Best stocks to buy in India in 2013 for long term investment

Best stocks to buy in India in 2013 for long term investment

Best stocks to buy in India in 2013 for long term investment

Investment in the stock markets has provided annualized returns of 19% in the last 10 years. The returns from the stock market beat all other investment options. Earlier we have detailed about how to do stock research in identifying the best stocks. In this article we have identified some of the best stocks to buy in India for long term investment from large cap sector.

Best stocks to buy in India in 2013 for long term investment

  1. ICICI Bank: ICICI Bank is the largest private sector bank comparing to its asset base. The loans are expected to grow at approx 20% for FY 13. ICICI Bank capital adequacy ratio is around 18% to 19% which provides good opportunity to ramp-up its business. Currently it is trading at Rs 1122. This is one of the best stocks to buy in India for long term objective.

         Why you should buy ICICI Bank?

  • Consistent good performer in the last 5 years
  • Revenues have grown by 29% (QoQ i.e. last year same quarter vs current year quarter) in Q2-FY13 and 29% (YoY) in FY12.
  • Profits have grown by 30% (QoQ i.e. last year same quarter vs current year quarter) in Q2-FY13 and 25% (YoY) in FY12.
  • EPS is growing year on year Rs 37 in 2008 vs Rs 56 in 2012.
  • Top mutual funds holding highest share in their portfolio
  • UTI Dividend Yield Fund       8%
  • HDFC Growth Fund              8%
  • ICICI Pru Infrastructure        8%
  • SBI Magnum Contra Fund     8%
  • SBI Magnum Multiplier Plus  8%
  • HDFC Equity Fund               8%
  • DSP-BR India TIGER – RP      7%
  • HDFC Top 200 Fund             7%
  1. Tata Consultancy Services (TCS): TCS is the one of the largest and oldest IT Company in India. Currently TCS have 1000+ active clients and 2.4 lacs of employees. TCS is outperforming Infosys and Wipro in terms of growth. Currently it is trading at Rs 1258.

       Why you should buy TCS?

  • This is one of the good stocks to buy in India for 5 to 10 years investment objective.
  • The revenues for the last year FY12 has crossed $ 10 Bn.
  • Revenues have grown by 27% (QoQ i.e. last year same quarter vs current year quarter) in Q2-FY13 and 32% (YoY) in FY12.
  • The revenue growth for FY13 and FY14 is expected at 14-15%.
  • Profits have grown by 17% (QoQ i.e. last year same quarter vs current year quarter) in Q2-FY13 and 44% (YoY) in FY12.
  • EPS is growing year on year Rs 46 for FY2008 vs Rs 56 in FY2012.
  • TCS has multiple margin levers where it is able to absorb the salary increases year on year.
  • Top mutual funds holding highest share in their portfolio
  • Axis Equity Fund                    5%
  • Axis Focused 25 Fund             5%
  • HDFC Long Term Advantage   5%
  • Quantum Long-Term Equity    5%
  • IDFC Classic Equity – A            5%
  • IDFC Imperial Equity – A          5%
  • L&T India Large Cap Fund       5%
  • SBI Magnum Multiplier Plus     4%
  • UTI Long Term Advantage       4%
  • HDFC Core & Satellite Fund    4%
  1. State Bank of India: SBI is the largest bank in India. SBI has been consistent performer year on year with its large base of customers. Currently it is trading at Rs 2,333. This is among the good stocks to buy in India in banking sector.

         Why you should buy SBI?

  • Revenues have grown by 14% (QoQ i.e. last year same quarter vs current year quarter) in Q2-FY13 and 30% (YoY) in FY12.
  • The revenue growth for FY13 and FY14 is expected at 14-15%.
  • Profits have grown by 30% (QoQ i.e. last year same quarter vs current year quarter) in Q2-FY13 and 41% (YoY) in FY12.
  • EPS is growing year on year Rs 106 for FY2008 vs Rs 174 in FY2012.
  • Estimated EPS for FY13 is Rs 214 and FY14 is Rs 248 which indicates that profits would grow in future.
  • Top mutual funds holding highest share in their portfolio
  • HDFC Equity Fund               9%
  • HDFC Infrastructure Fund    9%
  • SBI PSU Fund                      9%
  • HDFC Long Term Equity Fund 9%
  • Reliance Vision Fund – RP    9%
  • HDFC Top 200 Fund            9%
  • Axis Focused 25 Fund         9%
  • Sundaram Fin-Serv. Opp     9%
  • Reliance Banking Fund       7%
  • Reliance Quant Plus – RP    7%
  1. Infosys: Infosys is the 2nd largest IT Company in India. The revenues has crossed 7 Bn. Current market price is Rs 2,292.

        Why you should buy Infosys?

