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Best Stocks to Invest Under Rs. 20 in 2022

14 June 2022

The Indian stock market has a lot to offer. There are stocks with high returns, some that have low prices and others that have both. One of the most popular categories is stocks below rupees 20. It is a great way to invest in the stock market as they provide good returns while keeping your investment low.

Stocks can be a great way to make money, but they can also be risky. If you're looking for a way to invest in the stock market that doesn't require a huge amount of money, then you may want to look into buying stocks that are priced below rupees 20.

The best part about investing in these stocks is that they are not only affordable but also come with a lot of benefits for investors. You can make money by investing in these companies because the prices of their stocks keep increasing over time.

This means that if you buy shares from them today, then after some time, you will be able to sell them at a higher price than what you bought them for.

Top Stocks Under Rs 20 in 2022

Here is a list of the best low price shares to buy today-

S.No.

Company Name

Category

1.

Yes Bank

Banking

2.

Vodafone Idea

Telecommunication

3.

UCO Bank

Banking

4.

Bank of Maharashtra

Banking

5.

Suzlon Energy

Energy

6.

Punjab & Sind Bank

Banking

7.

Jaiprakash Power Ventures Ltd

Power

8.

Reliance Power

Energy

Factors To Consider Before Investing in Stocks Under Rs 20

When you invest in stocks, you need to consider the factors that will affect your investment. These factors will help you decide what stocks to buy, how much to invest and when to sell them.

Here are some factors to consider before investing in stocks below Rs 20 in India:

  • Investment Horizon

This refers to how long you plan on holding your stock. For example, if you only want to hold your stock for a few months or less than a year, then it's best not to invest in volatile stocks or stocks whose prices fluctuate dramatically.

  • Financial Goals

If your goal is to make money quickly by trading stocks frequently, then it would be better for you not to invest in any company whose share price has been stagnant for quite some time.

However, if your goal is long-term growth of capital investment and appreciation of value over time through dividend payments from the parent company or another source, then this type of stock could be perfect for you.

  • Volatility

Volatility refers to how much movement there is within the share price of a particular company over time. If there is a lot of volatility, then this means that there will be more risk involved with investing in that company because its share price may fluctuate.

  • Stock Performance

A stock market is a volatile place, so it's important to do your homework before you make a buy. One of the things you'll want to look at is how the stock has performed in recent years, as well as how it might perform in the future.

You can get that information from historical price data or professional stock analysis- either way, knowing whether a stock has been successful or not is key to understanding its value.

Best Low Price Shares To Buy In 2022: Overview

Here is an overview of the best low price shares to buy in 2022 for long term. Make sure to consider these factors before making a decision regarding investing in these low price shares list 2022-

1) Suzlon Energy

Suzlon Energy Limited is a provider of renewable energy solutions. The Company is a producer of wind turbines.

It offers a range of solar energy solutions, such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission, and life cycle asset management. 

2) Yes Bank

Yes Bank was founded in 2004 by Rana Kapoor and Ashok Kapoor. It is headquartered in Mumbai. In March 2020, SBI invested Rs 7,250 crore in the bank amid a financial crisis. SBI now holds around a 30% stake in the company.

YES BANK Limited is an India-based private sector bank engaged in providing banking services, including corporate and institutional banking, financial markets, investment banking, corporate finance, branch banking, business and transaction banking, and wealth management. Its segments include Treasury, Corporate Banking, Retail Banking, and Other Banking Operations.

3) Vodafone Idea

Vodafone Idea Limited is an India-based telecom service provider. The Company is engaged in the business of mobility and long-distance services. It provides pan-India voice and data services across second-generation (2G), third-generation (3G), and fourth-generation (4G) platforms.

Its Vodafone Idea business services provide communication solutions to global and Indian corporations, public sector and government bodies, small and medium enterprises, and start-ups. It offers voice services, broadband services, and content and digital offerings.

4) UCO Bank

The next in our list of top stocks under Rs 20, UCO Bank, formerly known as United Commercial Bank, was established in 1943. It was founded by GD Birla and is now under the ownership of the Ministry of Finance, Government of India. UCO Bank is an India-based commercial bank.

The Bank's segments include Treasury Operations, Corporate Banking Operations, Retail Banking Operations, and Other Banking Operations. The Bank offers personal banking, corporate banking, international banking, and rural banking services. 

5) Bank of Maharashtra

Bank of Maharashtra, owned by the government of India, has around 1,900 branches across the country. It was founded 86 years ago by V. G. Kale and D. K. Sathe. The Bank of Maharashtra Limited is engaged in providing banking services.

The Bank's segments include Treasury, Corporate/Wholesale Banking, Retail Banking, and other banking operations. The Treasury segment includes investments, balances with banks outside India, interest accrued on investments, and related income.

Conclusion

Investing in the stock market is one of the best ways for you to earn money, but investing in stocks under Rs 20 is not a very easy task, but it’s possible as well. You need to look for stocks that are available at very cheap rates and also which have good future prospects.

Trading in the stock market is a good way to put your money to work for you, but it can also be a risky endeavor. While there are plenty of stocks available at low price points, a few of them are better than others. The above list ranks the best low price shares to buy today under Rs 20 you can consider investing in.

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

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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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