Long Term Investment Stocks for Your Portfolio in India (2024)

We all know someone who’s made a quick profit from stocks, but for most of us, the true magic happens over time. Investing in the stock market is a journey, one where patience and strategy are your best companions. It’s important to have a long-term perspective and understand the benefits of investing in stocks for the long haul. Some of the best long term stocks in India allow investors to ride out short-term market fluctuations and take advantage of compounding returns. In this article, we’ll discuss the best stocks to buy today in India for long term investment and strategies for identifying them them to achieve your financial goals.

Top 10 Stocks to Buy Today in India for Long Term (2024)

Let’s look at 10 best shares to buy today for long term from the NIFTY 100 based on their 5Y average net profit margin:

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The table above is dynamic and subject to real-time changes. This data is derived from Tickertape Stock Screener on 15th October 2024. The stocks have been chosen based on the following parameters: 

• Stock Universe: Nifty 100
• 5Y Net Profit Margin: Sort from highest to lowest
• 5Y Historical Operating Cash Flow: Set to High
• Return on Equity: Set to High
• Debt-to-Equity: Set to Low

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

High-volatility stock portfolios for investors with a high risk appetite

Try smallcase

DISCOVER

High-volatility stock portfolios for investors with a high risk appetite

Try smallcase

Overview of the Best Long Term Stocks in India

Here are brief overviews of the top 10 shares to buy for long term listed above:

Bharat Electronics Ltd

Among the best long term stocks in India, Bharat Electronics Limited (BEL) was founded in 1954. They are a Navratna Public Sector Undertaking with a strong presence in India’s defence sector. The company specialises in designing, developing, manufacturing, supplying, and providing life cycle support for a range of strategic electronic products and systems. As of 15th October 2024, the company had a market capitalisation of Rs. 2,11,142.96 cr., and its share price closed at Rs. 288.85. Furthermore, the company had a 5-yr average net profit margin of 15.94%, a 5-yr average historical operating cash flow growth of 25.21%, and an ROE of 26.37%. 

Hindustan Unilever Ltd

Hindustan Unilever Limited (HUL) is an Indian FMCG company based in Mumbai and a subsidiary of the British multinational Unilever. HUL offers a wide range of products, including foods, beverages, cleaning agents, and personal care items. As of 15th October 2024, the company had a market capitalisation of Rs. 6,53,527.06 cr., and its share price closed at Rs. 2,781.45. Furthermore, the company had a 5-yr average net profit margin of 16.62%, a 5-yr average historical operating cash flow growth of 21.68%, and an ROE of 20.16%. 

Adani Total Gas Ltd

Adani Total Gas develops City Gas Distribution (CGD) networks to supply Piped Natural Gas (PNG) to industrial, commercial, and residential sectors, and Compressed Natural Gas (CNG) to the transport sector. Additionally, a consortium of Adani Total Gas Ltd and Indian Oil Corporation Ltd (IOCL) is responsible for developing gas distribution in Allahabad, Chandigarh, Ernakulam, Panipat, Daman, Dharwad, and Udhamsingh Nagar. As of 15th October 2024, the company had a market capitalisation of Rs. 82,034.83 cr., and its share price closed at Rs. 745.90. Furthermore, the company had a 5-yr average net profit margin of 18.58%, a 5-yr average historical operating cash flow growth of 21.81%, and an ROE of 20.47%. 

HCL Technologies Ltd

HCL Technologies Limited is a global leader in IT services, specialising in digital transformation for businesses worldwide. The company offers a broad range of services, including software development, business process outsourcing, and infrastructure management. As of 15th October 2024, the company had a market capitalisation of Rs. 5,06,073.98 cr., and its share price closed at Rs. 1,870.10. Furthermore, the company had a 5-yr average net profit margin of 14.85%, a 5-yr average historical operating cash flow growth of 20.13%, and an ROE of 23.49%.

Zydus Lifesciences Ltd

Zydus Lifesciences Ltd., previously known as Cadila Healthcare Ltd., is a leading pharmaceutical company in India focused on innovation. The company operates across the entire pharmaceutical value chain, from research and development to manufacturing, marketing, and sales. As of 15th October 2024, the company had a market capitalisation of Rs. 1,06,474.65 cr., and its share price closed at Rs. 1,058.15. Furthermore, the company had a 5-yr average net profit margin of 15.80%, a 5-yr average historical operating cash flow growth of 20.29%, and an ROE of 18.47%.