  • Revenues have grown by 22% (QoQ i.e. last year same quarter vs current year quarter) in Q2-FY13 and 23% (YoY) in FY12.
  • Profits have grown by 28% (QoQ i.e. last year same quarter vs current year quarter) in Q2FY13 and 31% (YoY) in FY12.
  • EPS is growing year on year Rs 78 for FY2008 vs Rs 145 in FY2012.
  • Estimated EPS for FY13 is Rs 164 and FY14 is Rs 176 which indicates that profits would grow in future.
  • Top mutual funds holding highest share in their portfolio
  • Reliance Quant Plus – RP 11%
  • ICICI Pru Services Indus.  10%
  • Tata Equity Opp. Fund    9%
  • HDFC Long Term Equity   9%
  • UTI Services Industries    8%
  • HDFC Growth Fund         8%
  • IDFC Imperial Equity       8%
  • Kotak 50                        8%
  • ICICI Pru Target Returns 8%
  1. ITC: ITC is one of the consistent performers in the FMCG sector. Current market price is Rs 288.

        Why you should buy ITC?

  • This is one of the best stocks to buy in India in FMCG sector as it performs well even in the bear market.
  • Revenues have grown by 18% (QoQ i.e. last year same quarter vs current year quarter) in Q2-FY13 and 17% (YoY) in FY12.
  • Revenues are growing at an annualized growth rate of 18% in the last 5 years
  • Profits have grown by 21% (QoQ i.e. last year same quarter vs current year quarter) in Q2-FY13 and 23% (YoY) in FY12.
  • EPS is stable at Rs 8 in the last 5 years.
  • Top mutual funds holding highest share holdings in their portfolio
  • IDFC Equity Fund                    8%
  • L&T India Large Cap Fund       8%
  • UTI Equity Tax Saving             8%
  • Morgan Stanley Growth           8%
  • UTI Top 100 Fund                   7%
  • L&T Equity Fund                     7%
  • SBI Magnum Equity Fund         7%
  • UTI Contra Fund                     7%
  • ICICI Pru Top 200 Fund            7%
  • IDFC Classic Equity                 7%

Conclusion: The above best stocks to buy in India are for long term investment objective. Since the market is in the peak level now, any correction in these stock prices, investors can grab the opportunity of buying them for long term. Ultimately the goal is to invest in best investment options and multiply the money.

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Suresh
Best stocks to buy in India in 2013 for long term investment

Article by Suresh

Suresh KP i.e. me have written 500+ articles on this blog. I love doing analysis and identifying the Best investment options.

108 Comments

  1. Vikas says:

    Hello Sir,
    I have shorlisted following companies for investment.
    Asian paints,
    ceat tyres,
    yes bank,
    marico,
    finolex industries,
    pi industries,
    havells,
    rane Asian paints, ceat tyres, yes bank, marico, finolex industries, pi industries, havells, rane holdings, hatsan agro, godrej consumers. Mi ya companies short list kelyat. ,
    hatsan agro,
    godrej consumers.
    Sir I want ur suggestion regarding these companies.

  2. shekhar chopra says:

    hi sir
    can you sugesst best share to buy this financial year ..i am a invester not trader so please suggest me some best share to buy this financial year..i am a beginer and a small invester so plz suggest according to that..right now i have bought tita comapny ltd.ashok leyland,gujarat state fertlizer and chemical ,century plyboard and rain industries company shares aroun 10 each of comapny shares .please suggest about these comapny shares and another best to buy.
    thanks and regards
    shekhar

  3. Amit Teli says:

    Hi Suresh,

    I would like to know if I invest in MF or Shares, would I receive returns on quarterly basis?

    I have opened trading and demat account from HDFC securities and HDFC bank for MF.

    Can you also advise me on which MF to go with HDFC and shares?

    I am not into SIP.

    I would also like to know about MF's which are directly controlled by MF managers and shares also…

    I am looking forward to invest very little amount of money for now, may be 1 – 2.5k/month or so.

     

    Regards,

    Amit Teli

    • Suresh KP says:

      Amit, Generaly investments into mutual funds or shares done to create wealth and not monthly or quarterly returns. However you may get dividend from shares which is not guaranteed. Similarly MIP Mutual funds would provide your regular returns, but not guaranteed. Hence treat them as growth purpose only. You can invest in large cap mutual funds like ICICI Pru focussed blue chip fund or Birla SL Frontline fund or Franklin India Blue chip fund etc. All mutual funds are controlled by respective MF Managers only. However you can invest directly by visiting their website or invest thru brokers like HDFC securities. You can invest as low as Rs 500 per scheme. Some kept a limit of Rs 1,000 in SIP. 

  4. Krishna says:

    Suresh,

    I 've a question.. Whether this article needs revamp?? I could see this was written a year back and I doubt.. will it fit for the current time?? considering the value of the mentioned stocks.. If the article needs revamp, then suggest us with the best stocks for long-term.

    Cheers.

    • Suresh says:

      Hi Krishna, These are some of the ideas an year back. The idea is these are good stocks, but you should look for stock price. If they are available at cheaper prices, you should grab them.

  5. Nilesh says:

    Its a very good article.But I have a query.I am a small investor who want to invest in stocks on SIP basis.I am willing to put 2k every month.But I dont know which stocks should I put my money.When market is falling every stock is looking attractive to buy.I want only blue chips.I have Nifty Bees also with me. Should I continue investing in Nifty Bees because i have too much confusion in stock selection.Kindly advise sir.

