If you are new to investing, you should start by investing in stocks that are largely risk free. A sharp drop in the indices means, it will erode your confidence. Some stocks hardly fall when the markets fall and also participate in rallies. These stocks have generated returns for decades now and never failed investors. Here are a few stocks that you could bet on.
This is one stock that is a top draw among mutual funds. It hardly declines, when the markets fall, has low levels of NPAs and shows consistent growth of 20 per cent, quarter on quarter.
Most mutual funds have it as their top holdings in their portfolio. It has been a performer for many years now, irrespective of how the markets behave.
HDFC Bank last closed at Rs 1286 on the NSE.
This stock is another one that is heavily priced like HDFC Bank in terms of p/e ratio. However, individuals are prepared to pay higher price in terms of p/e and p/book value for the stock for a number of reasons, including low level of NPAs.
Again, this stock is good for newcomers, because it hardly falls when the markets crash. It's a pretty low risk bet, as the quarterly results keep showing solid growth, quarter on quarter.
The stock last closed at Rs 1,187 on the NSE.
Hindustan Unilever (HUL), like stocks mentioned above, hardly faces regulatory challenges and has consistently given returns in the past.
We do not see the stock falling too much, which is why it is such a good bet for newcomers.
Solid brands, an MNC company and leadership position make it a stock worth owning. Again, the quoted at a very high p/e, which one has to normally pay for quality stocks. Shares in HUL last closed at Rs 919.
This stock has been one of the best in giving returns in the last 2 decades from the Sensex companies. Again, a relatively shock proof company and hardly drops when markets drop.
We are recommending Infosys, because the stock is near a 52-week low. A good bet for the long term at Rs 1,030.
Hero Motor Corp
This is the largest 2-wheeler maker in the world. The company is likely to be a huge beneficiary of the 7th pay commission. This is already being seen in volumes and growth of the company as the company had good sales in August 2016.
This is not a bad bet, for those beginning their stock investment strategy.
The stock is quoting at record levels of Rs 3600.
Though Reliance Industries has not generated returns as high as Infosys in the last two decades, the stock has immense potential. It's retail business is now becoming profitable and Jio could break in much earlier than anticipated adding to the company's bottomline. The Petchem and refinery business would continue to drive prospects.
The next 5 years, may see the Reliance stock generating superb returns for investors. Shares in Reliance last closed at Rs 1019.
Ultratech Cement is India's largest cement company by a distance. It is also the largest exporter of cement clinker. With an annual capacity of 64 million capacity and plants in the Middle East, it is a solid player.
We believe that with the focus on infrastructure, there is going to be a solid demand for cement in the next few years.
Though the stock at Rs 4000, is priced at almost 40 times p/e, it still has the potential to grow.
This again is a stock that has churned superb returns for investors for the last 35-40 years. The good thing about this stock, is that the management has adopted to changes rapidly and has taken competition head-on.
Though it remains behind Hero Motor Corp in terms of volumes in the motorcycle segment, the company's ability for launches in various segments of the industry, would hold it in good stead.