India’s coronavirus reported cases tally has just now crossed the grim milestone of 70,000. As India’s enters the last week of nationwide lockdown, the PM Narendra Modi asked the chief ministers to take decisions and decide the road ahead. It is highly likely that lockdown will be extended with more curbs and relaxations to go. Now that millions of people are staying at home, the whole economy is in the disruption. It is one of the times when the economy falls into recession and you get the chance to buy some high-quality stocks at lower costs. While some may suggest you stay away from the current market, many experts and market pundits believe that it is the right time to invest in the stock market and generate high returns over the long haul, say 5 to 10 years, or more.
Below we’ve mentioned selected stocks to invest in during lockdown that can benefit you in foreseeable future:
Hero Motocorp is a zero debt company with the ROE – 26% and ROCE 39% - which is the indication of the better financial performance of the company and potential in stock for the foreseeable future.
HDFC Life is a zero debt company with promoter pledging of 63% - which is good. The ROE and ROCE of the company are at 25% and 30% respectively, making it a reliable stock to look forward.
The ITC too have attractive ROE & ROCE values of 23% and 35% respectively.
Amber Enterprises is in Air Conditioning & OEM business connected with big brands like LG, Blue Star, Hitachi, SML ISUZU, Carrier, and Godrej etc. Amber Enterprises is a small-cap listed company with 0.34 debt-to-equity ratio with average CAGR (last 3 years) of 28 per cent. It is a small-cap stock with high growth potential available at 48 per cent discount from its 52-week high. Disclaimer: This is for the sole purpose to provide information to the readers and not to interpret as investment advice. It is also not to consider as an offer or solicitation for the purchase and sale of any financial instrument. Any action taken based on given information contained herein is your responsibility alone. Start investing now with reliancesmartmoney.com Mutual funds and Stocks, both of these are ways of investment that provide lucrative profits. But, for people with no or very little knowledge of any of these, fixed deposits in banks or PPF, remain the only known options. In a fast-paced world like today, which is also affected by pandemic, has resulted in putting a dent in the economy. Situations like these make it very important to have an understanding of options like Mutual Funds and Stocks. With a sound understanding of these options, it will be easier to invest one’s hard-earned money in a better way.
What is SIP? Let us start this as a beginner. So what is SIP? SIP means Systematic Investment Plan. It is the most convenient way of investing in Mutual Funds. Through SIP you can easily invest a bulk amount of money, breaking it down into smaller parts and investing a fixed amount in regular intervals. This can be done weekly, monthly, quarterly or, even bi-annually as per your convenience. The best part about SIP is that it can be initiated, paused or, terminated at any point in time. Because of these convenient features, the SIP model of Mutual Funds has become not only very popular but also a safe and wise option in investment. What is Stock Market? The Stock market is where you invest in the shares of different companies. In very simple language, by doing so, you claim the assets and the earnings of the company. The Stock market is considered very volatile in the way they fluctuate. Whereas on one hand, it offers very lucrative profits, on the other hand, the rise and downfall of a company depends on mostly Geo-political events, Economic events, inflation, etc. Can you do SIP in Stocks too? As we have understood that SIP is a very simple yet powerful model of investment, while buying Shares of a company makes you claim the assets and earnings of that company. The combination of both types of investment results in an excellent means to invest, save and also grow your money with better dividends. Let us understand the Top 5 reasons why you should be doing SIP in Stocks. 1. You don’t need to worry about timing the market: The main issue that one has to face in investing in the stock market is analyzing the right time of the market. Especially if one is not well versed in the workings of the Stock Market, it is a matter of concern if one wants to invest a lump sum amount. In such a scenario, SIP comes to the rescue because the investments are spread over time and that means only a specific part of it is subject to market volatility. 2. Averages the cost of the Investment : Investing via SIP helps you traverse the highs and lows of the market smartly. When the market is low, you tend to get lesser units at a lower price and vice versa when the market goes high. 3. Reap the benefits of compounding : Our parents gravitated towards banks not just because the money was safe but the bank also provided interest which means it compounded. The investment in SIP gets reinvested, which means that we start getting interest on our returns itself. 4. Don’t need to worry about the right time of investing : When you invest via SIP a fixed amount gets deducted automatically from your bank account and is invested into the scheme that one has chosen for oneself. 5. Build a habit of investment : If you are a person who wants discipline when it comes to investment, then investing in SIP is the best way to make that habit. Conclusion : Stock SIP can be risky if you are planning to invest all your money in just one company. Diversification is the key. One more thing to keep in mind is that you need to understand the trend of the market, rather than just going by the name and size of the company. For example in the time of laptops and smartphones, choosing to invest in a company which makes very good typewriters for government offices won’t be a wise choice at all! One has to keep in mind to exit if the company is not doing well. Overall knowledge of the investment plans is going to give dividends always. In unprecedented times as this, when people are either losing their jobs or salaries are being halved, it is wise enough that we look out for options that give us good returns and also keep our future secure. Open Free Online Demat Account: https://www.reliancesmartmoney.com/demat-account-online Online KYC Registration : https://www.reliancesmartmoney.com/online-kyc-registration Start investing now with reliancesmartmoney.com Introduction:
Investment is the key to growing money. Banks help you keep your money safe, but if you want to double or triple your money, then just keeping it in a savings account isn't going to help. Share market is not everyone’s cup of tea, given its volatility. So, where does the more conservative investor go? Both Government of India, as well as, Public Sector Financial Institutions, offer the facility of various saving schemes for such investors. Some of the most popular saving schemes are:
Let us talk about the most popular saving scheme, PPF. What is PPF? Public Provident Fund or PPF is a long-term saving scheme, which was launched in the year 1968 by the Finance Ministry’s National Savings Institute. Due to its returns, tax benefits, and safety, it is one of the most popular saving schemes brought by the Government of India. The backing of the Government of India makes it the most secure and guaranteed risk-free return. Key Features of PPF:
As there is no age limit for opening a PPF account, it is a secure and extremely low-risk way to invest for long-term future goals of the children like their education, marriage, etc. It is recommended, that parents open a PPF account for their children right after their birth. The reason for this is the long-term locking period of 15 years. At the interest rate of 7.1, getting compounded annually, PPF gives very healthy returns when the child grows up. In such cases, of course, the KYC details of the parents are used. In the case of minors, there is a joint account with the parents. It is always recommended that the account be opened early on in life rather than later, to get the maximum benefit out of PPF. For later stages in life, there are other Saving Schemes which one can invest in. Process for opening PPF Account for the Minor:
If your Adhaar card is linked to your bank account, the PPF account will get activated in just one day. Points to Remember for Minor’s PPF Account:
Considering all the above-mentioned points, Public Provident Fund Scheme is the best option to go for your child’s security and long-term goals. The super-easy procedure of opening the account, basic documents, a minimum amount of Rs 500 makes it accessible to all category of people. If you open an account for your child right after birth, you will have 15 long years to invest in your child's secured future. With the stamp of a government saving scheme and with no stress of the volatility of the market, you can have tension-free nights & get sound sleep! Open Free Online Demat Account: https://www.reliancesmartmoney.com/demat-account-online Online KYC Registration : https://www.reliancesmartmoney.com/online-kyc-registration Start investing now with reliancesmartmoney.com |
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December 2021
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