    • Suresh says:

      Nilesh, This is one of the tricky question to answer. I agree that during falling markets, every thing looks like a beautiful girl. We want to buy all stocks. I am writing an article about some winning stocks early next week, you can try them.

  6. NAVEEN JOSHI says:

    For the first time I came accross your site as I was trying to learn about the stock market. However, besides the above, if can guide more about making initial investment? What would be better investing in shares or mutual fund or both? 

    Thanks and regards.

    NAVEEN JOSHI

    • Suresh says:

      Naveen, Good topic. My immediate answer is that Mutual funds would be a better option in comparing to overall features. But let me analyse both features, positivs and negatives and would revert next week with an article.

  7. Vinay Desai says:

    Dear Mr. Suresh,

     

    Thank you for the wonderful articles and enlightment for financial planing and investment options.

    I would like to do share trading, I have limited knowledge abt the same. Where do I start from (opening a Demat a/c) and a few tips to go abt. For now I want to start with small amt to gain some experience.

    One more guidance required – A few SIPs that I have thought to invest Rs. 500 a month are

    SBI Magnum 

    SBI MAgnum FMCG

    HDFC balanced 

    • Suresh says:

      Vinay, You can open with any brokerage firm like ICICI Direct or Fundsindia.com. See this article about best brokerage firms. http://myinvestmentideas.com/2013/02/how-to-choose-a-good-broker-for-demat-account-services/ You can enquire with them before opening the demat account. Regd MF’s, last two are good. But FMCG is high risk, high return investment. 1st one say SBI Magnum without further details, please let me know the complete name.

      • Vinay Desai says:

        Dear Mr. Suresh,

        I was hoping you could help me with that as I picked those up from a artcle of yours. If you can suggest a medium risk MF.

        I have an a/c at SBI but I saw Angel Broking is a bit cheaper option as I am not very well worsed with trading should I start outright or wait? 

        Also I forgot to mention I have saved abt a lakh your advise on its investment I am 26.

        Thanks and Regards.

        • Suresh says:

          There is no hard and fast rule on selecting brokers. If you are frequent traders, you should look for transaction charges, else you can consider anything. It makes small difference. Regd 1 lakh, you can invest in balanced mutual funds in phased manner (don’t just invest lump sum in one month) of 3 to 4 months so that you can take advantage of markets.

  8. Nirupam Sinha says:

    Hi Suresh,

     

    What's your view currently on Yes Bank & SBI FMCG Fund (G). Is it the right time to invest in Yes Bank & to start a SIP for SBI FMCG (G).

    • Suresh says:

      Nirupam, I have recommended this stock some time back. I cannot say whether this is right time, but you can keep this stock for long term. Regd SBI FMCG, Yes it is good fund, but high risk high return fund.

  9. SRC PATN says:

    Dear Expert

    Should I continue to invest in GOLD ETF? currently I am doing for last 2 Year with lum sum every 2 month

     

  10. Pradeep Sharma says:

    Dear sir,

    I want to know the name of stock which are very chip now (like Rs 10 or 20 per share)but can give me 500 % or 1000% return in coming 5 or 6 years.I don't know but i thing these chip stock are called "Small Cap Share".i hope you understood me.

    • Suresh says:

      Pradeep, I do not track in deep in stocks. I majorly focus on non stock investment options. Please let mw know in case you have any questions regd that.

  11. Amit says:

    HI Sureshji,

    Need your guidance on the current investment scenario. I am a bigneer in this investment world. Though i keep timely investments towards my PPF account for tax savings. I am newly married and need timely returns for house purchase etc as demanded by the life in the long run.

    Currently i am able to save around 50 K per month.

    Can you please suggest.

    • Suresh says:

      Amit, if you are looking for long term investments, you can choose mutual funds as one of the option. Invest in large cap and diversified funds. But be sure that you don’t require funds for atleast 8 to 10 years. If you need money for your house in short to medium term upto 5 years, invest in bank FD or debt mutual funds or balanced mutual funds. 

  12. Raja says:

    Dear Sureshji,
    I want to invest 5 lacs(1 lakh/year) for 15 years. Can you please suggest me the different secure options available for that.

  13. Gaurav says:

    i want to invest 1 lac rupees these year so i can get  good return after 3 years  for my abroad studies

    please suggest stocks  which wiil increase in coming  3 years

    thank you

     

    • Suresh says:

      Gaurav, Since it is for short to medium term of 3 years, you should look for low investment options. Invest only in bank FD or debt mutual funds. The returns can be anywhere between 9% to 11% per annum. 

  14. Neeraj says:

    Hi Sir,

    I have got such great time to read your guidence about all type of invesment guideline.

    I would like to take your advise because of I am unknowledgable about invesment field.

    As I am NRI but still don't have any invesment.

    Can you  please suggest me what would be the best sutable option for me where I am inverested for

    One life insurance policy covrage of 50 Lac.include spouse bebeficiary facility

    One health insurance policy of 5 lac.

    One retirement pension plan

    & the last famiely Health insurance plan

    Where my invesment budget is 50 thausand per annum & i am at the age of 30 unmarried.

    Please guide me what would be the best option where I should go for.

