Investing in the stock market can build your wealth over time. You have to approach investment with a long-term mindset. One must also recognize the advantages of holding stocks for a long period.
Choosing the right stocks ex best PSU Stocks in India for long-term investment allows investors to weather short-term market volatility and benefit from the power of compounding returns. In this blog, we’ll discuss strategies for selecting long-term stocks and highlight some of the best shares to consider for lasting growth.
What are Long-Term Investment Stocks?
Long-term investment stocks are shares of companies with strong fundamentals and potential for future growth. Unlike short-term stocks, which are sold quickly for immediate profit, on other-hand long-term stocks are acquired to benefit from the company’s sustained growth and solid business foundations.
This strategy involves buying and holding stocks that focus on the company’s future prospects and overall stability.
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Top 10 Long-Term Stocks to Buy in 2024
Building a solid foundation for your investment portfolio involves focusing on long-term investment stocks for 2024. With that in mind, here are some stocks that are well-suited for long-term investment based on these criteria .
| Company Name | Industry | Market Cap (₹ Cr) | Stock Price (₹) | 1-Year Return (%) | 3-Year Return (%) | 5-Year Return (%) |
| Bajaj Finance Ltd | Consumer Finance | ₹4,48,641.51 | ₹6,598.15 | 19.28 | 26.55 | 23.55 |
| Titan Company Ltd | Textiles, Apparel & Luxury Goods | ₹3,28,263 | ₹3,559.15 | 23.76 | 20.33 | 31.72 |
| Varun Beverages Ltd | Beverages | ₹1,66,364 | ₹1,347.15 | 18.42 | 26.88 | 59.96 |
| Cholamandalam Investment and Finance Company Ltd | Financials | ₹99,434 | ₹1,157.05 | 18.68 | 18.71 | 40.01 |
| Tube Investments of India Ltd | Consumer Discretionary | ₹75,379 | ₹3,598.25 | 18.53 | 24.82 | 62.35 |
| SRF Ltd | Materials | ₹68,921 | ₹2,283.75 | 21.38 | 21.24 | 41.00 |
| Solar Industries India Ltd | Materials | ₹58,432 | ₹6,731.25 | 23.04 | 29.25 | 46.45 |
| Persistent Systems Ltd | Information Technology | ₹63,398 | ₹8,642 | 19.01 | 21.71 | 70.20 |
| Tata Elxsi Ltd | Information Technology | ₹47,362 | ₹7,721.8 | 33.61 | 17.62 | 53.88 |
| PI Industries Ltd | Materials | ₹51,157 | ₹3,314.45 | 17.97 | 23.29 | 31.82 |
Disclaimer: Please note that the above list is for information purposes only, and we are not promoting or advising you to buy any socks. Please do your own research or consult your financial advisor before investing.
This data is from 19th January, 2024.
How to Pick Investment Stocks for the Long Term
While choosing the ideal shares to buy for the long term, it’s crucial to consider a lot of factors. Here are some of the points we can consider:
- Company Financials: Research for companies with strong financials, also who have a healthy balance sheet, cash flow, and solid potential in future for growth.
- Management Team: A powerful management team that has a good history of success can ensure the company is suitable for long-term investment.
- Competitive Advantage: Companies with a competitive advantage, like a strong brand, unique product, or proprietary technology.
- Market Trends: Search for companies well-positioned to capitalize on market trends, such as the transition towards renewable energy or the expansion of e-commerce.
Diversification plays a vital role in every investment plan, particularly when acquiring shares for long-term holdings. It entails distributing investments across different asset classes to mitigate risk.
Through diversification, you decrease vulnerability to the risks. Furthermore, investors need to grasp their risk tolerance to attain their financial objectives effectively.
Best Long-Term Investment Shares: An Overview
Here are some companies you might consider for long-term investment:
- Bajaj Finance Ltd: A leading non-banking financial company (NBFC) with 73 million customers and ₹270,050 crore (US$34 billion) in assets under management. It ranks second in the Reserve Bank of India’s 2023 NBFC list.
- Titan Company Ltd: An Indian luxury fashion accessories manufacturer specializing in jewelry, watches, and eyewear. Part of the Tata Group, it operates under brands like Tanishq, Titan Eyeplus, and Fastrack.
- Varun Beverages Ltd: The world’s second-largest PepsiCo franchisee (outside the US), it operates in 27 Indian states, 7 Union Territories, and 5 international countries, with 37 manufacturing facilities globally.
- Cholamandalam Investment & Finance Company Ltd: Offers a range of financial services, including vehicle finance, home loans, and wealth management, managing assets worth over Rs 112,782 Crore across 1191 branches.
- Tube Investments of India Ltd: Specializes in manufacturing and financial services, formed from a demerger in 2017, and has since grown to include various businesses.
- SRF Ltd: A chemical multi-business entity producing industrial and specialty intermediates, with operations in India and abroad, leading in sectors like Technical Textiles, Chemicals, and Packaging Films.
- Solar Industries India Ltd: Produces industrial explosives and military ammunition, with 34 manufacturing facilities in India and a presence in over 65 countries.
- Persistent Systems Ltd: A Digital Engineering and Enterprise Modernization partner offering software product development and deployment services.
- Tata Elxsi Ltd: Provides design and technology services across Automotive, Broadcast, Communications, Healthcare, and Transportation sectors, and is part of the Tata Group.
- PI Industries Ltd: A leading agri-sciences company with advanced manufacturing and R&D facilities in Gujarat and Udaipur, serving domestic and international markets.
Conclusion
Investing in long-term stocks can be a rewarding strategy for those seeking steady returns. The stocks highlighted here span various industries, offering opportunities to benefit from India’s growth story and the compounding effects of long-term investment.
However, thorough research is essential, along with diversifying your portfolio and aligning your investments with your risk tolerance and financial goals. Long-term investing requires patience and discipline, as short-term market fluctuations are inevitable.
By maintaining a long-term perspective and focusing on fundamentally strong companies with solid growth prospects, investors can navigate market trends and achieve substantial gains over time.
