Long term investments are an integral part of one’s investment journey and are usually considered to be a safer bet compared to intraday and short term investments. Can you grab the egg of an Ostrich, while the mother is around? Looks like a stupid idea, right? The better option will be to wait for the mother ostrich to move away and then grab the egg. The same concept applies to long term investing as well. All you need is patience.
Long term investments can be of various types depending on your investment goal, investment horizon, require capital etc. Some of the common long term investment include Bank Fixed Deposits, Real Estate, Provident Funds etc. While these can be considered as some of the safest investment options, they either provide negligible returns or require very high capital for investing.
What if you get a guide to invest in such a way that you achieve higher returns with a minimal investment requirement of 50k? You must be aware that the final markets have huge impacts after certain events like Diwali, New Year, Monsoon etc. Event based Market Neuron is an investment strategy which revolves around such events and tries to capitalize the impact they have on the stock market. It includes a selection of 6-10 stocks, selected on the basis of fundamental analysis, which you should include in your portfolio. These positions can be exited on achieving the target levels.
There are different event-based Market Neuron. Let us discuss about them in detail.
Let us understand each one of these Market Neurons in detail to help you select the perfect one for you long term investment:
1. Diwali Neuron
Between the health risks of coronavirus, the economic stress of recession, social distances, our lives have changed drastically.
The current environment is completely different we all agree; however, we always hope that this auspicious occasion would bring joy and prosperity because Diwali is one such festival that is recognized all over India. Diwali, which usually falls around October or November marks the beginning of financial eminence. Diwali is said to be the best muhurat to make investments in stocks. In fact, Indices have always shown a tremendous movement in just 10 months after every Diwali, thus making the life of an investor more grandeur.
With the help of Diwali Neuron, you can invest in potential Diwali stocks with a minimal capital of 50 thousand.
2. E-Vehicle – The Future
The Indian automobile industry is the largest growing markets and contributes highly in the country’s manufacturing facilities. The automotive industry in India is further expected to pull up the share of manufacturing in India’s GDP to 25% by 2022. As vehicles have become the phantom in human life, its design, development and existence play a substantial role in the present generation. The auto industry is set to witness major changes in form of Electric Vehicles.
With the government’s outlook for the shift towards an eco-friendly environment by focusing more on the usage of electric vehicles we expect that automakers and other collateral segments would be the major beneficiaries. The E-vehicle Market Neuron has a portfolio of potential electric vehicle stocks for long term investment.
3. High Speed Growth
Growth rate is a measure of the rate at which a company's net earnings have increased during the previous fiscal quarter. Companies in a high growth trajectory have big investment opportunities and they invest their earnings in the business. The increase investment spending year on year is reflected in the continuous increase in profit. Stocks price of these companies show strong price momentum in market and are relatively outperformer in the market. Comparative valuations of these companies are historically on the higher side reflecting strong earnings growth.
This Neuron is built by selecting companies which are showing earnings growth and strong price momentum, thus leading to fast growing stocks.
4. India: 2021
India:2020 Neuron includes stocks that are listed only in National Stock Exchange, and covers almost 90% of the market capitalization, which is the top 700 traded companies in terms of daily liquidity. After carefully studying different investment ideas and strategies, economic data, various news and trends that impact the market and based on the findings, Our Research Experts identify the criteria for stock screening for this Neuron.
The top 700 traded stocks in National Stock Exchange is screened using the above criteria to get a list of potential Neuron member stocks. The list is further screened based on fundamental and technical parameters to select the top 7 stocks for this Neuron.
Conclusion
These are some of the long term investment strategies which can help you in planning an effective long term investment. These are low risk investment strategies, but still have risk incurred in some form or the other. Before investing, it is better to get your risk profile analysis updated from a SEBI registered investment advisor which can help you in having an idea about the amount of risk you should take in the market.
