When you have taken your first steps into the exhaustive stock market, it can be challenging to decide on your first few investments. If you are a long-term investor, you might aim to buy shares of companies that will continue to appreciate in the long term.
Alternatively, you might seek penny stocks that will continue to provide you with gradual but consistent profits over the course of a few years.
Irrespective of your goal, the stock market is laden with beginner-friendly stocks that have displayed promising yields since they were listed. We have compiled a list of the best stocks to buy if you are dipping your foot into the expansive world of the stock market.
5 Beginner-Friendly Stocks to Enhance your Portfolio
The decision to invest in the shares of a company can be made after studying its fundamentals. Markers like annual revenue, profits and upcoming projects are feasible to assess the growth of the company’s stock and park your money in their shares.
Based on our insights into the company’s future, here are the 5 best stocks to buy for beginner or Shares that Offer the Best Value for Beginners
1. ITC
The Indian Tobacco Company, or ITC, has been one of the leading FMCG brands in India for a while. It also offers other profitable options like hotels, agribusiness, cigarettes and paperboards. Some popular brands operating under ITC include Sunfeast, Aashirwad, Bingo, Fiama and Engage.
Why we Feel it is a Beginner-Friendly Option
- The increase of the agriculture credit target to ₹20 lakh crore means that agri-based businesses like ITC are expected to perform better than their contemporaries.
- ITC shares appreciated over 50% in 2022 due to a healthy margin across all company verticals.
2. ICICI Bank
ICICI Bank has over 5,534 branches all over India and 13,379 ATMs with a strong presence in rural areas. It caters to retail banking, life insurance, wholesale banking and multiple other segments.
The debate about investing in ICICI Bank or HDFC bank has left several investors in a dilemma. Given that HDFC is the largest private bank in India and ICICI is the second largest, it would seem the answer is obvious.
Based on our research, we think that ICICI might prove to be a more viable long-term investment.
Why we Feel it is a Beginner-Friendly Option
- Higher growth projections with a more robust digital strategy put ICICI ahead of HDFC.
- The bank provides more weightage to retail banking, a segment relatively risk-averse, and decreases the chances of writing off bad loans.
- The ICICI Bank stock persisted with a 20.36% growth in 2022.
3. Reliance Industries
The sheer diversity in profitable ventures makes Reliance Industries one of the most attractive options for your portfolio. The conglomerate has roots in sectors like telecommunication, mass media, petrochemicals, textiles, natural gas and retail.
Why we Feel it is a Beginner-Friendly Option
- Dominance in telecommunication, with Jio occupying a mammoth 38.6% market share.
- The expansion of Reliance retail with the purchase of the first 7-Eleven chain of stores in India.
- Reliance Industries boasts a market cap of ₹15.27 trillion, supplementing its position as the 53rd most valuable company worldwide.
4. Bajaj Auto
Bajaj Auto is one of the most popular automotive manufacturers in India, known for its motorcycles, scooters, and auto rickshaws. It has a highly responsive research and development wing that caters to market demand and helps launch impactful products. Along with Hero Motocorp, Bajaj Auto is one of the most widely recognised automotive manufacturers in the country.
But there are several reasons why it is one of the best shares for long term investment.
Why we Feel it is a Beginner-Friendly Option
- Strong supply chain and effective distribution method that ensures timely delivery for all orders.
- The company registered a net profit of ₹1,491 crores for the second quarter of 2022, a substantial increase from the previous year’s profits of ₹1,214 crores in 2021.
5. Tata Consultancy Services (TCS)
IT stocks have a history of providing good returns to investors. Even with the chaos in the IT industry due to recent layoffs, the growth of the sector looks promising.
TCS has remained one of the most sought-after investment options for individuals looking to diversify their portfolios. Established in 1968, it first entered the stock market as an IPO in 2004. Since then, it has appreciated with compounded returns of 27% annually for the following decade!
Why we Feel it is a Beginner-Friendly Option
- The company posted net profits of ₹10,846 crores in the last quarter of 2022, an increase of 3.9% from the previous year.
- TCS has several clients in Europe and US, making it largely immune to market crashes in India.
Summing Up
Before investing in the stock market, it is vital to recognise and define your risk appetite. Long-term investment can be a viable way to build wealth, provided you trust the company’s fundamentals. Hence, do your own research and use our list of best stocks to buy as a reference point.
Investors are increasingly gravitating towards the stock market and shying away from traditional instruments like fixed deposits. However, it is essential to choose a reliable stock broking platform like Choice India first to create a Demat account and enjoy a seamless trading experience.
Open a Demat account with Choice India now and explore our user-friendly interface to buy and sell shares!
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