Top 10 Best Stocks for Long Term Investment in India 19


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Warren buffet quotes are really a great inspiration to learn stock market. “Warren Buffet says, you should invest in stock market as today is the last day and stock market is going to be closed for next five years”. If you have limited time and you intend to invest in high yield savings account and you have a patient to forget investment for five years then you will be on top of the returns than any other investment asset class. Here I will guide you “Best Stocks for Long Term Investment” in Indian stock market.

You can assume that after reading this article you will be capable to analysis best share to buy for long term and earn investment returns around 900% to 1000% returns in 10 years then that is amazing because you have successfully achieved to gain 25% to 26% returns per year which can be classified as a best retirement plan.


Best Stocks for Long Term to Invest in India.

Let’s take top ten best stocks for long term from India’s best performing sector and evaluate 10 years returns based on the past performance. Here we will see the list of best stocks to invest in India for long term.


Sr. StocksSectors20052015% Returns
1Lupin Ltd.PHARMA          65.00     1,893.00     2,912.31
2Sun Pharmaceutical Industries Ltd.PHARMA          53.00         871.00     1,643.40
Average Return of Pharma Sector for Last 10 years is 2277%
3Asian Paints Ltd.CONSUMER GOODS          40.00         705.00     1,762.50
4I T C Ltd.CONSUMER GOODS          52.00         311.00        598.08
Average Return of Consumer Goods Sector for Last 10 years is 1180%
5Tata Consultancy Services Ltd.IT        315.00     2,557.00        811.75
6HCL Technologies Ltd.IT          91.00         945.00     1,038.46
Average Return of Information Technolgies Sector for Last 10 years is 925%
7Bosch Ltd.AUTOMOBILE     2,130.00   22,870.00     1,073.71
8Tata Motors Ltd.AUTOMOBILE          80.00         397.00        496.25
Average Return of Automobile Sector for Last 10 years is 785%
9HDFC Bank Ltd.FINANCIAL SERVICES        107.00     1,068.00        998.13
10State Bank of IndiaFINANCIAL SERVICES          62.00         268.00        432.26
Average Return of Financial Services Sector for 10 years is 715%
Average Returns of 10 Best Stocks held in your Portfolio (In Percentage) :       1,176.68

* Average Returns of the sectors are based on the two best stocks mentioned.

Wiki Finance pedia - e-learning course on Investment Wikipedia Chapter - Top 10 Best Stocks for Long Term Investment in IndiaLooking at the past performance of top stocks with top sectors, It conclude to me that if I diversify invest into sectors like Pharma, Automobile, IT, Financial Services and Consumer Good, I can make a handsome of money which is well enough money for retirement.


Investing in stocks is one of the easiest ways of making handsome money for retirement with low risk in long run. Always have the habit of diversifying investment in different sectors so that you do not miss the good returns for other sectors. Assume that you wish to invest Rs.10,00,000/- in year 2016, Let’s see how you can make more money by diversify investment based on the above past performance.

Year – 2016Percent ReturnsYear – 2026
SectorsAllocationAmount InvestedExpectedReturn Amount
PHARMA40%             4,00,000.002277%         91,08,000.00
CONSUMER GOODS20%             2,00,000.001180%         23,60,000.00
INFORMATION TECHNOLOGIES15%             1,50,000.00925%         13,87,500.00
AUTOMOBILE15%             1,50,000.00785%         11,77,500.00
FINANCIAL SERVICES10%             1,00,000.00715%           7,15,000.00
Total :           10,00,000.00       1,47,48,000.00

 

Investment Amount in year 2016Percent ReturnsInvestment Returns in 2026
                                          10,00,000.00 1475%                                  1,47,50,000.00
Investment Amount in year 2026Percent ReturnsInvestment Returns in 2036
                                      1,47,50,000.00 1475%                                21,75,62,500.00

Above calculation results are quite amazing:


Since every investors has a different choice. Some investors are more interested in best dividend stocks for long term income rather than best shares to invest. Its everyone perception to choose the best investment way according to your financial planning. Here I would like to share Top 10 – Best Dividend stocks to buy for long term in India. This article will also guide you towards difference between investing in best stocks and investing in best dividend stocks. I hope reading this would help you lot in your investment planning.

