Best Stocks/Shares To Buy For Long Term In 2017
Nov 12, 2017 | 19:08 PM IST
Nov 12, 2017 | 19:08 PM IST
The general rule of thumb is that shares bought for more than one-year holding duration are considered as long-term shares. Here are the 5 best shares to buy today for long term duration of more than one year. Below were the best stocks to buy in long term in 2017, However, if you are looking for best stocks for 2019,read Best Stocks To Buy For Long Term Investment .
Disclaimer: Shares recommended and opinions below are for informational purposes and shouldn't be taken as a final advice from Niveza India. You shouldn't rely on this free advice solely and do your own research to arrive at the final conclusions. Our final opinion on which shares to buy for short-term investments is sent via SMS and Email to subscribers of Our Premium Products.
Sectors In Focus 2017
The market moves because there is a lot of movement in certain sectors. All the time, there are some sectors which perform better than others. In the recent past, there have been two sectors which particularly stand out due to their exemplary performance. These sectors are - Chemicals & Fertilisers and Steel. If we have to make a list of 10 best long-term stocks, most of the stocks would be from these sectors. Upon analysing these sectors we will get to know the growth factors and also the growth potential of the stocks in the sector. Its better to analyse stocks instead of looking for readymade stock recommendations for long-term.
Chemicals & Fertilisers - At this point, there are various reasons why Chemicals & Fertilisers sector is doing well. First and foremost reason is that the monsoon is good and the demand for fertilisers in on the higher side. However, the good monsoon will only support the sectors for a quarter or two, but what makes this sector good for long-term investment plan? True, as a smart investor you shouldn't make the buying selling decisions based on seasonal triggers.
The good news is that along with good monsoon, the sector is also getting plenty of help from the government. The government of India recently announced its fertiliser policy. In this policy, it has made it clear that it will extend all the support to the domestic producers. It will also provide financial support to some defunct companies to get them back on feet. The government is planning to restart some of the idle plants owned by The Fertilizers Corp. of India and Hindustan Fertiliser Corp. The government's intervention always works in favour of the sector.
The reason government is so aggressively venturing into Chemicals sector is that it wants to become self-sufficient in the production of chemicals. On the global front, the demand for nitrogen fertilisers is expected to rise up to 5.6% to 119.4 million tonnes in 4 years. The government is looking at this rising demand as a window of opportunity and empowering domestic players to ramp up the production. This clearly indicates the government's long-term vision and subsequently, it will benefit the chemical companies and the investors. So it will be safe to say that we can find the best midcap stocks for long-term investment in this sector.
Stocks To Watch In Chemical & Fertiliser Sector
The performance of Chambal Fertilisers, Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) has been quite good.
Steel- Is not as popular a sector as banking, Information Technology (IT) and Pharma. It's not that it hasn't given returns to the investors, it has, however, it was going through a lean phase for quite a while. But in the stock market, every sector stages a comeback some time or other, and it seems, the steel sector is on the verge of making a grand comeback. The events of the last couple of quarters combined with the government's policies have brought good days for the steel stocks. If the buzz is anything to go by, then it seems that steel stocks hold quite a promise for the investors in the near and long-term future.
Let's shed some light on why we think steel would be a good sector in the future and we will also try to find the steel stocks which promise good returns.
Why Steel Stocks Will Surge?
The most prominent reason that works in favour of steel sector is--government's focus on infrastructure development. Infra development consists of building highways, flyovers, subways, etc. Steel being the essential element of infra development, it is only natural that its demand will go up. On top of that, the government in its steel policy of 2017 focuses on giving prominence to domestic steel producers. If you add these opportune developments, it gives a clear hint that the steel sector is about to take off. Also, schemes like Pradhan Mantri Awas Yojana, which provides subsidies to citizens of certain income level and "Smart Cities" plan which emphases on upgrading and developing civic amenities and urban infrastructure, will give a decisive push to steel sector.
How To Choose Stocks For The Long Run?
Every stock in its lifespan goes through several ups and downs. In between, there are so many things which propel its movement e.g. quarterly results, a sudden slump or rise in a certain sector, change in the management, etc. When you buy stocks with the long-term perspective, you have to take into account all these roadblocks and also the fundamentals of the company which have to be solid enough to sustain the bumps of the stock market.
In short, finding long term shares is a Herculean task. One needs to have a thorough understanding of the equity market and good analytical skills. It can't be accomplished by merely looking up long term stock picks in India. Hence, if you want to invest in stocks but don't have time to research, it's a good idea to subscribe to a stock advisory firm.
Benefits Of Investing In Long-Term Stocks
If you are an investor, you must have heard a lot about long-term investment while chalking out your investment plan. It's safe and secure and saves you the trouble of day-to-day market hassles, things like that? It's all true, but there are also few untold yet important benefits of going long which you might not have heard before.