One year may sound like a long tenure, and your money will remain locked for the duration. But long-term investment offers several benefits that are worth considering. Equities, for example, perform better when invested for the long term. The long-term investment allows investors to reap the benefits of compounding growth. Compounding is similar to the multiplier effect since the interest earned on the capital gets reinvested to earn further interest. As a result, the investment grows at a multiplicative rate instead of an additive effect.
This article discusses long-term investing strategies and long-term stocks to buy in 2022.
Best Stocks to Buy in India for Long-Term
Here is a list of long-term stocks to invest in 2022. However, before investing, you must search the market to find which long-term stock to buy.
Caplin Point Lab
The company belongs to the pharmaceutical sector engaged in manufacturing and sourcing API, finished formulations, clinical research, and R&D.
Follow regular Caplin Point Lab share price updates on Angel One.
It is one of India’s largest consumer goods companies with a global footprint. The company offers a range of personal care, wellness, and beauty products with several leading brands across categories.
Track Marico share price on Angel One’s website.
The company provides shrimp feeds and the best technical support to farmers to meet the quality standards of global shrimp consumers.
Find out more on Avanti Feeds share price on Angel One’s website.
The company is a subsidiary of Tata Steel Limited, engaged in the production and sales of pig iron and ductile pipes. The company shares have gone up by 7 percent in the last one month.
Track Tata Metaliks share price on Angel One before you invest.
The flagship company of Bajaj Group is a critical player in India’s two-wheeler and three-wheeler segments. The company exports its products to over 79 countries across the globe.
If you want to invest, track Bajaj Auto’s share price on Angel One’s website.
The company ranks among the top five Indian IT companies and is a leading provider of technology and digitisation solutions to global clients. Software-led IT solutions, remote infrastructure management, engineering and R&D, and BPO services are some of the services offered by HCL Technologies.
Track HCL Technologies share price on Angel One.
Long-term stocks for investment – What is this investment strategy?
Long-term investment requires a careful selection of stocks with the potential to grow with time. Here are some points to remember during long-term investment.
It is crucial to understand the sector or industry where you invest. Strong growth potential can result from the scope to expand or penetrate more into the market.
Understand the potential to earn value
Some industries have lower entry barriers, and companies from the sector will experience tremendous pressure in managing their profit margin. Investors must look for companies with the potential to become a leader in the segment.
Level of regulation and dependency
Some sectors and companies are regulated to protect the interest of the government and consumers. It results in value erosion, leaving very little for the company’s shareholders.
Dependence on economic cycles
Companies move with the economic cycles of the state. Investors need to assess the impact of economic cycles on the company’s performance before investing.
A company’s growth is a direct result of the efficiency of the management. Good management will not only see through the challenges but will also transform the business to attain higher growth.
Also Read: Stocks To Buy This Festive Season
Advantages of Investing in Long-Term Stocks
There are numerous benefits of long-term investment in stocks.
- It helps you ride over the market bumps. Market in the short term can be choppy. But it always grows steadily in the long run.
- It allows more time for your investment to grow.
- It allows your money to grow at a compounding rate.
- Share trading involves expenses. By investing long-term, you can avoid paying recurring charges.
- Long-term investment doesn’t require extraordinary skills and techniques.
- Long-term investment can eliminate emotional biases.
The Indian stock market offers some of the best long-term stocks for long-term growth. Research all options for long-term stocks to buy in 2022 before you invest. Open a demat account with Angel One and start investing.
Disclaimer – This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.