Could you please suggest for a long term buy stock in NSE?

Question

As an entry level in the stock market business I am ready to invest 50 k and can hold for min 1 yr in the NSE.

Please let me have your valuable advise regarding the options for investment in a potentially capable companies as preferred by you.


Thank you for ur time and concern. Would appreciate if you could list down the companies.

Answer 1

I'd recommend buying stock in the iShares S&P 500 index fund (IVV). This is an exchange traded fund (a type of mutual fund) that owns stock in the 500 biggest companies in the US, and because you'll effectively own so many stocks, it's a lot safer than picking individual stocks.

If you want to invest in individual stocks, do a lot of research and become familiar with the market before you do anything, and make small bets to start out with.

Though if you want a stock pick-- I think Genentech (DNA) will make a very good long term holding. Toss 1k or so at it and see what happens.

Answer 2

Wow.... you want investment advice from a total stranger whose qualifications and motives can't be known by you.
Not a good first move into investing.

Worse.....even the well intentioned people can't give you a good recommendation because they know nothing about you. What's your "asset allocation"? What's your risk tolerance? What are your goals? Do you understand that a one year holding period may not be enough. Long term holding (which, statistically) is five years or more.

Why, as a beginner, would you want to put all your eggs in one basket? I can name you a number of stocks that were Fortune 500 stocks (Blue Chips) that are now worth little or nothing, ie. Enron. Diversification should be your 2nd goal (first being "asset allocation").

If you simply want a simple answer.... buy an S&P500 fund. They have beaten (over the long term) 80% of all Mutual Funds. Two sugestions would be; Vanguard S&P500 Index Fund and the ETF "SPY".

READ READ READ. It makes no sense to just jump in!

Good luck.

Consider yourself warned.

Answer 3

I would not recomend any one or two stocks to invest due to risk if that particular company to have a problem not directly related to the market such as a lawsuit (e.i. Microsoft or Philip Morris) or a company going bankrupt (hmmm... anyone heard of Enron?)

When you invest in mutual funds, you have a professional money management team that picks which stocks and bonds to invest in depending on the objective strategy of the fund. If you only had $25/month to invest, you would be limited to buying one fund. Since you have more, your strategy would be to diversify among different types of funds (e.i. Growth, Value, Foriegn Stocks and Bonds).

Sales charge: Mutual funds have A, B and C shares are the most common for investors. Many do not understand the difference and that is bad when they are the ones investing other people's money. A shares have a front end sales charge of approximately 5.5%, but no back end sales charge. B shares have no front end sales charge, but have a first year deferred sales charge of 5% and decreases 1% per year after that. C shares are designed more for someone who is going to use the money within the first 2 years. For more details visit: https://www.oppenheimerfunds.com/j2ee/www/errorPages/digitalAssetRedirect.jsp?alias=a_primer_on_mutual_fund

What is important to know is what is the money going to be used for in the future? Is it emergency money or build a nest egg for retirement?

Real estate, science, technology, health, foreign stocks,... you name it and there are mutual funds to help you in the direction you desire.

Are you ready to start? Would you like more information? Let me know. -Marcus [e-mail]

Answer 4

buy the NSE itself, it pays a dividend so if you need to hold it longer you will get some pay out untill the stockpays off and in time it should as long as the market is left to trade normally.

Answer 5

dont enter at current levels let the market come down then go for Rnrl,ifci,sbi,