     

    Regards,

    Neeraj.

    • Suresh says:

      Neeraj, I advice you to invest in stocks, mutual funds and in Bank FD’s. To start, invest in diversified mutual funds and large cap mutual funds. Slowly shift your focus to othe funds and also invest in large cap stocks. I would soon publish some more stock tips for mid-cap and small-cap.

      • prashanth says:

        Dear Suresh, Waiting for your…. soon publish some more stock tips for mid-cap and small-cap for short term

        Regards

  15. Rajesh says:

    Hi suresh, may I know stock or share are same thing which can be hold for long term looking at long term objective and how to go for that , if demat account then from where I can have demat account with low charges on me ,thanks

  16. prashanth says:

    Dear Suresh, Required an advice from a Experienced person like you.
    since, we are seeing there is lot inflation going on with 
    Indian economy which is linked to US dollar and its reaching its new phase to hit in rupee may be it may go till 60Rs as per Media,and i have observed lot of emerging businesses are not performing as they expect to be soon or later if…in world economy may hit by any sort of so called  recession,inflation,DE-appreciation which will effect Indian economy
    what is your suggestion or advice that we investor must be vigilant like take profits or make alerts of our investments.

     

    • Suresh says:

      Prashant, Tell me what happnened in 1998-2000 and 2006-2007 ? It was the same recession, financial crisis etc., These are part of investment strategy. Indian stock markets have given 15% to 18% annualised returns in the last 10-15 years inspite of all so called such market sunamis. If you are short term investors, you may be worried. If you are long term investor, all these market and economic fluctuations would be taken care and you would get fair amount of returns. Please let me know your thoughts.

      • prashanth says:

        Suresh,Teach how the stock percentage is calculated,is it the same as bank.

        My Doubt: I have a FD( 2013-2023) of 5 Lacs for 10 years =5,00,000 * 8.75%=43750 * 10= 4,37,500.

        STOCKS= X Company share Value 1500 in 2013 and i brought 5,00,000 .

        5,00,000 / 1500 =333 share on 2013,

        the share have grown to 2000 per share in 2023 so my value profit is 500 * 333= 1,66,500.

        pls clarify is this the calculation done with stocks if i am wrong i would request you to expalin briefly to your readers

        Thank you

         

        • Suresh says:

          Prashant, The computation you have done for stocks are right. However in between if company declares dividend (profits shared with shareholders) in any year, that would also get added to your overall profits. 

  17. Srinivasan says:

    Dear Mr. Suresh,

     

    I am impressed with this article and you other article on SEP.

    Could you please recommend 3 stocks for SEP

    I can invest Rs. 3000/- in total per month on SEP.

    Awaiting for your valuable suggestion.

    Regards,

    Srini

    • Suresh says:

      Srinivas, Currently I am not recommending any stocks other than these. 

      • Srinivasan says:

        Dear Suresh,

        Thanks for the reply. Can I plan these stocks for SEP for a period of 3 – 5 years ?

         

        Regards,

         

        Srini

        • Suresh says:

          Srinivas, Please invest for long term. 3-5 years would be medium term and you may or may not generate good returns. Also as indicated in my article, please encash every fall in the prices of such stocks and invest more. This way you can earn more returns.

  18. prashanth says:

    Hi,Suresh whats your opinion on IDFC Stocks for Short Term (1-2 years) or Long Term.

     

  19. prashanth says:

    Dear Suresh, I have quiries please…….

    The Companies like TCS will come up for any future announcements in IPO's (New Project)

    1.For any share we brought we can sell it at any time or time gap must be manitianed for an Investor

    2.which one is good for shares BSE or NSE and why do they differ  

    3.what is Face Value

    4.Your advise for stocks or IPO's

    5.After Investing shares any possibility the particular company will be dissapeared.

    what will happen? for the invetsor about their shares

    6.online trading 3-1 account we can buy and sell instantly the shares.

    7.shares or stocks which is correct.

     

    • Suresh says:

      Hi Prashant, IPO are intial public offering would come only once when company first issues its shares to public. 1) You can sell anytime, however you may make profit or loss if you want to sell at any point of time 2) Both these stock exchanges are good. Some companies follow-specific norms of NSE and would get listed only in NSE, similary in BSE 3) It would differ from company to company. For TCS, currently the facevalue is Rs 2;   3) Stock investments are good for long term players. IPO’s are also good, but they are yet to matured in stock markets, hence investors may react differently. e.g. SME IPO’s issued in Jan to Mar-13, none of them are good, but investors taken different and they are trading at 20% + 5) Yes, it is very much possible. Dot com burst in 2000 is classic example in US where several companies dis-appeared. It happened for few companies in India too 6) Yes 7) These are used interchangeably. If you are talking in stock market language, both are same. 

  20. amarjeetsingh says:

    sir, do u still think that in the present environment the stocks as detailed above can be brought for long term or should there be any change in strategy

    reg

    amarjeet singh

    • Suresh says:

      Hi Amarjeet, These are good stocks. No doubt. However they should be purchased at appropriate time. If you observe, I have specified my last line item athat you should buy at every level whevever there is a dip in prices for these stocks.

