Intelligent retail investors employ long-term investing as a common investment method 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 investments that are best for you and avoiding relying 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 finest stocks to invest in for the long term in India. For investors, long-term often means longer than five years.
The top Long Term Investment Stocks for 2023 are listed on this blog.
Best Stocks to Invest for Long Term in 2023
Here is a list of the best shares to buy for long term–
| S.No. | Long Term Stocks India | 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 Consider Before Choosing the Best Stocks to Buy in India for Long Term 2023
Here are some factors to look at before you invest in stocks for an extended period-
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The Market Capitalization of the Stocks Should be at least More Than Rs 10,000 crores
The market capitalization, in plain English, is the company’s market value. It is the price at which all of the company’s outstanding shares can be purchased. It is determined by dividing the total number of outstanding shares by the market price per share. The market cap is likewise a dynamic quantity, much like the stock price.
It reveals the company’s size. Higher m-cap companies are more well-known, have already advanced to a certain point, and have lower risk levels and less volatility.
Therefore, a big market cap is a great way to identify firms and pick the long-term stock to invest in if you want guaranteed and less variable returns.
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Profit Growth for Three Years Should be More Than 10%
Net profit considers all facets of a company, as contrast to operating profit, which primarily considers the primary activity. It also reflects the true profits of the entire company and includes charges like taxes and interest payments for a debt that is still owed.
The bottom line, or net profit, appears at the bottom of the profit statement after all costs and expenses have been taken into account.
Best Long Term Stocks India: Overview
The following are some of the choices to invest in for a long term:
1) Reliance Industries:
Reliance Industries Limited is an India-based company which operates in the Oil to Chemicals (02C), Oil and Gas, Retail, Digital Services, and Financial Services segments and is one of the best shares to buy for long term.
2) Tata Consultancy Services (TCS)
Tata Consultancy Services Limited (TCS) is an India-based company engaged in providing information technology (IT) services and digital and business solutions. It is one of the safest share to buy in India.
3) Infosys
Infosys Limited is engaged in consulting, technology, outsourcing, and next-generation digital services. It is a top-notch global leader in the digital services and consulting domain.
4) HDFC Bank
HDFC Bank Limited (the Bank) is an India-based private sector bank. The Bank caters to a range of banking services covering commercial and investment banking on the wholesale side and transactional/ branch banking on the retail side.
5) Hindustan Unilever
Hindustan Unilever Limited is an India-based consumer goods company. It is a subsidiary of a British company named Unilever. It is headquartered in Mumbai and is one of the most renowned FMCG companies across the globe. Hence, its shares are often a top choice of investors.
Additional Things to Remember
- Pick a few financials, look at qualitative aspects like management quality, ethics, and CSR activities, and assess them based on historical information over three years or more.
- According to their market cap, filter companies pick leaders from respective industries that have shown proven long-term sustainable performance.
- Align your risk level with the risks of the company. Conduct a business and industry analysis to understand industry-specific factors and risks.
- Invest in a company only if you understand it and what it does.
- If you plan to invest in any of the above-listed or any more stocks, you should consider using a Brokerage Calculator. It will help you compute the brokerage fee that a broker acquires for facilitating trade.
Investing in stocks for the long term requires careful consideration and analysis of various factors. While it is essential to conduct thorough research and consult with financial advisors before making investment decisions, here are a few stocks that show potential for long-term growth in 2023.
- Amazon (NASDAQ: AMZN): As one of the world’s largest e-commerce and cloud computing companies, Amazon continues to dominate various sectors. With its diversified business lines, strong customer base, and innovative strategies, Amazon has the potential to deliver long-term value for investors.
- Alphabet Inc. (NASDAQ: GOOGL): The parent company of Google, Alphabet Inc., is at the forefront of technology and internet-related services. With its dominance in online advertising, strong presence in emerging technologies, and continuous investments in research and development, Alphabet Inc. is positioned to benefit from the digitalization trends in the coming years.
- Microsoft Corporation (NASDAQ: MSFT): Microsoft has successfully transformed itself into a cloud computing powerhouse, with its Azure platform competing directly with Amazon Web Services. Additionally, Microsoft’s strong presence in software, gaming, and artificial intelligence further solidifies its position as a long-term investment option.
- Johnson & Johnson (NYSE: JNJ): Known for its diverse portfolio of healthcare products, Johnson & Johnson remains a reliable choice for long-term investors. The company’s strong brand recognition, global reach, and commitment to innovation in areas such as pharmaceuticals, medical devices, and consumer healthcare make it a stable investment option.
- Visa Inc. (NYSE: V): As a global leader in digital payment solutions, Visa is well-positioned to benefit from the ongoing shift towards cashless transactions. With its extensive network, partnerships, and ongoing technological advancements, Visa is likely to capitalize on the growing demand for digital payment solutions.
Remember, investing in stocks carries inherent risks, and it is crucial to conduct thorough research and consider your own risk tolerance and investment goals before making any decisions.
Conclusion:
The top long-term stocks to purchase in 2023 were on this list. Your returns can compound with time. You compound returns on an accumulated number rather than just your principal if you do not remove your returns or interest earned in the middle; your returns will multiply several times.
We can eliminate volatility and near-term concerns with time. At the end of the first year, if you invested Rs 1,000 and received 10% returns, you would have Rs 1,100. If you let your money grow over time and do not redeem your returns, you will receive returns of Rs. 1,100 the next year.
Do this workout now for a longer period of time and with greater investment. This is due to the fact that any investment’s essence and magic are in the long term.
Disclaimer:
This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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