Long-term investment stocks in India and the US offer the potential for steady growth and compound returns over time. These stocks represent companies with strong fundamentals, a history of consistent performance, and the potential to thrive in the years to come.
The Indian market offers exciting growth prospects, while US stocks provide stability and exposure to established companies. Diversifying your portfolio with long-term stocks from both these markets can be a powerful strategy.
Also, platforms like Appreciate make it easier than ever for Indian investors to access the US stock market. This guide will explore some of the best Long-term Investment stocks to buy in India and the US for 2024, helping you make informed decisions for your financial future.
Introduction to Long-Term Investment Stocks
Long-term investment stocks are essential for investors seeking sustainable growth and steady income over extended periods. These stocks represent shares in well-established companies with strong fundamentals, competitive advantages, and proven track records of performance through various economic cycles.
When selecting long-term investment stocks, investors typically look for factors such as:
- Consistent revenue and earnings growth
- Strong market position
- Capable management
- Healthy balance sheets
Companies that pay regular and growing dividends are often favoured because they have the potential to provide both capital appreciation and income. Plus, the benefits of long-term stock investments include compounded returns, lower transaction costs, and potential tax advantages.
Why Invest in Long-Term Stocks?
Investing in long-term stocks offers several compelling advantages, including:
- Potential for Higher Returns: Long-term investing allows you to capitalise on the market’s overall upward trajectory, potentially yielding higher returns compared to shorter-term investments or other asset classes like bonds, cash, or real estate.
- Time in the Market: Instead of predicting short-term market movements тАУ a notoriously difficult task тАУ investors can focus on the fundamentals of quality companies and benefit from their growth over time.
- Lower Taxes: In many jurisdictions, including India, long-term capital gains are taxed lower than short-term gains.
- Power of Compounding: As your investments generate returns, those returns are reinvested, potentially earning additional returns. Over time, this compounding effect can lead to significant wealth accumulation, especially when reinvesting dividends.
Best Long-Term Investment Stocks in India 2024
Here’s a curated list of the best long-term investment stocks in India for 2024, featuring companies across various sectors that have demonstrated consistent performance and promise sustained growth.
Aptus Value Housing Finance India Ltd
Focused on providing affordable housing finance to low and middle-income segments, Aptus Value Housing Finance India Ltd aims to promote home ownership in underserved markets.
- A niche player in the growing affordable housing finance sector
- Solid financials with a 42.53% 5-year average net profit margin
- Strong historical revenue growth
- Potential for expansion as demand for affordable housing increases
Central Depository Services (India) Ltd
As one of India’s leading securities depositories, Central Depository Services (India) Ltd plays a crucial role in ensuring the smooth functioning of the securities market.
- An essential player in India’s financial infrastructure
- Strong financial performance with a 45.87% 5-year average net profit margin
- Impressive historical revenue and EPS growth
- Potential for continued growth as India’s securities market expands
Five-Star Business Finance Ltd
Five-Star Business Finance Ltd. provides secured business loans to micro-entrepreneurs and self-employed individuals, focusing on lending to underserved segments in India.
- Niche player in India’s growing microfinance sector
- Impressive 36.22% 5-year average net profit margin
- Historical solid revenue and EPS growth
- Potential for expansion as financial inclusion efforts increase in India
HDFC Asset Management Company Ltd
As one of India’s leading mutual fund houses, HDFC Asset Management Company Ltd offers a diverse range of investment products, leveraging its joint venture with Standard Life Investments Limited.
- One of the top asset management companies in India
- Impressive 59.02% 5-year average net profit margin
- Steady growth in revenue and EPS over the past five years
- Strong brand recognition and extensive distribution network
Indian Energy Exchange Ltd
Indian Energy Exchange Ltd is India’s premier electricity exchange, facilitating trading in various electricity products since 2008. The company’s automated platform ensures efficient and transparent electricity trading.