Conclusion:

In this we have seen which are the best Indian stocks for long term investment. Year 2016, 2017 and 2018 are the best years for investment in Indian stock market as India’s market is growing at the faster pace. You may also have noticed that inspite of global slowdown, you may see the stock market is rising and the Indian stocks are giving good returns year on year. If you intend to buy best stocks with above sector and above allocation method, then you can expect to earn returns upto 1475% in next 10 years which is descent. If you plan to retire in next 20 years then expect to earn returns upto 21,756% which is really awesome and top of the world and you can live your life happily for couple of centuries post retirement.


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19 thoughts on “Top 10 Best Stocks for Long Term Investment in India

  • Prakash

    Very informative and encouraging to invest in stocks. I would like to know to achieve above whether one need to open a DEMAT account only? (or Demat + Trading account?)
    Thanking you in anticipation

    • WikiFinancepedia Team

      Demat account only holds shares / stocks / securities or any other financial instruments in electronic form. You need to have trading account to buy or sell stocks. Through trading account you can either perform intraday trading or delivery trading. When you are undergo delivery trading, your stocks or shares are held in demat account.

        • Wikifinancepedia Team

          Exactly. You will need to have trading account along with demat account for delivery base trading in stock market.

        • Crissy

          Pretty component of content. I simply stumbled upon your weblog and in accession capital to assert that I acquire in fact loved your blog posts. Any way I will be subscribing to your feeds and will meet soon!

  • Indranil Chakraborty

    Very informative, I have a query though. Currently, Lupin Ltd. in pharma sector is already at 1492. So, is it recommended to further invest in the same as we see major returns are already generated. This query implies to usually all those stocks which are already touching the targets as forecasted by the financial institutions. Eg. Yes Bank. Please advice if it is ok to invest further into these stocks- Lupin/Yes Bank etc.

    • WikiFinancepedia Team

      Thanks for your feedback. All the financial institutions uses historical data for predicting future returns. Ups and downs are the part of the financial markets but in the end what you are getting after 10 years matters. If you consider last 10 years, then we have seem lots of market swings but still stocks achieve to give good returns. Since this companies are huge and making profit year on year, so you should not worry during financial crisis. You should feel happy and invest further for long term returns.

  • Debanjan

    I want to buy infosys at the rate 970/- per share. Please advice if it is ok to invest in this time or invest after the price will further decreses. Is there any probability to price will tend to below 950?

    • WikiFinancepedia Team

      When you are looking forward for stocks to buy then you should consider some of the important points. Firstly fundamental conditions of economic. (for example: Due to US presidential election its obviously that market may hugely turn into bullish or bearish, it is not recommended to invest during such situations). Secondly fundamental aspects of sector (for example: Due to rise in dollar price, IT industry are struggle for profits. Even this is not the right time for investment in IT sector). And lastly when fundamental aspects clue towards positive outlook. One should start investment in smaller lots on every fall of stock rise greater than 3 percentage. I hope this would assist you always when evaluation or buying any stocks from financial markets.

  • Sekhar

    Dear Sir,

    I’m new to invest my saving in Stock, but I was made investment in one stock when I was working in that company i.e.,L&T Finance, i was invested in 1531 shares at Rs.50/each in the year 2010. after that i was not made any savings, recently i started small savings through RD and SIPs (Rs.5k -RD & Rs.7K SIPs). Now I want to invest in stock, I’m interested to follow as per your suggestion in terms of sector allocation through diversification.
    Objective is to create wealth and children education.
    I planning to invest in following stocks 1) LUPIN – Rs20k, SUN Pharma-Rs.10K, Aurobind-Rs.10K, Sun Pharma Adv Res-Rs.5K
    2) ITC-Rs.10K, Asian Paints-Rs.10K, IFB-Rs.5K.
    3) HCL-Rs.10K ,
    4) Exide-Rs.10K, TATA Motors-Rs.10K, Ashok Leyland-Rs.5k
    5) Axis Bank- Rs.10k, HDFC LTD-10k, BoB-Rs.5k, SBI-Rs10k, PNB-Rs.5k
    Plz suggest me ur options on my plan.
    Note: which option of brokerage is batter {full service% / discounted (Fixed)}

    Name: Sekhar, 33yrs, Annual income Rs.5.00Lac, Pvt employee.
    Wife is not working, one child age <one year.

