Best Stocks For Beginners (2024)

The Indian Stock Market is a great place to start investing money, especially for beginners. Moreover, it offers an excellent opportunity for people who want to enter the market without worrying about the technicalities of buying and selling stocks.

The stock market in India offers many advantages to investors. First, it allows them to invest in companies with products or services that they can use personally. This means that even if you are not a finance expert, you can still make money by investing in stocks.

Another advantage is that many different types of stocks are available on this market, so if you do not know what kind of stock you should buy, there will be something suitable for your needs.

Despite gathering knowledge, starting the stock investment journey is often challenging. Deciding which stocks to go for is a complex decision that many beginners face. Hence, in this blog, we have compiled a list of the best stocks for beginners India that one can consider to invest in.

Best Stocks To Buy For Beginners In India

Factors To Consider Before Investing In The Stock Market

Buying stock can be a great way to invest in the market, but it's not for everyone. Before you invest your money, you must understand what you're getting into.

Here are some key factors to check before buying a stock:

• Investment Horizon

The investment horizon is the period your investment will grow or decline. You can buy stocks with an investment horizon of less than five years, but investing in stocks with longer horizons might be more beneficial.

• Financial Goals

You may have different financial goals for your investments than someone else does. For example, if you want to retire sooner rather than later, buying stocks that offer higher returns over a shorter period might be best for your situation.

On the other hand, buying stocks with longer investment horizons might be better suited if you aim to accumulate wealth over time and not worry about when you'll retire or how much money you'll have by then.

• Risk Appetite

If you are searching for the best stocks for beginners with little money, it's essential to consider how much risk you're willing to take on with your investment strategy. Some people prefer high-risk investments because they can make money quickly if the market turns around, but others want steady returns over time without taking too many risks.

When deciding whether or not to invest in stocks, it helps to think about how much money you have available for risk—and how confident you are about taking advantage of opportunities in the market when they arise (or fail).

• Size of the Company

When considering investing in stocks, the first thing that comes to mind is the company's size. Evaluating a company's size before investing in it is essential because it will influence its performance over time.

A large company will have more resources to invest in research and development, which means it can become more profitable over time. You should also compare two or three different companies and their performances to decide which company is better for your portfolio.

• Stock Performance

Suppose you are searching for the best companies to invest in India for beginners. In that case, it is essential to look at the stock performance of any given company before deciding whether or not it's worth buying shares. You should also check how well each stock performance has been in the past few years.

If they have been performing poorly over time, then there is no point in investing in them because they are likely to lose even more money.

Best Stocks To Invest In For Beginners: Overview

Here is a quick overview of the stocks in which a beginner can invest in-

1) Bajaj Finserv Ltd.

Bajaj Finserv Limited is a holding company for various financial services businesses. The Company promotes financial services, such as finance, insurance, and wealth management, through its investments in subsidiaries and joint ventures.

It is also engaged in generating power through wind turbines, a renewable energy source. Its segments include life insurance, general insurance, windmill, retail financing, and investments.

2) Coforge Ltd.

Coforge Limited is an India-based information technology (IT) solution company. It is engaged in in-application development and maintenance, managed services, cloud computing, and outsourcing business processes.

The Company provides computer programming consultancy and related activities. Its geographical segments include the Americas, Europe, Middle East and Africa (EMEA), Asia Pacific (APAC), and India.

It offers various technologies, such as product engineering, salesforce ecosystem, digital integration, digital services, artificial intelligence, data and insight, digital process automation, cloud and infrastructure management services, cybersecurity services, systems etc.

3) Infosys Ltd.

Infosys Limited is engaged in consulting, technology, outsourcing, and next-generation digital services. Its segments are enterprises in Financial Services and Insurance; enterprises in Manufacturing; enterprises in Retail, Consumer Packaged Goods and Logistics; enterprises in Energy, Utilities, Resources and Services; enterprises in Communication, Telecom OEM and Media; enterprises in HiTech; enterprises in Life Sciences and Healthcare; and all other segments.

All other segments represent the operating segments of businesses in India, Japan, China, Infosys Public Services, and other enterprises in public services. Hence, it is one of best stocks for beginners with little money in India.

4) Jubilant Food Ltd.

Jubilant FoodWorks Limited is an India-based food service company. The Company operates through its food and beverages segment. The Company is retailed through international and home-grown brands addressing different food market segments. Its global brands include Domino's Pizza, Dunkin' Donuts and Popeyes.

5) TCNS Clothing Co.

TCNS Clothing Co. Limited is an India-based women's branded-apparel company. The Company is primarily engaged in the business of women's apparel and accessories under the brand names W, Aurelia, Wishful and Elleven.

Its product portfolio includes top wear, bottom wear, drapes, combination sets, footwear and accessories that cater to a range of wardrobe requirements of Indian women, including casual wear, work wear and occasion wear.

Its W brand focuses on modern Indian woman's work, casual, and occasion wear requirements. Its Aurelia brand is a contemporary ethnic wear brand.

Conclusion

Many resources are available to educate yourself on the basics of stock market investing so you can take control of your financial future. These tutorials and guides, which include beginner-friendly information on technical analysis, will put you on the right track when picking stocks that meet your goals.

The best shares for beginners are easy to research, liquid enough not to be overly risky and with a history of paying regular dividends.

To read the RA disclaimer, please clickhere
Research Analyst - Himanshu Sinha