don’t get carried away for smaller gains
There is a possibility that investors will get carried away, seeing the instant gains in the short-term investment stocks.
The investors of long-term investment stocks often look at the more considerable gains over a more extensive period.
Pick a strategy
It is essential to try out ways to choose the right strategy according to your needs. It is crucial not just to choose the right approach but also to respect it and stick to it.
Since you are looking for long-term investments here, the strategies for short-term goals will not work. Therefore, it is recommended that you test and try and then choose a single strategy for all your long-term investments.
There are various investment strategies available in the market. You can either follow the footsteps of the greatest investors of all time, Warren Buffet and do value investing.
In selecting value investing stocks, the investors look for stocks that seem to have an undermined price.
Other people like investing in IPO, mutual funds, etc., in all, there are various strategies that one could find and follow while investing in long-term stocks.
So, if you are a beginner or want to maximize returns with the least associated risk, then you can go for the IPO investment. Follow the right tacts and IPO investment strategy to get fruitful results.
If you are still confused about which stocks to choose and are an absolute beginner, then StockBasket is the best option.
Wondering what StockBasket is?
StockBasket is an expert-curated ready-made basket of stocks or mini portfolios. These baskets are made as per the investors’ financial needs and by considering the goals, time horizon and risk-appetite of different investors.
Why is StockBasket Best for Long term Investments?
Brokers in the Indian stock market not only tend to offer brokerage services but also helps investors to plan investments and pick the stocks that can reap maximum profit from them.
The hugely popular discount broker Samco has come up with one of the best long term investment products, Stockbasket. It is an ideal investment way that comes up with the package of different stocks offering high returns and minimum risk on investment.
So, if you are a beginner and are worried about choosing stocks for long term investment by doing research and proper monitoring, then fret not!
StockBasket is a product by SAMCO that makes long-term investments smooth and an absolute cakewalk.
StockBasket is just like a hamper consisting of a variety of things. It is a perfect basket consisting of 5 to 15 stocks carefully handpicked and selected by the experts.
StockBasket is easy to use and very convenient. You just have to open/sign in for an account, choose your basket, and invest.
5 Reasons Why You Should Invest With StockBasket
Long term investment is all about blocking your hard-earned money in a stock that may or may not offer you higher returns with time.
Since there is a high risk involved in planning and investing, it is therefore highly recommended to pick the right stocks for long term investment.
Here are the top 5 reasons why you should go for the StockBasket to meet your long term investment goals.
- For all the investors who are new or beginner in the stocks market, they have a Beginners Basket, specially curated for first-time investors.
- StockBasket curates a perfect basket, keeping in mind the financial goals of the investors. StockBasket makes sure that the financial targets meet on time.
- Every stock is picked on the basis of 60+ Stock rating parameters and 2 crore data points.
- StockBasket has a minimum holding period of 5 years letting the Power of Compounding come into play and you enjoy the whopping returns.
- Monitoring the stocks is a tedious process to help you with this StockBasket team monitors your basket portfolio so that you can sleep peacefully
StockBasket completely covers the financial requirements of all kinds of investors. If you are wondering how to choose stocks for long term investment, you can relax and rely on StockBasket.
Conclusion
Long-term investments require patience and commitment. But choosing the right stocks for long term investment is the most vital step. Proper analysis and decision-making processes demand a lot of knowledge.
To start a long-term investment, it is good to have clear objectives and goals. Apart from this, proper planning and implementation is yet another way of getting higher returns on your investment.
A beginner trader or investor always lacks a proper analysis of stocks or sometimes fails to give enough time to pick the right stock.
To streamline this whole process, Samco comes up with the StockBasket, the basket containing valuable stocks offering worthwhile returns in the long run.
Not only the high return, but the product also provides the stocks with the minimum risk, thus keeping your hard-earned money safe and secure.
To get started with the long-term investment with Stock Basket, open a trading and demat account with Samco and login to access the maximum features and benefits.
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