5 Best Stocks for Beginners

10 January 2023
6 min read

The Indian Stock Market is a great place to start investing your money, especially for beginners. It offers an excellent opportunity for people who want to get into the market without having to worry about the technicalities of buying and selling stocks.

The stock market in India offers many advantages to investors. First of all, it allows them to invest in companies that have products or services that they can use personally. This means that even if you are not an expert in finance, you can still make money by investing in stocks.

Another advantage is that there are many different types of stocks available on this market; so if you do not know what type of stock you should buy, there will be something suitable for your needs.

Despite gathering knowledge, it is often tough to start the stock investment journey. Deciding which stocks to go for is of course a hard decision that many beginners face. Hence, in this blog, we have compiled a list of the best stocks for beginners that once can consider to invest in.

Best Stocks To Buy For Beginners In India

Stocks

Category

Bajaj Finserv Ltd.

Finance

Coforge

Information Technology

Infosys Ltd.

Information Technology

Jubilant Food Ltd.

Food Services

TCNS Clothing Company

Apparel

Factors To Consider Before Investing In The Stock Market

Buying a stock can be a great way to invest in the market, but it's not for everyone. Before you invest your money, it's important that you understand what you're getting into.

Here are some key factors to check before buying a stock:

  • Investment Horizon

The investment horizon is the period of time over which your investment will grow or decline. You can buy stocks that have an investment horizon of less than five years, but it might be more beneficial to invest in stocks with longer horizons.

  • Financial Goals

You may have different financial goals for your investments than someone else does. For example, if you want to retire sooner rather than later, then buying stocks that offer higher returns over a shorter period of time might be best for your situation.

On the other hand, if your goal is simply to accumulate wealth over time and not worry about when you'll retire or how much money you'll have by then, then buying stocks with longer investment horizons might be better suited for you.

  • Risk Appetite

If you searching for the best stocks for beginners with little money, it's important to consider how much risk you're willing to take on with your investment strategy. Some people prefer high-risk investments because they can make money quickly if the market turns around, but others want steady returns over time without taking too many risks along the way.

When deciding whether or not to invest in stocks, it helps to think about how much money you have available for risk—and how confident you are about being able to take advantage of opportunities in the market when they arise (or fail).

  • Size of the Company

When you are thinking of investing in stocks, the first thing that comes to mind is the company's size. It is important to take into account the size of a company before you invest in it because it will have an influence on its performance over time.

A large company will have more resources to invest in research and development, which means that it can become more profitable over time. You should also compare two or three different companies and their performances so that you can make an informed decision about which company is better for your portfolio.

  • Stock Performance

Finally, it is important to look at the stock performance of any given company before deciding whether or not it's worth buying shares. You should also check how well each stock performance has been in the past few years.

If they have been performing poorly over time then there is no point in investing in them because they are likely to lose even more money over time. 

Best Stocks To Invest In For Beginners: Overview

1) Bajaj Finserv Ltd.

Bajaj Finserv Limited is a holding company for various financial services businesses. The Company is engaged in the business of promoting financial services such as finance, insurance, and wealth management, through its investments in subsidiaries and joint ventures.

It is also engaged in the business of generating power through wind turbines, a renewable source of energy. Its segments include life insurance, general insurance, windmill, retail financing, and investments and others.

2) Coforge Ltd.

Coforge Limited is an India-based information technology (IT) solution company. It is engaged in the in-application development and maintenance, managed services, cloud computing and business process outsourcing.

The Company provides computer programming consultancy and related activities. Its geographical segments include Americas, Europe, Middle East and Africa (EMEA), Asia Pacific (APAC), and India.

It offers various technologies, such as product engineering, salesforce ecosystem, digital integration, digital services, artificial intelligence, data and insight, digital process automation, cloud and infrastructure management services, cybersecurity services, systems etc. 

3) Infosys Ltd.

Infosys Limited is engaged in consulting, technology, outsourcing, and next-generation digital services. Its segments are enterprises in Financial Services and Insurance; enterprises in Manufacturing; enterprises in Retail, Consumer Packaged Goods and Logistics; enterprises in the Energy, Utilities, Resources and Services; enterprises in Communication, Telecom OEM and Media; enterprises in HiTech; enterprises in Life Sciences and Healthcare; and all other segments.

All other segments represent the operating segments of businesses in India, Japan, China, Infosys Public Services, and other enterprises in public services. It is one of the best stocks for beginners with little money in india.

4) Jubilant Food Ltd.

Jubilant FoodWorks Limited is an India-based food service company. The Company operates through its food and beverages segment. The Company is engaged in retail sales of food through international and home-grown brands addressing different food market segments. Its international brands include Domino’s Pizza, Dunkin’ Donuts and Popeyes.

5) TCNS Clothing Co.

TCNS Clothing Co. Limited is an India-based women's branded-apparel company. The Company is primarily engaged in the business of women apparels and accessories under the brand names W, Aurelia, Wishful and Elleven.

Its product portfolio includes top wear, bottom wear, drapes, combination sets, footwear and accessories that cater to a range of wardrobe requirements of Indian women, including casual wear, work wear and occasion wear.

Its W brand focuses on modern Indian woman's work, casual, and occasion wear requirements. Its Aurelia brand is a contemporary ethnic wear brand. 

Conclusion

There are many resources available to educate yourself on the basics of stock market investing so you can take control of your financial future. These tutorials and guides, which include beginner-friendly information on technical analysis, will put you on the right track when it comes to picking stocks that meet your goals.

Broadly speaking, the best shares to buy for beginners are those that are easy to research, liquid enough to not be overly risky and with a history of paying regular dividends.

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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