    • WikiFinancepedia Team

      Great! If you are looking for long term benefits then your plan is admirable. Investing in large and midcap stocks are always preferable with long run perspective. Regarding best Indian broker I would recommend to go with Zerodha. We have savored and felt ultimate with rest to all the areas whether its pricing or services. You can surely give it a try. Thanks for writing us 🙂

  • Anand Kishore

    Hi Team, I appreciate all the informative responses in the blog. My name is Anand and I am 33. I am the only earning person, and we have a new born child. As of now I only have 2 traditional insurance policies of 5 lakhs sum assured each. I want to invest in stocks. My question is how do we know if its a good time to invest in any stock after deciding the stock. For example if a stock is already at its best incresed price looking at its last 5 yrs trend, how can we assess if the stock still has capability to give similar returns that it did in past 5 yrs. Ex: Maruti stock. This has grown tremendously in last 4,5 yrs. How do I invest in this and know if the stock will give same returns in the future.

    • WikiFinancepedia Team

      Best past performance of stocks shows the strength of the share which means it gives the indication to buy a stock in stock market. There is 80% probability that it will continue as per past data but for the rest 20% of probability you have to built your own strategy. For example: Stop-loss is the best and well-known strategy to protect investors capital once you buy the stock. Hope this information would have helped you!

  • Nithin

    Dear sir, my self nithin am 29 year old I want to invest in stock market in sip mode in equity stocks upto 15 years, So please suggest some of good equity stocks to invest.

    • WikiFinancepedia Team

      There are many good stocks. I would suggest you to check out the past 10 years performance and then you can stay invested into it. Just to highlight on one question arises, does past performance guarantee future performance? Answer is “No” but you can apply varieties to tricks to protect your capital investment in-case it fails to act like past performance. The best strategy is to keep stop-loss at 15% – 20% from the highest level of stock. You can selloff the stocks if it hits the stop-loss. I hope this can help you to grow faster.

  • Dr Vikas tripathi

    Sir I m new to stock market and do not know about trading .i had invested 25000 per month sip in different mutual funds since last 1 year for 3 years.
    I want to invest in shares market for long term investment means for period of 5 to 10 years for attaining future goals like child marriage etc. as I got some salary arrears
    I want to invest 1 to 2 lakh as lumsum stat and also may invest in lumsum in different periods also for long term horizon.
    Kindly suggest me different stocks to buy for investment in different sectors for 10 year period for above amount.i have Demat account with icicle bank.
    My age is 46 years and my salary at present is 1.75 lakh per month with loan liability of 25000/= per month.
    I m in government job with service balance of 15 years.

    • WikiFinancepedia Team

      After reading your post Vikas, I guess you are not much aware of financial markets. I would suggest you to continue with SIP investment. In-case of excess funds, you can also invest small-mid cap funds or diversified funds. Even these funds are capable of giving you good returns in long term, also peace of mind when fund managers will take care in-case any stock turns into bad performance. Meanwhile I will suggest you to read some books related to stock analysis and strategies which will help you to figure it out by yourself regarding how to set stop-loss incase of stock doesn’t reflect the past performance in the mirror look. Hope this secret would be useful to you!

  • Chakra

    Hi Sir,
    After along time I saw a really good article regarding investing in stocks. I will be retiring in 20yrs and hence looking for investing 10L today for wealth generation after retirement. I saw the beak-ups in the article for different sector you have suggested. Can you please suggest which other sectors do you think can give me annualized 10% return. Reason I am asking is I am not comfortable about IT and Financial sector.

    Thanks & Regards

    • WikiFinancepedia Team

      Thanks for your feedback Chakra 🙂
      Its absolutely fine, each person has different perceptions. If you are not comfortable with sector-based funds then you should check returns for small-mid cap funds / large cap funds / diversified funds. As per our research & study, we can surely say that this funds have the capability to become a best asset for your portfolio when considering returns with long term goals.