  21. prashanth says:

    Hi Suresh, Stocks which you have mentioned are to be the best thats for sure .

    TCS……. can you tell us more which we may rely on taking bit risk like if we invest for at least 10 years can we expect the avergae of ?

    • Suresh says:

      Prashant, TCS is one of the best Stock in IT sector. While Infosys kind of stocks are going thru some restructuring and slowdown, TCS kind of stock is good bet for long term among the IT sector. You can take a call on this.

      • prashanth says:

        Suresh Bhai,TCS is now trading 1450.70 @15/06/2013.the price you have mentioned in the above 1258 is not even in 2013,am i seeing any wrong please correct and is there any comission when i trade through brokers.If yes, is there any option where i can invest direclty wiht the company which excludes brokers etc.

        Thank you

         

        • Suresh says:

          Prashant, This article was dated Dec-2012 indicating good stocks which can be looked in 2013 for long term. Except for brokerage transaction charges which ranges between 0.25% to 0.8%, there should not be any other charges with any brokers.

  22. Rajesh says:

    Hi ,suresh good to see such informative things , however may I know that out of thease top  5  blue chip stocks for long term objective, is it good to invest in  ICICI and  ITC  for next 10 year with 2000  rs/monthly  through sip   .   if yes then whom to approach to buy thease stocks As Iam new to investment nd looking for long term objective of next 10 year to increase my wealth Nd meet my personnel objective 

  23. alchemist says:

    Hi Suresh,
    1. Your article was a interesting read. I request your views on fwg stocks, in which i have invested for long term(8-10 yrs) gains :-
    BHEL
    ITC
    TATA STEEL
    TATA POWER
    KPIT CUMMINS
    LIC HOUSING FINANCE
    GATEWAY DISTRIPARKS
    KAJARIA CERAMICS
    FEDERAL BANK
    APM INDUSTRIES
    JHS SVENGUARD
    OBC
    MOTHERSON SUMI

    2. Pl advice if i should continue SIPs in all of them or not. Also suggest if any changes.

    • Suresh says:

      Alchemist, it would be difficult for me to analyse so many stocks for you :-). There are blue chip stocks, mid-cap stocks, would review some time later and provide your feedback to your email

  24. raju says:

    I want to invest in stock market for long term for my childrens education and for my retirement plans. Please suggest me on the best stocks like infosis. thank you.

    • Suresh says:

      Hi Raju, The onces I indicated here some of the good stocks you can invest for long term. However don’t just depend on stocks as they are high risk. Diversify your portfolio across stocks, mutual funds, bank fd, small saving schemes, gold  etc.,

  25. Preeti says:

    Hi Suresh,

    Thankyou so uch for the prompt reply and the suggestion. I a bit confused about the difference between large cap , mid cap and small cap stocks. Could you please tell me which all stocks are large caps. And also I had bought the mutual fund from  a broker long back but as of now i am not in touch with him. Dont have any details of him, so in such a case how can I sell it off and how to find out whats the current value of the mutual fund bought by me.

    I used to buy it just for tax saving purpose but now I really want to understand the technicalities associated with F and stocks.

     

    Thanks in advance

    Warm regards

    Preeti

     

    • Suresh says:

      Hi Preethi, if you see BSE Group-A-30 or NIFTY-50 are all large cap stocks. These are large capitalization (large-cap) companies which are traded on stock exchanges. How are you tracking your mutual fund units now ? If you are tracking on your own and you get regular statemnets from mutual fund houses, you can visit the mutual fund website and check for redemption (sell) process. What you were purchasing was Equity linked saving schemes MF’s (ELSS) which has a lock-in period of 3 years from the datd of purchase.

  26. Preeti says:

    Dear Suresh,

    Interesting and such informative blog. Thanks for sharing so much infromation. I want to invest 4 Lakhs in shares for long term where in I can earn somethign around 20 L returns in 3-4 years  . Could you please suggest me the best shares to buy in next 1-2 months. Also I have bought a share of 20k of petronet @ 126/-, 40 k of bhel @ 183/-, 40k of nmdc @ 126/-. How long should I hold with these stocks. are they good for short investments. Please suggest.

    I also wanted to know, how mutul funds are sold . i mean i have invest at least 1 L in mutual funds and how can I sell them now.

    Thanks in advance.

    Regards

    Preeti

     

     

    • Suresh says:

      Hi Preeti, Stock market investmetn is a long term game. Thought I would not advicing you about a specific stock, invest in large cap stocks. Also when SENSEX is touching new highs, you need to be little cautious before investing in stocks. If you already have mutual funds, have you purchasd them earlier through a broker. If yes, you can sell thru the broker itself. If you have purchased them directly from mutual fund houses, you need to contact them through mutual fund house website and follow the process. Some do oniline, for some fund houses, you need to complete the documentation.

  27. Anant Joshi says:

    Suresh Ji,

    This is first time i visited the website and found its very Informative. One stop solution for all your financial queries. Many Thanks to you.

    Very Good Work. Keep it up.

    Anant Joshi, Ludhiana (Punjab)

     

  28. swapnil says:

    Hi,

    This is only first time i visited this site and i liked your suggestions very much. thanks a lot for good work..

