If you’re in the stock market game, you’re in for a long time of fluctuations, case studies, and assessment of financial statements. There are several kinds of risk-takers in the stock market space. Some lead their day by exchanging low-performing stock for high-priced returns and some stick onto one kind of stock and are the monitored individual who let the money float and invest-reinvest the dividends and returns to enquire and earn better returns. Technically, all traders in the market are going in with intentions to make money, and they have their separate ethics and set of rules that they think are fruitful to the market fluctuations. We’re talking about the investment habits of conservative investors and what are the top three stocks that are “The Philosopher’s Stone” for them.
The best notion that anybody can have as a conservative investor is putting your money into Blue Chip stocks. Because generally, the Blue Chip stocks are known as the safest investment option. Blue Chip stock refers to the stock of a company that is extremely well established and has a good reputation regarding performance in the market. These companies have a very deep pocket and take the lions’ share in market capitalization and dominance. Let’s see the top three stocks to be considered by conservative investors.
State Bank Of India NSE: SBIN
In the banking sector, the growth has been quite steady, and when it comes to the trusted names in terms of banks in India, nobody would defy State Bank Of India’s dominance in this sector. The priority to the quality of assets has been the core deciding factor of investments in the Indian market space, However, as a conservative investor, the growth that SBI stock has shown in the early quarter and mid-year deals, the new peak price isn’t surprising. This is a good time to buy SBI stocks as the fresh breakouts at ₹485 and can go till ₹525. Say some market gurus. Considering the major growth in the banking sector, ICICI NSE: ICICIBANK and Axis bank NSE AXISBANK shares are a very good option to invest in for the long term. Considering their asset regulatory values.
TATA Consultancy Services NSE: TCS
Tata Consultancy Services is the biggest IT company in India, and possibly the world’s largest IT service provider. The reason is one of the best Blue Chip stocks in India for the conservative investor is because TCS has been consistent throughout this year. Not only they are consistent in their existing market space, but they are duly incorporated into the expansion of new technology and ways. Currently, their prime revenue segment is BFSI which is around 31%. Not only this, they have maintained a 5-year RoE of around 35% and an operating profit margin of 28.3%. These figures are very impressive and are likely to give more benefits to the investors of the company. Taking the account of this conglomerate-backed IT company, Reliance NSE RELIANCE and ITC NSE ITC are two similar deep-pocketed Indian companies that will attract conservative investors.
Housing Development Finance Corporation NSE: HDFC
HDFC has been a promising leader in the housing finance sector with a firm distribution network of around 600 outlets. They are known for adequate capitalization, resource allocation, and generation ability, and have a strict underwriting system. They have been giving promising results due to strong management of life and property insurances, asset management, and educational loans. Also has huge liquidity of over ₹40,000 crores. They have the biggest hand in real estate funding. HDFC continues to maintain the most stable asset quality scale in the housing finance sector.
These were the top-tier stocks that a conservative investor can look forward to long-term gains.
FACT: Your money needs to rotate in the market as long as possible to gain the most value that it possibly can.