Investing in stocks is not rocket science. On the other hand, people are reluctant to invest in the stock market. Historical data and analysis have shown that investing in the stock market is superior to other traditional instruments such as fixed deposits, post office monthly income schemes, provident fund (PPF), gold, etc.
In our view, stocks that generate income and are popular with investors are driven not only by fundamentals (strong financial position and strong management), but also by macroeconomic factors. These stocks are suitable for both bottom-up and top-down investing.
Factors to Consider Before Investing in the Top 5 Stocks to Buy 2023
- Market capitalization refers to the value of a company as determined by the stock market. It is defined as the total market capitalization of all outstanding shares.
- To calculate a company’s market capitalization, multiply the number of shares outstanding by the current market value of the stock.
Companies are typically categorized by market capitalization: large cap ($10 billion or more), mid cap ($2 billion to $10 billion), and small cap ($300 million to $2 billion).
- Market capitalization is often used to determine the size of a company and then evaluate that company’s financial performance relative to other companies of different sizes.
- When investing, companies with larger market capitalizations are generally safer investments because they represent more mature companies and typically have a longer history in business.
Long-term investments with favorable price-to-earnings ratios should be sought after as they might prove to be beneficial.
Consistency in Profit
A decreasing number of shares with the same profit may indicate greater value for an investor.
Make sure you consider your reasons for buying stocks before buying and look out for SEBI (Securities and Exchange Board of India) registered stockbrokers as this is the safest way to deal with stocks.
Choose a broker
There are several key factors to consider when choosing the best online broker for you, especially with so many options to choose from. When using a stock trading or investing platform, keep the following in mind:
- Your personal goals and trading needs.
- Commissions and Fees.
- Account and Transaction Limits.
5 Top stocks to Invest in 2022
1. Reliance Industries
Reliance Industries Limited is an India-based company, which operates in the Oil to Chemicals (02C), Oil and Gas, Retail, Digital Services, and Financial Services segments.
The company is ranked 100th on the Fortune Global 500 list of the world’s biggest corporations as of 2022. Reliance continues to be India’s largest exporter, accounting for 7% of India’s total merchandise exports and it has access to markets in over 100 countries.
2.Tata Consultancy Services
Part of the Tata Group, India’s largest multinational conglomerate, TCS employs over 592,000 of the world’s most educated consultants in 55 countries. The company has consolidated sales of US$25.7 billion for the year ended March 31, 2022 and is listed on India’s BSE (formerly Bombay Stock Exchange) and NSE (National Stock Exchange).
TCS provides a portfolio of consulting-oriented, cognitive-enabled integrated business, technology and engineering services and solutions. This is achieved through its unique Location Independent Agile™ delivery model, recognized as the benchmark for software development excellence.
3. HDFC Bank
HDFC Bank Limited (The Bank) is a privately held India-based bank and one of the best stocks to buy for the long term in India today. The bank provides a range of banking services covering commercial and investment banking on the wholesale side and transaction/branch banking on the retail side.
HDFC Bank offers a range of products and services including Wholesale Banking, Retail Banking, Funds, Car Loans, Two Wheeler Loans, Personal Loans, Property Loans, Consumer Permanent Loans, Lifestyle Loans and Credit Cards. There are also Payzapp, SmartBUY and other digital products
4. Hindustan Unilever Limited
Hindustan Unilever Limited is an India-based consumer goods company. The Company’s segments are Home Care, which includes Laundry Bars, Laundry Powder, Laundry Detergent, Scoremeter, Water Business and Detergent Business; Beauty and Personal Care, which includes Oral Care, Skin Care, Bar Soap, Hair Care, Deodorant, Products in the body powder, make-up and salon services categories; food and refreshment, including staple foods, culinary products, tea, coffee, health drinks, ice cream and frozen desserts, and others, including export products and baby care products
5. Infosys Limited
Active in consulting, technology, outsourcing and next-generation digital services, Infosys Limited is recognized as one of the best long-term penny stocks.
Its segments are financial services and insurance companies; manufacturing companies; companies in the retail, consumer goods and logistics industries; energy, utilities, resources and services companies; communications, telecommunications OEM and media companies; high technology companies; life sciences and healthcare Corporation; and all other parts.