    Can you pl let me know best 3 SIP's if i want to start investments in june? I will be looking for good returns with locking period of atleast 5 years. thanks in advance.

  29. Dheeraj says:

    Hi Suresh,

     

    I read u r blog .. its sound good to me..

    I have done SIP for the below MFs

    Birla Sun Life Frontline Equity Fund – Gr

    HDFC Top 200 Fund – Gr.

    ICICI Prudential Dynamic Plan-Cum

    Reliance Regular Savings Fund Equity Plan – Gr

    Please let me know if I have invested in correct Mfs. or should I change them…

     

    Thanks in advance for all u r advice and effort.

    Dheeraj

    • Suresh says:

      Hi Dheeraj. All Mf’s selected are good except Reliance regular saver. ICICI Pru dynamic fund is defence stock, your returns would be low when markets are under volatile, but neverthless it is good MF. Reliance regular saver is Crisil-4 ranked MF. Returns are very low compared to even a bank FD. You should see an opportunity to get out of this and invest in better stocks. If you like my blog, pls give me facebook like.

  30. Dmodi says:

    Hello Suresh,

    I am kind a newbie in this market. Whats your view on following scripts?? I am planning to hold for 3 to 4 years from now. I had bought following stocks within last 2 to3 month with the suggestion of broker agent.

    Stock's:

    ICICI bank, SBI bank, Indusind Bank, BHEL, L&T, ABB, Reliance, Reliance power, Reliance Infra, Sesa Goa, Hero MotorCorp, Maruti, Wockhardt, Asian Paints, Shree Cement.

    I am seeing continue fall in this all stocks gradually. I am really looking suggestions from you that do I continue buying or wait for some more time to fall. Thanks in advance!!

     

    • Suresh says:

      Hi Modi, Some of the blue chip stocks indicated here are good. However I need time to analyse all of them

    • Dmodi says:

      Thanks a lot for your input. Sure take your own time. Quick question do you see more fall into the market??. Again thanks so much for your time.

      Regards,

      Modi.

  31. M N Krishnan says:

    Dear Suresh,

    I hold the following Mutual Funds ….would like your valuable suggestion on the same:

    1)Sundaram Mid Cap

    2) ICICI Banking and Financial

    3) Reliance Banking

    4) ICICI Discovery

    5) Franklin Flexi Cap

    6) Reliance Equity opportunities

    BRs,

    Krishnan M.N.

    • Suresh says:

      Krishnan, 1) Sundaram-Avg mutual fund with Crisil-3; 2) ICICI, pls give more info not able to make out the MF scheme; 3) Reliance banking- Sector based fund-High risk-invest small portion only; 4) ICICI Discovery-good defence stock-good for long term in volatile market; 5) Franklin flexi-Avg fund with crisil-3 ranking 6) reliance equity opps-Crisil-1-good MF for long term. If you like my blog, please give me a facebook like :-)

  32. Hiren says:

    Dear Sureth

    Thanks fot the article. I am an NRI and I have monthly saving of around 2 lacs. How can I invest this money into stocls ( as long term investment) or is it better for me to make fixed deposits.

    What would be more advisable, stocks vs mutual funds vs FD or to start a business if I can invest 2 lacs/month? This has been my corrundrum and I would really like to seek your opinion on it.

    Best regards

    Hiren

    • Suresh says:

      Stocks – High risk high returns, FD are low risk, low returns. Mutual funds offer moderate returns and moderate risks. You should invest in MF’s to start with.

  33. Neeta says:

    Hi Suresh, 

    The article has highlighted very pertinent points and is truly an insightful reading. However, I am not able to figure out how the Q3FY13 growth numbers were arrived at, especially since the article was published on 22nd December. Is this a typo? Also, even if the growth numbers are for Q2FY13, ICICI bank for expample grew just around 5% q-o-q, whereas the article mentions a growth of 20%+! Am I missing something? 

    • Suresh says:

      Hi Neeta, The quarter indicated was Q2 (Jul-12 to Sep-12) and not for Q3. I have corrected it. Also when I said improvement in the quarter, what I meant was the improvement compared to previous year same quarter. Like you, others also would have got similar doubt, hence now I have updated what does that quarter mean. Thanks for the feedback.

  34. Haja Najumudeen G says:

    Hi Suresh,

    i would like to buy some stocks for long term share, initially i will invest 12k, what is your advise for me, and i dont want any kind of interest business. please advise me.

    Thanks.

  35. Satya says:

    Dear suresh, thanks for the information on best stocks. I was a big looser and lost lot of money (5-6 lacs) in shares, commodities blab blab la…. at last I planned to invest in Mutual funds now.. also trading on F&O in stock market. Could you please give your valuable plan for short term or long term so that I can earn my money back… I can invest 10-15K per month…. Please suggest…

    • Suresh says:

      Satya, Just recall all those experiences and you would realise the mistakes you have done. Just ensure you do not repeat them. Invest in large cap stocks recommended here or largecap / diversified mutual funds for long term (refer top-10 SIP mutual funds for more details). Do not see for short term

  36. mridula tandon says:

    dear suresh,m a middle aged woman with a 4 yr old daughtr. m a techr with Rs 10,000 as salary.my hsbnd is on a trnsferabl job n v keep moving evry 2 yrs,as a reslt i may nt b permanently on job. the remuneration may also go up n dwn.plz sugest a gud invstmnt plan ,keeping my constrans in mind.

