Most of the Indian people don’t want to invest in the Stock Market because they think, it’s Ricky. Things are changing and people are investing more than spending and all this happened because of a pandemic.
There are some people who love to trade but some people want to play the long-term game and this is where long-term investment come in place. There are some stocks where you can put your money blindly.
You have to find those stocks by your self as you gonna invest your money not mine but I will also share some of my shortlisted stocks and some, which I have invested. So let’s talk about that…
Before I say anything, if you want to invest money in the stock market then you have to have Demat account, you can’t just invest with your bank account.
Now, you don’t have to pay a single rupee to anyone, you can open Demate account for free, that finds cool, isn’t it. I personally, use Upstox but you can also check out Groww or anything else.
How to Invest For Long-Term in Stock Market
First thing you need to see, when you invest in the stock market is company valuation, how much profit the company has made in the last six month and check out past history too.
What kind of work they have done and what kind of project they’re about to do in future. Also, when you select one company to invest, check out the stock price for the last six month and past record too.
This is you will have some idea, whether the company you have selected is gonna stay stable or not.
Here, let’s take look at Reliance. I’m gonna share all the data which I have taken from my Groww Demat account.
As of now (December 2020) Reliance Industries value is about Rs 1,697 Cr. All the company who listed on NSC or BSC has value if the company has more value that means, the stock price for that company will be higher then others. Right now on 20th December 2020, Relinace stock price is Rs 1,991.55.
Also, take look at SBI, the bank value is about Rs 809 Cr and as of now, the SBI stock price is Rs 271.45.
You can see, the difference in value and Stock price. Sometimes, the stock price can go up-down, just because the company might announce a new product on the market or some news got leaked.
For example, recently, news brock out that Reliance chairman Mukesh Ambani is hospitalised and after some time, the Reliance share went from Rs 2,369 to Rs 1,899.
This kind of news can also impact on the stock market, so you have to keep eye on the market every day. At that time I bought some of Reliance Share because I knew, the price will go up as most of the foreign brands has invest in company and Reliance is coming out with 5G in 2020.
Everything will come to gather after some time. In short, if you have invested in the stock market then don’t be panic and don’t sell out the share because today or tomorrow, the share price will go up, it won’t stay the same forever.
Share you should look for Long-Term
Let’s not talk too, I’m just gonna add some of share but don’t invest right away, you should research before you put your money.
- Reliance Industries
- Titan Co.
- Nestle IND
- Maruti Suzuki
- Asian Paints
These six Company are safe to play with, you won’t lose money even if you invest without any research. Make sure you do your research before investing.
When you invest for long-term that means you can’t touch that money for long-time, I mean for six to seven years. It’s not like, Invested today and when you need money, you just sold the share, that’s not how long-investment works.
At least invest for five years and also invest those money which you don’t need, it’s better to invest somewhere rather then siting in your saving account.
If you’re new in Stock Market then try to read The Intelligent Investor book by Benjamin Graham. This is the best book ever written on the Stock Market. I mean, Worner Buffett himself has suggested this book.
If you don’t want to invest in the Stock Market then first invest in Mutual Funds. Mutual Funds is also Stock Market but here, you don’t have to do anything, the agent will do all the work for you for free.
For example, if you invest in Axis Bluechip Fund. Here, your money won’t be just invested in axis bluechip fund, it will be divided into 10 companies, this way, if one company don’t perform well then you won’t lose all the money, it will affect 10%.
Let’s say, you invest Rs 1,000 in Mutual Funds and if one company didn’t perform well then you don’t lose Rs 1,000, it will be about Rs 10 to Rs 100.
If you want to play safe then it’s better to invest in Mutual Funds then FDs.