Get 500+ Readymade Stock Baskets

Created & managed by SEBI-registered experts

Try smallcase

Get 500+ Readymade Stock Baskets

Created and managed by SEBI-registered experts

Try smallcase

Investing in Long Term Investment Stocks via smallcase

Did you know that you can invest in readymade long term stock portfolios managed by SEBI-registered experts? Yes, that’s right. 

smallcases are modern investment products that help investors easily build low-cost, long-term & diversified portfolios. At smallcase, you can easily track and invest in specific sectors by diversifying your portfolio across different asset classes, market segments and capitalisations.

What are Long Term Investment Stocks?

Long term investment stocks mean investing in companies with strong fundamentals and growth potential that have been held for several years. A long term investment in shares is different from short-term shares because the latter are typically bought and sold quickly to make a short profit. Thus, the long term investing strategy involves buying and holding long term investment stocks that are focused on the company’s long-term growth prospects and fundamentals.

How to Invest in Stocks for Long Term?

If you’re wondering “how to buy long term shares”, we’re here to help you. There are several ways to invest in the best shares to invest for long term, including buying individual stocks, mutual funds, and exchange-traded funds(ETFs). Buying individual stocks allows investors to handpick their holdings but carries a higher level of risk. Mutual funds and ETFs provide diversification and lower risk but may offer different potential for high returns. Investors should choose the best long term stocks to buy India that best align with their investment goals and risk tolerance. Here is how investors can invest in long term stocks in India:

1. Open a Demat/Trading/Brokerage account. Investors can open a demat account with smallcase.

2. Conduct thorough research into the stocks that may seem suitable to you for the leng term. Investors can utilise the Tickertape Stocks Screener to research the past performance of the long term stocks, using the 200+ filters available.  

3. Place a ‘Buy’ order on the long term stocks of your choosing. 

4. Monitor your investments regularly. 

Note: Investors should conduct thorough research of their own and consult a financial advisor before investing. 

Why Invest in Long Term Stocks in India?

Investing in the best Indian stocks for the long term offers multiple benefits. It provides the potential for returns to grow over time and allows you to capitalise on India’s expanding economy. Investing in a diverse range of industries and established companies with strong track records can also help manage short-term market fluctuations. Additionally, some stocks may offer the opportunity for regular monthly dividends.

Long term investment in shares helps you tap into the country’s growth potential, supported by a rising middle class and increasing consumer spending, which can lead to steady returns over the long term. Many financial analysts provide valuable stock market suggestions that can guide your investment choices. Staying updated with these insights can help you identify potential growth opportunities.

How to Identify Stocks for Long-Term in India?

When selecting which share to buy for long term, it’s important to consider various factors. Here are a few key considerations that may help investors determine which shares to buy for long term:

• Company Financials: When identifying stocks to buy today in India for long term growth, look for companies that not only perform well currently but also have a promising outlook for the next 5 to 10 years. This ensures that your investment grows steadily over time. Investors can look for the best companies to invest in India for long term with strong financials, including a healthy balance sheet, positive cash flow, and solid earnings growth.
• Management Team: A strong management team with a track record of success can help ensure the company’s well-being These companies can be included in some of the lists of top stocks to buy for long term.
• Competitive Advantage: While looking for the best stocks to buy today for long term investments, consider searching for shares that have a competitive advantage. This includes certain criteria like a strong brand, unique product, or proprietary technology.
• Market Trends: Investors can search for the best stocks to invest in for long-term growth that are well-positioned to capitalise on market trends, such as the transition towards renewable energy or the expansion of e-commerce.

When considering investments in the top stocks for long term, it’s crucial to take note of expert stock market suggestions that ensuring your portfolio is well-positioned for growth.

Risks of Investing in Long Term Investment Stocks in India

While many praise long-term investment stocks for their potential to yield substantial returns over extended periods, one might encounter certain challenges, such as:

• Volatility: Investing in the stock market can be volatile. Stock prices of even the best long-term stocks can fluctuate based on market conditions, economic indicators, and company-specific news.
• Lack of Liquidity: When you invest in the best share to buy today for long term in India, you’re tying up your money in an asset that may be challenging to sell quickly. If you need access to your money in the short-term, there may be better options than the best company for long term investment.
• Company-specific Risks: Investing in a single company’s stock exposes you to company-specific risks, such as poor management, legal issues, or competitive threats. Even the best stock in India for long term is susceptible to these risks.

Advantages of Long Term Investment Stocks

Let’s look at the promising benefits of investing in long term investment stocks in India. 