- Market leader in India’s electricity exchange sector
- Strong financial metrics with a 61.01% 5-year average net profit margin
- Potential for growth as India’s energy market evolves and expands
- Consistent historical revenue and EPS growth
Nippon Life India Asset Management Ltd
Part of the Nippon Life Insurance group, this company is a key player in India’s asset management industry, providing various financial products and services.
- Significant presence in India’s growing asset management sector
- Solid financials with a 46.65% 5-year average net profit margin
- Consistent EPS growth over the past five years
- Potential for expansion as India’s investment landscape matures
Oberoi Realty Ltd
Known for its high-quality residential, commercial, and retail projects, Oberoi Realty Ltd is a leading real estate developer focusing on premium developments in Mumbai.
- Respected brand in India’s luxury real estate market
- Strong financial performance with a 36.50% 5-year average net profit margin
- Consistent growth in revenue and EPS
- Potential for long-term appreciation as India’s urban landscapes evolve
SJVN Ltd
In the renewable energy sector, SJVN Ltd focuses on hydroelectric power generation as a joint venture between the Government of India and the Government of Himachal Pradesh.
- A key player in India’s push for sustainable energy
- Robust 41.54% 5-year average net profit margin
- Potential for growth as India increases focus on renewable energy
- Government backing provides stability and potential for expansion
Sun TV Network Ltd
As one of India’s largest television networks, Sun TV Network Ltd operates various channels in multiple languages, reaching millions of households across India and abroad.
- The dominant player in India’s media and entertainment industry
- Strong financials with a 40.88% 5-year average net profit margin
- Consistent profitability and dividend payouts
- Potential for growth through digital expansion and content diversification
UTI Asset Management Company Ltd
One of India’s oldest and largest asset management companies, UTI Asset Management Company Ltd. offers a wide range of investment solutions to meet diverse investor needs.
- Well-established brand in India’s asset management industry
- Solid 38.14% 5-year average net profit margin
- Consistent historical revenue and EPS growth
- Potential for expansion as India’s investment culture grows
Best Long-Term Investment Stocks in the US 2024
Here’s a curated list of top US stocks that show promise for sustained performance and value creation in 2024 and beyond:
Apple (AAPL)
Apple continues to dominate the tech industry with its innovative products and services. The company’s loyal customer base and expanding ecosystem of devices and services position it well for long-term growth.
- Market Cap: $3.27 trillion
- YTD Performance: 9.69%
- Gross Margin: 45.59%
- Dividend Yield: 0.43%
UnitedHealth Group (UNH)
As the largest healthcare company in the US by revenue, UnitedHealth Group offers a strong combination of health insurance and healthcare services through its UnitedHealthcare and Optum divisions.
- Market Cap: $527.64 billion
- YTD Performance: 9.69%
- Q4 2023 Revenue: Nearly $100 billion (8.56% year-over-year growth)
- Q4 2023 Earnings Per Share: $6.9
Berkshire Hathaway (BRK.A/BRK.B)
Led by legendary investor Warren Buffett, Berkshire Hathaway offers exposure to a diverse portfolio of companies and investments across various sectors.
- Market Cap: $885 billion
- Key Holdings: Insurance, railroads, energy, and a large stock portfolio
Elevance Health (ELV)
Formerly known as Anthem, Elevance Health is a major player in the US health insurance market, serving over 117 million people through various health plans.
- Market Cap: $124.41 billion
- YTD Performance: 13.33%
- Q2 2024 Operating Revenue Growth: 0.96% year-over-year
- Recent Focus: Returning excess cash to shareholders
Applied Materials (AMAT)
As a leading equipment supplier to the semiconductor industry, Applied Materials is well-positioned to benefit from the growing demand for advanced chips in various technologies.
- Market Cap: $182.21 billion
- YTD Performance: 36.46%
- Fiscal 2023 Revenue Growth: 3%
- Growth Areas: Internet of Things, wireless communications, next-generation automobiles
Coca-Cola (KO)
Coca-Cola’s global brand strength and diverse beverage portfolio make it a stable long-term investment choice. The company has consistently increased its dividend for over six decades.
