Top 10 Long-Term Stocks to Buy in India at Their Current Price

There are many ways that investors grow the value of their finances. One of them is through stocks.

A company can sell stocks to as many investors as possible. That's because stocks are a significant type of investment. The idea of buying stocks is to generate income when the value of the stock increases over time. 

In the past years, top companies in India started offering stocks to many investors. But, at the same time, potential investors are still trying to find their way around the stock market.

Remember, long-term investments are ventures that span 2 to 15 years or even more. But, you don't have to worry further if you are still worried about the right long-term stocks to pick.

In this article, we'll go through everything you need to know about the best stocks to buy today in India for long term.

Long-term investments represent the saying "time is money." So here, we'd go over long-term investments' top benefits.

1) Duration

Even in other areas of our lives, duration is paramount. The same applies to investments. You can't go into investments with high hopes of getting your returns in a week.

For long-term investments, you must be ready and willing to be patient enough to put in much time. That's because the longer the investment duration, the higher the return.

Also, the duration is essential to enable the funds of the stock to grow and mature. As much as long-term investments (stocks, to be specific) take a long time, we can't deny that it awards.

2) Compounding Benefits

It is another benefit of long-term investment. This factor enables you to generate higher returns from your investment. Hence, it is ideal to start investments on time.

3) Multiple investments

Another benefit of long-term investments is that you'd have enough time to track and analyze your investment.

Setting other strategic investments to generate more funds would also become possible.

4) Better Knowledge of the Nuances of Investments

Every investment has nuances, and you might never get it right within a short time. But, in long-term investments, you'll have enough time to understand investment rules.

5) Lower Risk

Another advantage of long-term investments is that you won't have to worry about risk. The longer the duration of your investment, the lower your potential risks. Moreover, you don't need to worry about everyday market fluctuations.

Now, you must think beyond the benefits of stocks and long-term investments. There are factors you must consider before choosing stocks for long-term investments. 

1) Size of the company

The size of a company plays a crucial role in your stock investment and would determine how successful you'd be at it. If you intend to go into a long-term stock investment, look for companies with standard establishments that have grown above a small scale.

In short, do your due diligence. Check if the company's fundamentals align with what you need.

2) Innovation

One of the things that you must also consider is innovation. Innovations would help the company you invested in towards expansion.

Make sure you pick a forward-moving, innovative company. It would help you generate more profits from its stock.

3) Avoid Falling Stocks

As much as stocks are an excellent investment that grows over time, they still don't deny that they are volatile. So how do you know when a stock has fallen or is about to decrease?

Remember, potential investors always do due diligence before investing. The signs are always there; you can look out for them. It would help you to avoid falling stocks.

4) Liquidity

Liquidity refers to the selling and buying of shares in stocks. While doing your due diligence, look out for stocks with high liquidity. Stocks with high liquidity are simply those that one can quickly sell at any time.

On the other hand, stocks with low liquidity are pretty vulnerable. Well, you might need to wait for buyers in such cases.

5) ROE

ROE means Return On Equity. It is the financial measurement of the net income of the shareholders. It also tells the company's overall performance in the market. 

6) Transparency

The next item on the list is transparency. Before investing in a company's stock, you must know its transparency level. It simply means the level at which they'd be willing to open up their income reports and calculations of their finances.

More often than not, this has proven to be a significant disruptor in investments and has been causing loggerheads between investors and the company owners.

7) Penny Stocks

These are mainly stocks with meager prices and values. Thus, they do not generate revenues like other types of high-yield stocks. 

But, you can invest in them if you do not have considerable funds to invest in expensive stocks.

8) Seasonal Movement Stocks

Cyclical stocks are prone to be quickly affected by mere economic downturns and are neither persistent nor consistent.

But, the steady stocks are not just consistent; they are also persistent and not easily affected by macroeconomic changes.

9) Company Culture

It is a crucial thing that governs the policies of a company. The company's boards of directors create corporate governance. 

Besides, they control the company's corporate affairs and make financial decisions. In most cases, investors have the opportunity to appoint those who'd be part of the board of directors.

#10. HDFC Bank

Located in Mumbai, this stock operates in the private banking sector. So far, HDFC Bank has been among the best stocks to buy for the long term. It has retained a stock price of about Rs. 2300 per share.

#9. ITC Limited

It is an Indian multinational company with its headquarters in Kolkata. This company has one of the best stocks to invest in for the long term.

What's more, the company has a top-tier and standard modus operandi. It has a current price of about Rs. 330 per share and has the potential to be one of the best Indian stocks for next 10 years. 

#8. Indus Towers

The next on our list is the Indus Towers. This company possesses a wide range of presentations, covering different locations. It has many branches and is well known for its credibility in stocks and shares.

