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LORD JESUS CHRIST SAYS

For what shall it profit a man, if he gain the whole world, and suffer the loss of his soul? Jesus Christ

15 Nov 2018

STOCK MARKET--If I have to invest on stocks regularly for a long time without looking at the present price, which 10 stocks would you recommend?


Which 10 Stocks would I recommend ? :
This question is about investing regularly and for long term.
I usually write about trading. Today, I am putting on a different thinking cap and sharing my thoughts about investment in the long term.
Markets generally give good returns over a period of time. Mainly it is good stock selection combined with the power of compounding.
Time in the market being more important than timing the market.
We are currently in the bull phase in Indian Stock Market. Rest of the world is no different. A correction may happen any time soon or it may not.
My recommendation is based on the past performance of the stocks, movement of Index and the fact that outperforming the index is not achieved easily by the individual investor.
NIFTY Index Returns:
NIFTY index has given cumulative returns of 15 % since inception.
In financial year 2016–17, the returns were a commendable 18.58%.
The performance is slightly subdued if we look at 3 or 5 year period.
But over long term, these returns are not to be scoffed at.
The investment idea should be about doing better than this or at least matching it.
My Recommendations:
Invest in the NIFTY ETF ( exchange traded fund ) regularly. Buy during the dips as well. It should be done as a systematic investment plan.
This will be matching the NIFTY returns.
For better results and active investing:
Buy the top 10 of NIFTY stocks on regular basis, like in a SIP ( Systematic Investment Plan )
At present these are:

HDFC BANK
ITC
HDFC
RELIANCE
INFOSYS
KOTAK MAHENDRA BANK
MARUTI
Because of their weightage in the NIFTY, these stocks are the main cause of NIFTY going up or down. The movement by the other 41 just cancels out their own effect. And these are top 10 for some reason and those reasons are not going away in a hurry. There will be occasional dips as is usual in the markets but over a period of time, there is money to be made.
Take one precaution though. When any of the stock moves out of top 10, get out of it and replace it with the new stock in top 10.
It has worked in the past and should work in the future.
Keep it simple and it will work.
For more about NIFTY index and weightage of the top 10 stocks, you can read here:
Thanks for reading.


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