Last Updated on January 22, 2024 by ethinos
A long-term investment in stocks is generally referred to the holding of assets for an extended period that is more than one year, though there is no specific timeframe for it. The long-term investment can extend to ten years, or even 30 years. The acceptable time period of a long-term investment is usually between five to ten years.
Long-term stock investment is also referred to as buy and hold strategy. A long-term investment is not impacted by short-term market fluctuations and, thus, does not require to be regularly monitored. Also when selecting the best long-term stocks for investment, you must look for companies that have a history of stability and which operate in steady, low-changing industries.
Whether to invest in long-term stocks or not depends on the investor’s priorities, risk appetite and investment strategy. You can invest in stocks for long term in order to expand your investment portfolio.
Table of Content
Best Long Term Stocks to Buy in India in 2023
Here is the list of best long term shares to buy in India and their performance history over the past five years. This table will assist you in mapping the performance of various such stocks in India.
| Stock Name | Sector | Latest Price (October 18, 2023) | 1 Year (October 19, 2022) | 5 Years (October 19, 2018) |
| Reliance Industries | Multi-sector | ₹2312 | ₹2493 | ₹1090 |
| Tata Steel | Metal | ₹125 | ₹100 | ₹55 |
| ITC | FMCG | ₹449 | ₹346 | ₹289 |
| TCS | IT | ₹3469 | ₹3121 | ₹1913 |
| Larsen and Toubro Ltd | Multi-sector | ₹3025 | ₹1904 | ₹1206 |
| Bharti Airtel Ltd | Telecom | ₹950 | ₹783 | ₹258 |
| Hindustan Unilever | FMCG | ₹2536 | ₹2583 | ₹1578 |
| HCL | IT | ₹1266 | ₹995 | ₹479 |
Introduction to Best Long Term Stocks Companies in India
Here is a brief introduction to the above listed companies which will help you in getting familiar with them.
Reliance Industries
Founded in 1958, Reliance Industries is one of the most renowned companies in India. Reliance was founded by legendary industrialist Dhirubhai Ambani and is now headed by his son Mukesh Ambani. From its humble origin as a small trading firm, Reliance now is the largest private sector corporation in India. It has been ranked at 88 among the Fortune 500 companies. Its business portfolio includes energy, materials, retail, entertainment and digital services. Reliance Industries had generated a revenue of ₹974,864 crore in financial year 2022-23.
Also Read: Reliance Industries Ltd.
Tata Steel
Tata Steel is part of India’s reputed Tata Group, which was founded in 1907. The company has an annual crude steel capacity of 34 million tonnes per annum (MnTPA) and is one of the world’s most geographically diversified steel producers. Tata Steel runs fully integrated operations from mining to the manufacturing and marketing of finished products. Tata Steel, along with its subsidiaries and joint ventures, is spread across five continents with an employee base of over 65,000. It recorded a consolidated turnover of ₹1,56,294 crore in the financial year ending March 31, 2021.
Also Read: Tata Steel- A Comprehensive Guide
ITC
Founded in 1910 and named Imperial Tobacco Company, the company generated a whopping revenue of ₹78,498 crore in 2023 which made it the biggest FMCG company in India. The company crossed the ₹600,000 crore market cap in July 2023. Though initially an FMCG business, ITC now has a diversified presence in hotels, Paperboards & Specialty Papers, Packaging, and Agri-Business. The company has 200 manufacturing units, 119 hotels across 80 locations and 25 FMCG brands.
TCS
TCS, or the TATA Consultancy Services, is an IT services, consulting and business solutions company that has partnered with many of the leading businesses for the last five decades. Its services include Cloud, Data and Analytics, Network Solutions and Services, Cognitive Business Operations, Enterprise Solutions, IoT and Digital Engineering, and more. It has more than 600,000 employees.
Also Read: Tata Consultancy Services
Larsen and Toubro Ltd
Larsen and Toubro is headquartered in Mumbai and is one of the largest companies in India. It was founded in 1938. The company’s business divisions include real estate, technology, engineering, construction, and manufacturing. The company directly and indirectly employs more than 250,000 individuals, among them 45,000 permanent employees. Larsen and Toubro operates in over 50 countries
Bharti Airtel Ltd
Bharti Airtel, or simply Airtel, was founded in 1995 and is headquartered in New Delhi. The company has over 500 million subscribers/customers across 17 countries of the world. Airtel is ranked among the top three mobile network operators in the world, with a coverage network that covers two billion people. It is India’s largest integrated communications solutions provider and the second largest mobile operator in Africa. The company’s retail portfolio includes high speed 4G/5G mobile broadband, Airtel Xstream Fiber, streaming services spanning music and video, digital payments and financial services.
Hindustan Unilever
It is one of the largest FMCG companies in India with more than 50 brands across 16 categories and a history that spans over nine decades. Hindustan Unilever was founded in 1933 and is headquartered in Mumbai. It manufactures a whopping 65 billion units annually that are made available through an efficient network of nine million retail outlets and digital commerce platforms. The company clocked an annual turnover of ₹58,154 crore in the 2022-23 financial year while 19 of its brands generated a turnover of ₹1000 crore each. Hindustan Unilever has more than 21000 employees.
Also Read: Hindustan Unilever Ltd. – Q2 Results
HCL Tech
HCL Technologies, formerly Hindustan Computer Private Limited, was founded in 1976 as one of India’s first tech startups. It specialises in services like Application support and maintenance, data and analytics, digital consulting, digital integration and process automation, cybersecurity, cognitive automation, and more. It has more than 223,000 employees, 210 delivery centres, 60 innovative labs, more than 10,000 clients and 2000 patents. The company was founded by Shiv Nadar.
Also Read: HCL Technologies Ltd.
Healthy Investment Tips
To invest in stocks for a long term is a decision which you have to take based on your investment strategy and requirement for portfolio diversification. There is no thumb-rule for this buy and hold strategy. If your investment goal is met, you can sell off your long-term stock as soon as you can.
Make sure that you are able to withstand the temporary market fluctuations and stay long enough that you do not risk facing the losses. But, in the first place, you must also be careful in choosing the best long term stocks. Avoid making emotional decisions. Try to understand the functioning and behaviour of the stock markets.
Frequently Asked Questions About Best Long Term Stocks
Anyone can invest in long term shares. However, you must always diversify your investment portfolio and invest according to your investment goals.
No. There are always risks associated with investments in shares, whether it is a long term investment or a short term investment. You must understand the risk associated with investment in shares carefully to make an informed decision.
The factor determining the best long-term stock is its history of stability and stable market demand.
