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Best Stocks to Invest for Long Term in 2022

20 June 2022

Long term investing is a popular investment strategy that intelligent retail investors use to grow their money. Benjamin Graham, the father of value investing, had defined intelligence in investing as someone who does not try to time the market but values the 'time in the market' by picking investment options that suit you best and not investing on hearsay.

While looking for the best stocks to buy in India for the long term, along with fundamentals and qualitative aspects like management quality and efficiency, the financials have to be viewed from a long term perspective. Long term is usually a period of more than 5 years for investors.

 In this blog, we have comprised a list of the best Long Term Investment Stocks for 2022.

Best Stocks to Buy in India for Long Term

 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 2022

  • The Market Capitalization of the Stocks Should be at least More Than Rs 10,000 crores.

Simply put, the market cap is the market value of the company. It is the price at which you can buy all the outstanding shares of the company. It is calculated by multiplying the number of outstanding shares by the cost of each share trading in the market. Since the stock price is a dynamic number, the market cap also changes frequently.

It tells the size of the company. More prominent companies with higher m-caps have already reached a particular stage and are less prone to volatility with lower risk levels. Hence for assured and less volatile returns, a high market cap is an excellent measure to single out companies and select the long term stock to invest in.

  • Profit Growth for Three Years Should be More Than 10%

While operating profit takes only the core business into account, net profit takes all aspects of a company. It also accounts for costs such as taxes, and interest expenses for an outstanding debt and reflects the real earnings of the entire business.

The net profit comes at the bottom of the profit statement after accounting for all costs and expenses, hence is known as the bottom line.

Best Long Term Stocks India: Performance Overview

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.

The 52-week high/low is the highest and lowest price at which a Reliance Industries stock has traded during that given time period (similar to 1 year) and is considered a technical indicator. The 52-week high and low of Reliance Industries are Rs.2,856.15 and Rs.72,016.25 as of 15 Jun '22.

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 and is one of the safest share to buy in india.

The 52-week high/low is the highest and lowest price at which a TCS stock has traded during that given time period (similar to 1 year) and is considered a technical indicator. The 52-week high and low of TCS are Rs.4,043.00 and Rs.73,132.40 as of 15 Jun '22. 

3) Infosys

Infosys Limited is engaged in consulting, technology, outsourcing, and next-generation digital services.

The 52-week high/low is the highest and lowest price at which an Infosys stock has traded during that given time period (similar to 1 year) and is considered a technical indicator. The 52-week high and low of Infosys are Rs.71,953.90 and Rs.1,399.25 as of 15 Jun '22. It is prominently on the list of safe stocks to buy in India, often every year.

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.

The 52-week high/low is the highest and lowest price at which an HDFC Bank stock has traded during that given time period (similar to 1 year and is considered a technical indicator. The 52-week high and low of HDFC Bank are Rs.1,725.00 and Rs.81,278.30 as of 15 Jun '22.

5) Hindustan Unilever

Hindustan Unilever Limited is an India-based consumer goods company.

The 52-week high/low is the highest and lowest price at which a Hindustan Unilever stock has traded during that given time period (similar to 1 year) and is considered a technical indicator. The 52-week high and low of Hindustan Unilever are Rs.2,859.30 and Rs.71,901.55 as of 15 Jun '22.

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 and over three years or more.
  • Filter companies, according to their market cap and pick leaders from respective industries which 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 the company and what it does.

Conclusion

This was the list of the best long term stocks to buy in 2022. Time lets your returns compound over time. If you do not withdraw your returns or interest earned midway, you compound returns on an accumulated number rather than just your principle; your returns will compound manifold.

Time helps us rule out volatility and short-term risks. If you invest Rs 1,000 in year one and you earn 10% returns on it, your amount at the end of year one will be Rs 1,100. If you let your money compound over time and do not redeem your returns, next year you will get returns of Rs 1,100.

Now do this exercise for more significant amounts of investment and for a longer time. The essence and magic of any investment are in the long term.

Disclaimer: The views expressed in this post are that of the author and not those of Groww.

To read the RA Disclaimer, please click here

Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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