Top Stocks to Invest for Long Term in Indian Share Market- 2024
The stock market is a great way to build wealth over time. However, it’s important to have a long-term perspective and understand the benefits of investing stocks for the long haul. Investing in the best stocks to buy for long term investment allows investors to ride out short-term market fluctuations and take advantage of compounding returns. In this article, we’ll discuss long-term stocks to invest in, how to pick them, and a list of best shares to buy for the long term.
Table of Contents
- What are Long Term Investment Stocks?
- Top 10 Long Term Stocks to Buy in 2024
- How to Pick Investment Stocks For Long Term?
- Best Long Term Investment Shares-An Overview
- Bajaj Finance Ltd
- Titan Company Ltd
- Varun Beverages Ltd
- Cholamandalam Investment & Finance Company Ltd
- Tube Investments of India Ltd
- SRF Ltd
- Solar Industries India Ltd
- Persistent Systems Ltd
- Tata Elxsi Ltd
- PI Industries Ltd
- How to Invest in the Best Long Term Stocks India?
- Advantages of Long Term Investment Stocks
- Disadvantages of Long Term Investment Stocks
- Strategies to Select the Best Stock for Long Term Investment
- To Wrap It Up…
- FAQs
What are Long Term Investment Stocks?
Long term investment stocks mean investing in companies that have strong fundamentals and growth potential, and are held for a period of several years. These long term investment stocks are different from short-term stocks because the latter are typically bought and sold quickly, with the goal of making a profit in a short amount of time. Thus, the long term investing strategy involves buying and holding long term investment stocks that are focused on the company’s long-term growth prospects and fundamentals.
Top 10 Long Term Stocks to Buy in 2024
When it comes to building a solid foundation for your investment portfolio, focusing on long term investment stocks for 2024 or good stocks is the key. Therefore, based on these criteria, below are some of the stocks for long term investment.
| Stock Name | Sub-sector | Market Cap (in Cr) | Share Price | 5Y Avg Return on Equity (%) | 5Y Historical Revenue Growth | 5Y CAGR |
|---|
| Bajaj Finance Ltd | Consumer Finance | ₹4,48,641.51 | ₹6,598.15 | 19.28 | 26.55 | 23.55 |
| Titan Company Ltd | Textiles, Apparel & Luxury Goods | ₹3,28,263 | ₹3,559.15 | 23.76 | 20.33 | 31.72 |
| Varun Beverages Ltd | Beverages | ₹1,66,364 | ₹1,347.15 | 18.42 | 26.88 | 59.96 |
| Cholamandalam Investment and Finance Company Ltd | Financials | ₹99,434 | ₹1,157.05 | 18.68 | 18.71 | 40.01 |
| Tube Investments of India Ltd | Consumer Discretionary | ₹75,379 | ₹3,598.25 | 18.53 | 24.82 | 62.35 |
| SRF Ltd | Materials | ₹68,921 | ₹2,283.75 | 21.38 | 21.24 | 41.00 |
| Solar Industries India Ltd | Materials | ₹58,432 | ₹6,731.25 | 23.04 | 29.25 | 46.45 |
| Persistent Systems Ltd | Information Technology | ₹63,398 | ₹8,642 | 19.01 | 21.71 | 70.20 |
| Tata Elxsi Ltd | Information Technology | ₹47,362 | ₹7,721.8 | 33.61 | 17.62 | 53.88 |
| PI Industries Ltd | Materials | ₹51,157 | ₹3,314.45 | 17.97 | 23.29 | 31.82 |
Note: The data is from 19th January, 2024. However, for real-time updates on stock prices and market trends, visit the stocks collection today!
How to Pick Investment Stocks For Long Term?
When selecting the best share to buy for long term, it’s important to consider a variety of factors. Here are a few key considerations:
- Company financials: Look for companies with strong financials, including a healthy balance sheet, positive cash flow, and solid earnings growth.
- Management team: A strong management team with a track record of success can help ensure the company is well-run and you can consider it as one of the long term investment stocks.
- Competitive advantage: Consider companies with a competitive advantage, such as a strong brand, unique product, or proprietary technology.
- Market trends: Search for companies that possess a strong position to capitalize on market trends, such as the transition towards renewable energy or the expansion of e-commerce.
Diversification is an important part of any investment strategy, especially when buying the best shares for long term. Diversification involves spreading your long term investment stocks across a variety of asset classes and sectors to help minimize risk. By diversifying your investments, you reduce your exposure to any single company’s risks and market volatility. At the same time, investors must have a clear idea about their risk appetite and market conditions to achieve their market goals.
Best Long Term Investment Shares-An Overview
Let’s have a look at the long term investment stocks companies that you might be interested to invest in.
Bajaj Finance Ltd
Bajaj Finance Limited (BFL) stands as a prominent non-banking financial company (NBFC) with 73 million customers and assets under management totaling ₹270,050 crore (US$34 billion). According to the Reserve Bank of India’s 2023 list of NBFCs, Bajaj Finance Limited secures the second position in the upper layer, following scale-based regulation guidelines.