• Potential for Higher Returns: Historically, the share market has provided higher returns in the long term compared to other asset classes such as bonds, cash, and real estate.
• Time in the Market, Not Timing the Market: Trying to time the market can take time and effort. When investing in the best long-term stocks, you don’t have to worry about timing the market or short-term fluctuations.
• Lower Taxes: Long-term capital gains tax rates are lower than short-term capital gains tax rates. Therefore, if you hold onto a long term stock investment, including the best portfolio stocks for long term, for more than one year before selling it, you’ll pay a lower tax rate on any gains.
• Compounding: Long term stocks to buy in 2024 in India allow you to take advantage of compounding. Thus, the longer you hold onto a stock to buy for long term, the more time it has to grow and increase in value. Resulting in significant gains over time.

Important Rules for Long Term Investing

Investors aiming for long-term wealth creation should focus on accumulating the best long term stocks in India that offer steady returns and dividend payouts. Here are a few strategies you can explore to understand which stocks to buy for long term:

Avoid Blindly Following Market Tips

Refrain from blindly acting on stock market tips, no matter how credible the source. Thoroughly research and analyse the best shares to buy for long term before making decisions. While some tips may yield significant benefits, others pose the risk of substantial losses.

Remove Underperforming Stocks from Your Portfolio

Recognise that a stock’s previous decline may not guarantee a future rise. It can be helpful to be realistic about market possibilities and promptly sell underperforming long term share investments in your portfolio to mitigate further losses. Pragmatic decision-making is crucial while considering top stocks to invest in for the long term.

Manage Your Investment Budget Wisely

 You should avoid hastily exceeding your investment budget. Allocate a fixed amount across diverse high-performing stocks instead of concentrating on one. Diversify your investments strategically to safeguard against undue risks and enhance long-term growth prospects.

Adopt and Stick to Your Investment Strategy

Choose a reliable investment strategy aligned with your goals before investing in the best share to invest for long term. Conduct thorough fundamental and technical analyses, utilise stock screeners, and make informed decisions. A disciplined approach enhances your ability to select the top shares to buy for long term success.

Diversify Your Portfolio

While there are several good shares to buy for long term growth, it’s equally important to diversify your portfolio. Spreading investments across different sectors helps mitigate risks and ensures your long-term strategy remains resilient, even during market downturns.

Who Should Invest in Long Term Stocks in India?

Investing in the best Indian stocks for long term can be advantageous for various individuals. Here are five key groups who might benefit from this strategy:

Young Professionals and New Investors

Young professionals and beginners have time on their side, making long-term investing particularly beneficial. Starting early allows them to take advantage of compounding, navigate market fluctuations, and benefit from long-term market growth.

Middle-Aged Individuals and Parents

Middle-aged individuals and parents saving for future needs can also gain from long-term investments. Diversifying with the best stocks for long term investments helps balance growth and security, building substantial funds for retirement or children’s education.

Retirees and Conservative Investors

Retirees and those favouring stability often seek investments that provide steady income. Companies with consistent earnings and regular dividends, such as blue-chip stocks, offer reliable returns and inflation protection.

Aggressive Investors and Entrepreneurs

Those looking for high returns, including aggressive investors and entrepreneurs, may target growth stocks in emerging sectors. Investing in these rapidly growing industries can lead to significant gains from innovation and expansion.

High-Net-Worth Individuals and Institutional Investors

High-net-worth individuals and institutions, like pension funds and insurance companies, seek stable, high-performing stocks to ensure consistent returns. A well-chosen selection of the best shares to buy in India for long term can offer a balance of growth and stability.

Factors to Consider Before Investing in Long Term Investment Stocks

Several factors can affect the best stocks for long term investment India. These factors affecting the long term investment in share market include: 

• Financial Performance: Evaluate the company’s revenue growth trends, profitability metrics like net income and operating margins, and cash flow to ensure a healthy business.
• Growth Potential: When considering long term investments, including the best stocks for long term growth, investors can look for companies that drive innovation and growth. A company that doesn’t build full-proof products backed by recent technology and innovation is bound to lose compared to the one that does. 
• Macroeconomic Factors: Investors can consider macroeconomic factors like interest rates and inflation that may impact the performance of even the best companies to invest in long term. 
• Transparency: Check if the company is transparent in its disclosures. Investors should avoid investing in businesses that lack proper and sufficient disclosures, especially concerning related party transactions.

1 Crore+ people use smallcase for their investments

Download App

1 Crore+ people use smallcase for their investments

Download App

To Wrap It Up…

Investing in the best stocks to buy today in India for long term can be a game-changer for your portfolio, but it requires patience and a long-term perspective. By selecting strong companies with a proven track record of growth and diversifying holdings, investors can minimise risk and take advantage of long-term trends. It’s never too late to start investing in shares for long term, and with careful research and planning, anyone can build a successful long-term investment portfolio.

Frequently Asked Questions on Long Term Investment Stocks