    • Suresh says:

      Mridula, Since you indicated that your income is fluctuating, there are two options for you. 1) Open a variable recurring deposit (e.g. with Indian bank or any other bank) wherein you can select minimum amount of Rs 1,000 and can deposit any amount every month in case you have surplus. You would still get interest which was informed to you by bank when you opened VRD account. 2) Invest in diversified mutual funds or balanced mutual funds for long term through SIP. The min amt to invest by SIP per fund  would be Rs 500 or Rs 1,000. All the best

  37. anup kumar verma says:

    Hi suresh, I want to invest in gold etf Gold bees. Pls suggest at what rate i should purchase. I want it for long term. Thanks – anup

    • Suresh says:

      Anup, Gold ETF’s are available based on the gold rates. Since gold rates are falling now and are available at Rs 2,980 per gram, it is an opportunity for us to invest for long term. There can be still fall in gold rates, but it does not matter as you are planning for long term investment

  38. Karthik says:

    Hi Suresh,

    Thanks for your service, Pl suggest the best stocks(below 500 INR) to invest for 5 years time frame.My target to close out my home loan.

    Thanks in advance

    Karthik

     

  39. RAJIV says:

    Dear Suresh,

    Well just missed to mention Even SUNDARAM MIDCAP is in SIP started Jan 2010, present status is 115 absolute return.What should we do….pull out or stay put.

    Will appreciate your advise.

    Regards,

     

    Rajiv 

    • Suresh says:

      Hi Rajiv, Sundaram select mid cap MF was one of the good mutual fund. However since mid-cap stock prices has fallen heavily the returns now are just comparable with any bank fixed deposit. You can stay invested by taking some risk. In case of any mid-cap stocks rising, you would see increased returns. However if you are comfortable with current returns, you may exit. These are high risk high return MF’s

  40. RAJIV says:

    Dear Suresh,

    Thank you so much for your immediate reply . Much appreciated .For future investments , will follow your advise .Well have couple of more questions to ask .You have suggested to pull out of FT INDIA DYNAMIC FUND with good gains. I had invested in 2010 and at present its up by 17%.Should we pull out right now or wait ……..

     

    Thank you once again.

     

    Regards,

     

     

    Rajiv 

  41. Jay says:

    Hello Suresh,

     

    Thanks for your Information through this post ,

     

    I would suggestion from you for my Investment , I am new to this world and now i want to invest my saving intelligently I have target to invest 10-15 k per month on both equity and MF. Please illuminate me with your suggestion. I am in need of money in 1 Year , 3 Year , 5 Year 10 Year and 20 Year from now .These are time frame which i think i will need money for different purpose , Could you please find time from your busy schedule and advise me , I will grateful to you .

     

    Thanks

    Jay

  42. arun kant saxena says:

    i have got enough knowledge in respect of variety of all sectors of shares companies as to buy or not if is to buy, the reaseon behind 

    • Suresh says:

      Arunkanth, Good to hear that you have rich experience in share marketing. Can you please help with a guest article on how an investor should buy in volatile markets or any other markets and benefit for long term. You may also refer some good stocks other than what I specified. This would create value for the readers on my blog. If you are interested, please send the details to suresh@myinvestmentideas.com. Thanks for your valuable feedback.

  43. Santosh says:

    Hi Suresh,
    I am a newbie and in search of investment options in MFs and stocks.
    Could you please suggest me some options other than the ones stated above. I am comfortable with mid term (1-2 years) to long term (3 and above)
    Also, It would be really great if you could suggest some good brokers..

    Thanks in advance!

    Regards,
    Santosh M K

  44. anil says:

    dear mr suresh,

    thanx for your views, which i find well researched. please advise on my protfolio, where i have been investing through SIPs for last 4 years & have built up to a total amount of Rs 3.5 lacs so far. i aim to create wealth for my long term goals like daughter's higher education (in 2018), daughter's wedding (in 2023) & retirement corpus (in 2024). My present MF portfolio is as under :

    HDFC Top 200

    HDFC Equity

    IDFC Premier Equity

    Reliance Growth

    SUndaram Select Midcap

    SBI Tax Gain

    Sundaram Tax Gain

    Goldman Sachs Gold ETF.

    Thanx in advance.

    Anil

    • Suresh says:

      All are good mutual funds. I suggest making small changes to your portfolio if you are doing SIP’s. 1) Sundaram select mid-cap was a good fund earlier, however the performance has fallen in the last few years and Crisil ranked now as Rank-3.    (2) You can switch over to SBI emerging mutual fund or HDFC mid-cap opps which are Crisil Rank-1 mf schemes. 3) similarly reliance growth fund is crisil rank in diversified sector. Refer my top-10 diversified funds and invest in Crisil-1 mutual funds

  45. Sandeep says:

    Thanks for clear guidelines and Excellant 100% executable views. I was thought this could be one of the share tips as all gives but now i realised this the realistic and more effective tip.