Titan Company Ltd
Titan Company Limited, an Indian luxury fashion accessories manufacturer, specializes in jewelry, watches, and eyewear. Established in 1984 as Titan Watches Limited, it expanded its portfolio to include jewelry through Tanishq in 1994 and eyewear through Titan Eyeplus. Fastrack, the youth fashion accessories brand, was introduced in 2005. Part of the Tata Group, Titan is headquartered in Electronic City, Bangalore, and has a registered office in Hosur, Tamil Nadu.
Varun Beverages Ltd
Varun Beverages Ltd, a key player in the RJ Corp group, a diversified conglomerate involved in beverages, quick-service restaurants, dairy, and healthcare, holds the position of the world’s second-largest franchisee (excluding the US) for carbonated soft drinks (‘CSDs’) and non-carbonated beverages (‘NCBs’) under PepsiCo trademarks.
The company operates in 27 Indian States, 7 Union Territories, and 5 international countries, namely Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe. With a global presence, Varun Beverages runs 37 manufacturing facilities, 31 in India and 6 internationally, utilizing a fleet of over 2500 owned vehicles.
Cholamandalam Investment & Finance Company Ltd
Cholamandalam Investment and Finance Company (CIFCL) is a leading financial services provider in India, offering a wide range of services such as vehicle finance, home loans, SME loans, consumer and small enterprise loans, loan against property, insurance agency, home equity loans, secured business and personal loans, wealth management, stock broking, mutual fund distribution, and various other financial services. With a presence in 1191 branches across the country, CIFCL manages assets totaling over Rs 112,782 Crore.
Tube Investments of India Ltd
Tube Investments of India Limited, initially known as TI Financial Holdings Limited, was established on October 6, 2008, as a wholly-owned subsidiary of the former Tube Investments of India Limited (Demerged Company) under the Companies Act 1956. Through the NCLT-approved Scheme of Arrangement, the Manufacturing Business Undertaking of the Demerged Company became part of the Company on August 1, 2017, with the appointed date being April 1, 2016. Consequently, the Company’s name was changed to Tube Investments of India Limited.
SRF Ltd
SRF Limited, a dynamic chemical multi-business entity, excels in producing industrial and specialty intermediates, claiming market leadership in numerous sectors both in India and globally. Operating in India, Thailand, South Africa, and Hungary, the company spans over 90 countries, categorizing its ventures into Technical Textiles Business (TTB), Chemicals Business (CB), Packaging Films Business (PFB), and Other Businesses.
Solar Industries India Ltd
Solar Industries India Limited produces a wide array of industrial explosives and initiating devices. This includes packaged emulsion explosives, bulk explosives, and explosive initiating systems. The company has diversified into manufacturing military ammunition and boasts the world’s largest packaged explosives facility in Nagpur, India. With 34 manufacturing facilities across India and a global presence in over 65 countries, including manufacturing in 5 countries, Solar Industries is a significant player in the explosives industry.
Persistent Systems Ltd
Persistent Systems Limited, a reliable Digital Engineering Enterprise Modernization partner, collaborates with software product companies and enterprises. With profound technical expertise and industry experience, the company provides unique competitive advantages through its offerings and proven solutions. Working closely with organizations involved in software product development and deployment, Persistent Systems supports them throughout the entire product lifecycle. The team is equipped with proprietary techniques, time-to-market accelerators, connectors, and integration services, facilitating efficient product delivery to end users.
Tata Elxsi Ltd
Tata Elxsi Limited, a subsidiary of the Tata Group, operates globally as a design and technology services company, specializing in product engineering and solution services. The company serves diverse industries such as Automotive, Broadcast Communications, Healthcare, and Transportation. Its operations are divided into Software Development and Services, as well as Systems Integration and Support. Additionally, Tata Elxsi offers product design and engineering services to consumer electronics, communications, and transportation sectors. Moreover, it provides digital content creation for the media and entertainment industry.
PI Industries Ltd
PI Industries Limited (PI) is a leading agri-sciences company, deeply rooted in both domestic and international markets. The company operates three manufacturing facilities in Gujarat, featuring 5 multi-purpose plants at Panoli and 3 at Jambusar. These plants boast advanced high-pressure reaction facilities with cutting-edge automation. Complementing this, the company has two formulation units at Panoli to efficiently cater to the needs of its diverse clientele, both locally and globally. Furthermore, PI’s Research & Development center in Udaipur plays a pivotal role in innovation and advancement within the industry.
How to Invest in the Best Long Term Stocks India?
There are several ways to invest in stocks to invest for long term, including buying individual stocks, mutual funds, and exchange-traded funds (ETFs). Buying individual stocks allows investors to handpick their holdings, but carries a higher level of risk. Mutual funds and ETFs provide diversification and lower risk, but may not offer the same potential for high returns. Investors should choose the best long term stocks to buy that best align with their investment goals and risk tolerance.