Long-term investments are ones that yield a greater return after a specified number of years. For tax reasons, keeping assets such as mutual funds or equities for more than a year is considered long-term. Even while a year may seem like a considerable amount of time, it is not sufficient for making a long-term investment. Typically, long-term investments are those with a span of 5 or 10 years.
Watch 5 Best Stocks to Buy for Long Term Investment:
Now, that we are clear on what long-term investment is, let us look at some best shares to buy for long term investments. Allow us to remind you that when choosing these stocks, we took into consideration aspects such as:
1) Market Capitalisation should be a minimum of Rs.20,000 Cr
2)Peg under 1.5,
3)Operating Margin (OPM) over 20%,
4)Stock from a variety of sectors for diversification
5 Stocks to Buy for Long-Term Investment
1)HDFC Bank
Market Cap: Rs.715984.46 Cr
PEG: 0.94
OPM: 57.16
Sector: Private Sector Bank
About the company: HDFC Bank is one of India’s leading private banks and was among the first to receive approval from the Reserve Bank of India (RBI) to set up a private sector bank in 1994. Today, HDFC Bank has a banking network of 6,342 branches and 18,130 ATMs in 3,188 cities/towns.
Start SIP in HDFC Bank
2)Indus Towers
Market Cap: Rs.56337.67 Cr
PEG: 0.40
OPM: 53.76
Sector: Telecom - Infrastructure
About the company: Indus Towersis engaged in the business of setting up, operating, and maintaining wireless communication towers. Indus Towers Limited is formed by the merger of Bharti Infratel Limited and Indus Towers. Indus Towers Limited has over 185,447 towers and 335,791 co-locations (as of 31st March 2022) and a nationwide presence covering all 22 telecom circles.
Start SIP in Indus Towers
3)Divi’s Lab
Market Cap: Rs.92648.47 Cr
PEG: 1.37
OPM: 43.33
Sector: Pharmaceuticals
About the company: Divi's Laboratories Ltd is engaged in manufacturing Advanced Pharmaceutical Ingredients (APIs), Intermediates, and Nutraceutical ingredients with predominance in exports. It has a market presence in 95 countries and ~14,000 employees and is one of the leading pharmaceutical companies in the world.
Start SIP in Divi's Lab
4)Deepak Nitrite
Market Cap: Rs.25308.35 Cr
PEG: 0.27
OPM: 23.57
Sector: Specialty Chemicals
About the company: Deepak Nitrite is a chemical manufacturing company based in Gujarat, India. It is a leading manufacturer of organic, inorganic, fine, and specialty chemicals. It also manufactures a wide range of intermediates for use in industrial explosives, paints, cosmetics, polymers, optical brighteners, and others.
Start SIP in Deepak Nitrite
5)Ultratech Cement
Market Cap: Rs.150178.06 Cr
PEG: 0.91
OPM: 21.89
Sector: Cement & Cement Products
About the company: UltraTech Cement Limited is the cement flagship company of the Aditya Birla Group. UltraTech is the largest manufacturer of grey cement and ready-mix concrete (RMC) and one of the largest manufacturers of white cement in India. It is the third-largest cement producer in the world, excluding China. UltraTech is the only cement company globally (outside China) to have 100+ MTPA of cement manufacturing capacity in a single country. The Company’s business operations span UAE, Bahrain, Sri Lanka, and India.
Start SIP in Ultratech Cement
Investing for the long term is one of the most effective ways to accumulate wealth over time. However, the first thing that has to be done is to focus on the long term and refrain from worrying about the market's daily fluctuations.
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About the Author
Tanushreeis a seasoned professional with 6 years of experience in the Fintech and Edtech industry.
Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