- Market Cap: $270.8 billion
- Product Range: Soft drinks, juices, sports drinks, and bottled water
- Notable: Among the top 10 dividend stocks on the market
Johnson & Johnson (JNJ)
After spinning off its consumer health products into Kenvue, Johnson & Johnson focuses on its solid pharmaceuticals and medical devices segments, positioning itself for better growth.
- Market Cap: $349.9 billion
- Key Segments: Pharmaceuticals and medical devices
- Notable Products: Remicade, Zytiga, Stelara
American Express (AXP)
American Express benefits from both credit card fees and transaction processing fees, and it is strongly appealing to younger generations of consumers.
- Market Cap: $161.2 billion
- Recent Growth: 75% of new gold and platinum card accounts in 2023 were opened by millennials and Gen Z
- Dividend: 17% increase announced in March 2024
Alibaba Group Holding Ltd (BABA)
As a leading e-commerce and technology company in China, Alibaba offers exposure to the growing Chinese consumer market and various tech-driven businesses.
- Market Cap: $178.29 billion
- YTD Performance: -3.97%
- Product Range: E-commerce, cloud computing, digital media, and entertainment
Cisco Systems (CSCO)
Cisco’s diverse portfolio of networking, security, and cloud computing technologies positions it well in the evolving digital infrastructure landscape.
- Market Cap: $195.48 billion
- YTD Performance: -4.35%
- Fiscal Q4 Revenue Growth: 16% year-over-year
- Software Revenue Growth: 17% year-over-year
How to Evaluate Long-term Investment Stocks?
Evaluating stocks for long-term investment requires a thorough analysis of various factors to identify companies with strong growth potential and resilience. Here’s a comprehensive approach to assessing long-term investment stocks:
- Financial Health: A strong balance sheet with substantial assets and manageable debt levels is crucial. So, look for consistent revenue and earnings growth over multiple years, which indicates stability and potential for future expansion.
- Management Quality: Research the track record of key executives, looking for a history of successful decision-making and value creation. Also, seek out management teams with a clear vision and well-articulated strategies for long-term growth.
- Competitive Advantage: Identify what sets the company apart from its competitors. This could be a unique product, proprietary technology, strong brand recognition, or exceptional customer service.
- Industry Analysis: Assess the industry’s growth prospects and potential challenges, including technological disruptions, regulatory changes, and economic factors.
- Valuation Metrics: The Price-to-Earnings (P/E) ratio is a common starting point, but other metrics, such as Price-to-Book (P/B) and Price-to-Sales (P/S) ratios, are also considered, especially for asset-heavy or growth-oriented companies.
Benefits of Investing Through Appreciate Wealth
Appreciate Wealth offers a comprehensive platform for investors looking to diversify their portfolios with Indian and US long-term stocks. This innovative app combines accessibility with powerful features, making it an attractive option for all types of investors.
Here are the key benefits of using Appreciate Wealth for your investment journey:
- Global Market Access: Appreciate Wealth provides seamless access to both Indian and US stock markets, allowing investors to build a truly diversified portfolio.
- Real-Time Market Data: The app offers real-time market data for both Indian and US stocks, ensuring that investors have the most up-to-date information at their fingertips.
- Low Entry Barrier: With the ability to start investing with as little as тВ╣1, Appreciate Wealth makes stock market investment accessible to a wide range of investors.
- Fractional Shares: The app’s fractional share feature allows investors to buy partial shares of high-priced stocks in India and the US.
- Competitive Currency Conversion: Appreciate Wealth offers competitive INR to USD conversion rates for US stock investments, often better than traditional banks.
- Low Transaction Fees: The app boasts low transaction fees for Indian and US stock trades, helping investors keep more of their returns.
Conclusion
Long-term investment stocks in India and the US offer investors significant wealth creation and portfolio growth opportunities. These markets present various companies across various sectors, from established blue-chip corporations to innovative tech giants and emerging market leaders.
Moreover, platforms like Appreciate can simplify the investment process, offering tools and insights for both markets. However, itтАЩs important to note that all investments carry risks, and diversification across markets, sectors, and asset classes remains vital.
