BEST SHARES TO BUY FOR LONG TERM INVESTMENT?

BEST SHARES TO BUY FOR LONG TERM INVESTMENT? 

Before investing in the stock market, there are questions in the minds of people about which company's shares should be invested. If you do not want to take too much risk, then we have brought you 5 such stocks to choose from. In which you can invest for better returns. In fact, in the language of the stock market, it is said that the higher the risk, the higher the return. That is, for higher returns, you have to take more risk.

Market expert and tradeswift director Sandeep Jain has suggested the names of 5 stocks. He says that if the investment outlook is long, then you can invest money in these 5 stocks for better returns. He told that investing in these 5 stocks can be done by taking at least 6 months.

Points to consider before choosing a long term stock:-

Before investing your hard-earned money in stocks, it is important to do adequate research about the industry and the individual company you are about to invest in. Studying the financial statements, operating income, profitability, revenue, leverage and liquidity ratios is necessary but not sufficient when choosing to invest in a particular company of any industry.

The information lies in its past performance, its substantial growth, stability with government authorities, business model, future opportunities and management. These factors can help you decide about the underlying asset in a clear and detailed manner.

The study can also help gauge whether the stock is undervalued or overvalued. An undervalued stock is sold at a market price that is lower than what it is worth, and similarly, an overvalued one is sold at a higher price than the actual market value.

Data is foremost when it comes to considering stocks for long-term investments. The data can explain which stock you should buy and why.

The "when" question is debatable as many opinions suggest buying stocks when the market is down. Although we need to buy when prices are low and sell when prices are high, it is important to consider the factors mentioned above while valuing a stock.

Starting with the annual report, you can jump into more performance details online. While net revenue, profitability, company size and growth play an important role in determining the value of a company's stock, one of the best measures you can look at is to find the natural value of the stock.

In addition to analyzing just historical performance, it may be prudent to evaluate future prospects, and growth opportunities for a company that worked in the past may not apply in today's changing times.

Below are some of the best sectors in which you can consider investing for the long term.

Infosys

Sandeep Jain's first preferred stock is IT giant Infosys. The business of IT companies has increased during the Corona crisis. At present, this stock is worth Rs 1402, this stock has corrected 5 percent this month.

HDFC Limited

One can invest for long term in large cap company HDFC Limited. The loan book of this company has strengthened in the last one year. Presently the share of HDFC Limited is Rs 2,522.

ITC

ITC shares closed at Rs 208 on Tuesday. This company is known for giving handsome dividends to its investors. By the way, in the last one month, this stock has come down 15 percent from its highest level. If the investment outlook is long, then you can invest money for good returns

ICICI Bank

Investing in shares of ICICI Bank, the second largest private sector bank, can give good returns in a few months. The share of ICICI Bank is around Rs 560. In February this year, this stock touched the level of Rs 680. From where the stock has corrected about 20 percent

Mahindra EPC

Market expert Sandeep has chosen Mahindra EPC as the fifth stock for the long term. According to him, these stocks have the potential to give better returns. On Tuesday, this stock closed at Rs 142 on NSE.

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