  46. vivek says:

    Hi Suresh,

    I like your stock picks. I am having SIP in the follwoing mutaul funds since lst 3 years and i am long term player with next 10 years horizon with a view of building wealth. Need your advice whether to continue these:

    1. Relaince Growth Fund.

    2. HDFC Top 200 Fund

    3. Reliance Diversified Power sector fund.

    In adition i am also holding units of following funds:

    1. Relaince Equity opportunity fund.

    2.Reliance ELSS fund

    3. HDFC Long term Tax advantage fund.

    4. Franklin India high growth fund.

    5.Icici Pru Focussed bluechip

    Pls advice should i continue with these or swith to  some better fund.

    thanks and warma regards

    Vivek Soni 9711300216

     

    • Suresh says:

      Thanks Vivek for liking my blog site. Here is my view.

      1. Relaince Growth Fund – Crisil ranked as 3 and returns are 5% p.a in the last 3 years. There are better mutual funds than this. Please stay away from such mutual funds

      2. HDFC Top 200 Fund – Cril rank-2 – Returns 8% p.a. If you have already invesed, you can stay with it or invest in others. But do not expect more returns than what you are getting.

      3. Reliance Diversified Power sector fund – Crisil-5 rank; Returns (negative -9% p.a.) in last 3 years. Move out from this

      1. Relaince Equity opportunity fund – This is good mutual fund. Crisil-1 and returns are 15% p.a. in last 3 years. You can continue to stay with this and make new investments

      2.Reliance ELSS fund – For IT purpose OK, you can continue to stay with tihs. Returns are at 9% p.a. in last 3 years

      3. HDFC Long term Tax advantage fund – Looks it is misspelled. There is no tax advanage fund in HDFC.

      4. Franklin India high growth fund – Rank-3 – average performance – 7% returns in last 3 years – if you invested, retain it or stay from it. no fresh investment

      5.Icici Pru Focussed bluechip – This is also one good fund ranked-1 by crisil in largecap – returns are 11% p.a. in last 3 years. You can continue to stay and make fresh investments

      Since you have liked my website, why don't you click on "Facebook Like" button. The links are there at home page on the right side. I would get benefitted with more visitors when you share your views with your friends.

      • Soni says:

        Suresh ji many thanks for your reply. Frankly speaking I was pleasantly surprised by your immediate and detailed response. I appreciate it and once again thanks to you.

        I will like to add that your blog is not only informative and knowledgeable but at the same time provides right advice for the retail investors who want to increase their wealth but due to less knowledge end up losing money in the equity or mutual fund market.

        Any Equity or MF investment which gives a return of less than 12% is infact eating up your wealth.

        Sir, on the basis of your advice I have decided to modify my MF investments. Based on your advice and after reading your recommendations for 2013, I plan to modify my MF portfolio as follows:

        Reliance Diversified Power sector Fund-Growth – To sell all units

        Reliance Growth Fund-Growth – To stop SIP and sell all units.

        Reliance Equity Opportunity – Growth – To stay invested and start SIP

        HDFC Top 200 fund – Growth – To stop SIP. Should I stay invested or shift??

        HDFC Mid Cap opportunity fund – growth – To continue with the SIP

        ICICI Pru Focussed Blue chip fund – growth – To stay invested

        Franklin India High Growth Companies’ fund – growth – To stay invested.

        Request your advice on the following also:

        8. Reliance Tax Saver ELSS Fund – Lock in period is over, Should I exit or hold??

        9.HDFC Long Term Advantage Fund – ELSS – Lock in period is over, should I exit or hold??

        Reliance Banking Fund – Growth – To do fresh investments

        SBI Magnum FMCG Fund – Growth – To do fresh investments

        SBI Magnum Emerging business fund – Growth – To do fresh investments

         I am highly obliged and thankful for your advice. I will keep on reading your blog and keep myself updated with your recommendations.

        With warm regards

        Soni – 9711300216

        • Suresh says:

          Thanks Vivek, 1) SBI FMCG-Sector based fund-Returns are excellent, however dependent on single sector-high risk-high returns; Similar to Reliance banking. About SBI-Magnum-it is good one. You would see SBI Magnum as part of my best midcap mutual funds article scheduled on 7-Jan-12.  Regd ELSS schemes, they provided normal returns like FD. Since you are already got tax benefit and tax period is over, you can switch over to other funds which are performing better.

          • Brien says:

            Suresh,

            I am planning to invest 2.5 lacs/mnth in the stock market as i aim to achieve 1 crore in 3 years time.

            Plz advise if i am on the right track by investing in the stock market to acquire this 1 crore in 3 years ?

          • Suresh says:

            Brien, If you invest Rs 2.5 Lakhs per month for 3 years, your investment value would be Rs 90 Lakhs and you are expecting Rs 1 Crore. Means you are expecting only Rs 10 Lakhs more ? If my understand is right, you just need to get 8% interest rate which you can invest in bank FD and get it. 

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