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Investing for the first time? Top 5 stocks for first time investors

01 Dec 2023

Introduction

Investing in Indian stock markets in a disciplined manner can help you build wealth. With stock market investing, you can participate in various companies' growth stories. Picking the right stocks can be tricky if you are a first-time investor. But don't worry. We bring you the top 5 stocks you can invest in if you are a maiden stock investor. 

Top 5 Stocks for First-time Investors

1. Bajaj Finance Ltd

A subsidiary of Bajaj Finserv, Bajaj Finance Ltd is an Indian non-banking finance company headquartered in Pune. Investing in its stock can help you make considerable profits in the long run. While the 1-year trailing return of the stock stands at 17.98%, 5-year returns are even higher at 26.71%. 

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The company's stock is valued in the market, and due to its strong business model, it has achieved good growth over the years. Because of its diverse business, investing in this stock can be profitable for you in the long run. 

2. Coforge Ltd

Coforge Ltd deals with cloud computing, in-application development, and outsourcing business processes. It is also into product engineering, artificial intelligence, cybersecurity, and digital process automation. Over the years, the company has registered healthy growth, and so has its stock. 

The company's stock's 1-year and 5-year trailing returns stand at 15.70% and 31.59%. Because of this, it is in our list of top 5 stocks for first-time investors. Investing in this company's stock can help you build wealth in the long run. 

3. Infosys Ltd

Infosys Ltd is next in the list of top 5 stocks for first-time investors. Infosys Ltd needs no introduction. It is one of India's biggest IT companies with a global presence. Headquartered in Bangalore, the company's value is worth billions of dollars. Its essential products and services include NIA, engineering services, and blockchain. The company's stocks are among the most sought-after stocks on the BSE and NSE.

The 1-year trailing return is the negative territory at -9.48%. But the 3-year and 5-year returns are positive and impressive. While the 3-year trailing return stands at 23.51%, the 5-year returns stand at 16.40%. Given its market presence and goodwill, investing in its stocks can be profitable for you in the long run.

4. Jubilant FoodWorks Ltd

Jubilant FoodWorks Limited is a renowned food service company headquartered in India. The company enjoys a dominant presence with a focus on the food and beverages industry. Jubilant FoodWorks operates through various brands in global and local markets.

The company takes pride in its global portfolio of brands. Some are the famous Domino's Pizza, Dunkin' Donuts, and Popeyes. These brands have gained immense popularity. They are synonymous with exceptional quality, delicious food, and excellent customer service. 

You can invest in this company's stock to get exposure to India's food and beverage sector. While the 1-year trailing return is a little low at 2.3%, the 3-year and 5-year trailing returns are impressive at 14.71% and 13.01%.

5. ITC Ltd

ITC, a prominent FMCG marketer in India, has been operating since 1910, making it a long-standing player in the market. With its diverse portfolio, ITC has established itself as an excellent investment option for beginners. The company's wide range of business interests includes tobacco, hotels, paperboards, paper and packaging, and agribusiness, allowing investors to benefit from its diversified revenue streams.

ITC's success is due to its strong brand presence and various popular and well-known product lines. Some notable brands under the ITC are Aashirvaad, Sunfeast, Bingo, ITC Master Chef, Fabelle, Sunbean, Fiama, Savlon, Classmate, and Paperkraft. These brands have gained immense consumer recognition and trust, contributing to ITC's growth and profitability. 

1-year trailing returns of ITC stocks stand at a staggering 62.88%, while 5-year returns clock 9.93%. Because of such high returns, we have included it in our top 5 stocks for first-time investors. 

In Conclusion

The top five stocks discussed provide an excellent starting point for first-time investors. These stocks offer a combination of stability, growth potential, and long-term profitability. While investing always carries inherent risks, conducting thorough research, diversifying one's portfolio, and seeking advice from financial professionals can help mitigate those risks. 

Remember, investing is a long-term commitment, and patience and perseverance are crucial to realizing the rewards of a well-rounded investment strategy.

You need Demat and Trading accounts to invest in stock markets. Open a Demat account today with Motilal Oswal and begin your stock market investing journey.

 

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account 

 

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