#7. Divi's Lab

Divi's Laboratories is a pharmaceutical company with an outstanding record in the pharmaceutical industry, especially in India. It is also one of the best and most highly liquidated stocks.

#6. Deepak Nitrite

It is a large firm in India with a specialization and expertise in chemicals. It has a PE ratio of about 27.67. Unlike its contemporaries, it is famous for being the priciest share.

#5. Ultratech Cement

It is a company in India that deals in cement. It is also known to be one of the best building partners in India.

But, aside from cement, they also offer investors mouthwatering stock investments. It provides a return on equity of about 15.19%.

#4. Caplin Points Lab

This company is renowned and recognized for skill development. It is also one of the top pharmaceutical companies in India. It provides investors with stock worth Rs. 702.

#3. Mphasis

It is a tech company based in Bangalore. They also offer consultancy services. Mphasis offers credible stocks to investors and has one of the most sought-after and best stocks for long-term investment in India.

#2. Polycab India

Polycab is an Indian brand that deals in the production of cables and wires. It is also one of the highest-rated salary-paying brands in India, with excellent perks and packages for its employees. 

According to statics, as of 2021, Polycab India will still be at the top of the list of best Indian stocks for next 10 years.

#1. APL Apollo Tubes

APL Apollo Tubes, owned by Romi Sehgal and established in 1986, is an Indian company that manufactures steel tubes. Of course, it is a fast-rising company with a growing share price. Today, it is at the top of the list of the best stocks to buy for the long term in India.

CFD means "contract of difference." With CFD, you don't need the ownership of underlying assets. Thus, it allows you to make profits from the price movements.

It is a simple contract between two parties (buyer/seller and broker.) In this contract, the buyer pays the difference between the asset's present value and its price during the contract.

Moreover, the CFD value excludes the underlying value of an asset. Instead, it only considers the price shifts during the trade entry and exit.

·        Markets: Investors buy an asset outright at its current value in traditional markets. But, CFDs allow them to access it at a lower cost. They can either go short or long.

·     Leverage: Next comes finance. Remember, you get higher leverage with CFDs than with traditional trading.

As an investor, there are so many things that you can trade with CFDs. All you need is to do your research and settle for something.

You can trade indices, futures, cryptos, crude oil, and mineral resources, to mention a few. Besides, you can also access shares and forex markets with CFDs.

Your CFD trading will only be what you make of it. And that starts with taking the right step - finding the right platform. If you aren't sure of the platform to use, don't worry. After going through this section, you'd surely come to a decision.

1) Available Markets

It has to do with what the broker offers at a particular time. So before you choose a trading platform, look for its available market, for example, indices, shares, Forex, gold markets, etc.

2) Direct Trading of Shares

Does the platform allow CFD trading on stocks and shares? If so, what is their subscription? This factor would also go a long way to help you settle on a platform.

3) Currencies

Another factor you must look out for is the currency. Does the platform allow you to trade in a suitable currency pairing?

4) Commission Fees

A commission fee is a brokerage that a platform receives as an agent or a broker. While some brokers charge higher commission fees, a few have better and more reasonable charges.

5) Live Data

This live data holds the components of every company's investment policies and portfolio. Besides, it also includes real-time data, like share price charts. From the data, you should be able to know whether to go ahead with the investment or not. Make sure the broker offers live data monitoring.

6) Minimum Opening Balance

The minimum opening balance is the least amount you'd be required to use for investment. Make sure the broker has a fair minimum opening balance requirement.

7) Platforms and Software

Every broker must have a user-friendly platform where the investors can either trade or get information. The absence of this should be a red flag to every potential trader or investor.

1) Investing in Shares/stocks and Trading in CFDs - What's the Difference?

In simple terms, CFDs are not underlying assets that investors need to purchase. You need a significant cash amount to start investing in shares. CFDs may have higher risks concerning leverages, while investment in shares does not.

2) What Form of Underlying Assets and Markets Does CFD Allow to Buy or Sell?

You can buy and sell assets like foreign exchange, commodities, crypto currency, shares, etc.

3) What Is the Main Difference Between Large, Mid, and Small Cap Companies?

The difference between large-cap, mid-cap, and small-cap companies is based on capitalization. Large-cap companies are ranked top and higher, followed by mid and small-caps.

4) Long-Term vs. Short-Term - Which Is the Safest Investment?

Well, long-term investments assure you of higher returns. Likewise, short-term investments have lower risk and are safer to invest in for a short time.

In short, traders and investors are attracted to different modes of investment because of the high expectations of returns. But that should not deter you from doing your diligence before leaping.

If you want to try something new, you can start trading with CFDs. That's because it is the best derivative product that lets you speculate on different financial markets.

Are you still wondering when to make that investment? The time is now! You can open a Mitrade account and start your trading journey.