Note: Once you’ve made the decision to invest in shares, the next critical step is to keep a close watch on how they perform in the market and actively manage your portfolio. By using our Share Price Average Calculator, you can effortlessly compute the average price of all your purchases, whether they were made at different times or prices. You can use this calculator before you buy more shares of a stock you already own, so that you have a better idea of the average price you will have paid for all shares of that stock.
Long-Term Investment Stocks – FAQs
1. What are the best long-term investment stocks?
The best long-term investment stocks typically include well-established companies with solid financials, competitive advantages, and consistent growth. Examples include Apple, Microsoft, and Johnson & Johnson.
2. How do I choose stocks for long-term investment?
Choose stocks based on company fundamentals, financial health, competitive position, management quality, and growth potential. Look for consistent performance over time and consider industry trends.
3. Which stocks are expected to grow the most by 2025 in India and the US?
In India, IT, healthcare, and renewable energy sectors show promise. In the US, tech giants and healthcare companies are expected to lead growth.
4. What are the top dividend-paying stocks for long-term investment?
Top dividend-paying stocks often include established companies like Coca-Cola, Procter & Gamble, Johnson & Johnson in the US, and ITC, Hindustan Unilever in India.
5. How can I invest in US stocks from India?
Use international brokers or apps like Appreciate that offer access to US markets. Ensure compliance with RBI regulations on overseas investments.
6. Which US stocks are recommended for long-term investment?
Recommended US stocks for long-term investment often include blue-chip companies like Amazon, Google, Berkshire Hathaway, and Visa.
7. What is the process to buy stocks under $100 for long-term investment?
Research companies with stock prices under $100, assess their fundamentals and growth potential, and then use a brokerage account or investment app to purchase shares.
8. How can I find multi-bagger stocks for long-term investment?
Look for companies with strong growth potential in emerging sectors, solid financials, and innovative products or services. Also, conduct thorough research and diversify investments.
9. What are the best sectors to invest in for long-term growth?
Technology, healthcare, renewable energy, and e-commerce are considered promising sectors for long-term growth.
10. How do I create a diversified long-term investment portfolio?
Diversify across different sectors, company sizes, and geographic regions. Include a good blend of growth and value stocks, and consider adding bonds for stability.
11. What are the risks involved in long-term stock investments?
Risks include market volatility, company-specific issues, economic downturns, and sector-wide challenges. Long-term investments can also face inflation and opportunity cost risks.
12. How often should I review my long-term investment portfolio?
Review your portfolio at least annually or semi-annually. Avoid frequent changes, but rebalance when necessary to maintain your desired asset allocation.
13. What are the tax implications of long-term stock investments?
In many countries, long-term investments (over a year) often qualify for lower tax rates for capital gains. Dividends may be taxed differently. Consult a tax professional for specific advice.
14. Which long-term stocks have historically performed well?
Companies like Coca-Cola, Johnson & Johnson, and Procter & Gamble have historically performed well over long periods.
15. How can I stay updated with market trends for long-term investments?
Follow financial news, read annual reports, attend investor presentations, and use stock analysis tools. Consider subscribing to reputable financial publications.
16. Is it advisable to invest in penny stocks for long-term growth?
Penny stocks are generally considered high-risk and not advisable for long-term investments. Instead, look for established companies with proven track records.
17. What are the best resources for researching long-term investment stocks?
Use financial websites, company annual reports, SEC filings, and reputable investment research platforms. Books by renowned investors can also provide valuable insights.
18. How does Appreciate Wealth support long-term investors?
Appreciate Wealth offers market analysis tools, real-time data, educational resources, and expert insights to support informed long-term investment decisions.
19. Can I automate investments in long-term stocks through Appreciate Wealth?
Appreciate Wealth allows for setting up recurring investments and offers features like dollar-cost averaging for long-term stock investments.
20. What are the key differences between investing in Indian and US long-term stocks?
Key differences include market regulations, currency exchange considerations, different economic drivers, and varying market maturity and volatility levels between Indian and US stocks.
