Investing in the stock market is a strategic way to build wealth over time. However, stock market investments require a long-term perspective to enjoy the benefits and earn high returns.
Shortlisting the best shares to buy for long-term growth and investing in them, will allow you to endure short-term market fluctuations and also enjoy the benefit of compounding returns. In this article, let us understand what are long-term investment stocks, and list down the best shares to buy for long-term growth.
What are Long-term Investment Stocks?
Long-term investment stocks mean investing in shares of companies having strong fundamentals and high growth potential. Shares of such companies when held for several years can earn huge returns for the investor. Long-term investment stocks are not the same as short-term investment stocks as the latter are generally held for a small term like a few days or months and sold to earn some returns in a short amount of time. The long-term investment strategy involves buying and holding shares of companies having long-term growth prospects and fundamentals.
Best shares to buy for long-term growth in India
1. Reliance Industries Limited (RIL): Reliance Industries Limited has a diversified portfolio including Petrochemical, oil refining, telecommunications, retail, textile and digital services. Under the wings of the visionary Mukesh Ambani, RIL has consistently delivered strong revenue growth over the years.
It is driven by its core businesses and is fast expanding into new sectors, growing leaps and bounds. With a strong business model and an ability to explore and venture into new areas and sectors, investing in RIL is the best bet for investors seeking stability and growth in the long run.
2. HDFC Bank Limited: HDFC Bank is India’s largest Private sector bank and is also one of India’s top-performing banks. Known for its strong network of branches across the country and a strong focus on customer service, HDFC Bank has stood strong even in challenging economic times in the country.
As India’s middle-class group grows, with increasing spending and saving ability, HDFC Bank is well-positioned to capitalize on the growing demand for banking and financial services. Thanks to its strong focus on technology-driven banking, it is well-positioned to take advantage of India’s increasing financial inclusion and digital banking adoption.
The bank’s strong brand reputation, customer-centric approach, and judicious risk management make it an attractive long-term investment.
3. Infosys Limited: Infosys Limited is a global leader in IT services. In the last few years, the IT industry has made a significant impact on the economy of India. Infosys is regarded as one of the leading innovators and providers of quality IT services.
As the world becomes highly dependent on digital technologies, Infosys is poised for sustained growth. Year on year, Infosys has offered consistent revenue growth, by offering cutting-edge solutions and navigating changing market demands.
Infosys is known for its ability to build strong client relationships, its innovative ways, and its strong global presence, making it the best option for long-term investment in the IT sector.
4. Hindustan Unilever: A subsidiary of British company Unilever, Hindustan Unilever Limited (HUL) is India’s leading consumer goods company, offering a wide range of household and personal care products. As one of the most renowned FMCG companies in the world, it boasts a strong distribution network.
It has a strong brand value and a focus on innovation, putting it in a great position to benefit from India’s growing consumer demand.HUL has consistently shown strong revenue growth year on year making it an attractive option for long-term investment in the FMCG sector.
5. Asian Paints Limited: Asian Paints is the market leader in the consumer goods sector, dominating the decorative coatings segment. The growing urbanisation in India with increasing disposable income in the hands of the middle class, has benefited the company a lot.
The real estate and construction sectors are booming in India, with a growing demand for wall paints. This growing demand makes Asian Paints an attractive option for investors looking for stability and growth in the long term.
The company has consistently recorded remarkable revenue growth, driven by its strong brand value and widespread distribution network. The company’s dominant market position and efficient supply chain will ensure consistent returns for long-term investors.
6. Larsen & Toubro Limited (L&T): L&T is one of the biggest engineering and construction corporations in India. With the Government’s increasing focus on infrastructure development, L&T is sure to benefit in the longer run.
In the past few budgets, there has been an increased investment and allotment to the transportation, water, and renewable energy sectors, another area of expertise for L&T. L&T has had consistent revenue growth, thanks to its strong order book and expertise in executing complex projects. The long-term growth prospects in the infrastructure sector make L&T an attractive option.
Conclusion:
Above mentioned are some of the best shares to buy for long-term investment in India. Long-term investment in the stock market is highly beneficial as you can enjoy the benefit of compounding.
For example, if you have invested 1000 in a share and you earn 10% on it in one year. If you do not withdraw the investment, the money invested at the end of the year would be 1100 and then next year you will earn returns of 1100 and not 1000.
This way if you hold your investments in shares for a long term, your returns will compound manifold. Investing in the stock market requires careful analysis and thorough research to earn consistent and steady returns.
Consider your risk tolerance, and consult with an experienced financial advisor before investing in the stock market.
If you want to know about the best stocks to buy for the short-term or long-term, get in touch with our team at Gainn Fintech. With Gainn Infect, stock investing can be even more lucrative as it offers a platform to invest in the Indian stock market.
At Gainn, we deliver shares directly to our clients’ demat accounts instead of holding them with us, Gainn ensures smooth corporate action. Now Indian investors can invest in the companies of the fastest-growing economy and the world’s largest economy at once.
