Low-Risk Stock Options

When you plan for creating wealth on a long-term, you must think of investing in low-risk stocks. Most of these stocks can offer you returns better than a fixed deposit. Get to know the details about why these stocks are the best considered for investment. 

1.       HDFC BANK

In the last ten years, the HDFC bank’s deposits have seen growth on an average of 30 percent CAGR.
Only within the last decade, the HDFC bank’s stocks have risen by 664 percent. The dividend-price declared by the company is Rs 55/-

In India, the banking sector has a bright future. Both technology and government focus is on the banking industry, and you can invest with banks for more returns. HDFC bank’s position can either move up or down based on the overall movement in the market. But it will anyways manage to hold its price growth inline.

2.       ITC

Again in the last ten years, ITC’s stock prices have seen a yearly growth of 22 percent CAGR on an average. Last ten years is considered because it is the slowest period as reviewed by the Indian markets). When you know about the dividends, it gives you more lessons. The three hundred INR ITC stocks gave profits more than sixty INR in the past last ten years. Which means, Ten INR has raised on the stock value in ten years period.

This company has an exclusive legal sanction to sell a product that leads to addiction. Permissions like that will never let the sales to curb. Even if the price increases, people don’t mind spending few extra amounts for the product.

3.       INFOSYS

Infosys stock bought for 490 INR in July 2007 has given over 400 INR in dividends. The stock at present trades at one thousand INR and is facing a difficult time. If you think should you purchase their shares, then you must know the statistics for the last ten years. The historical PE of 19.5 is now obtainable at a trailing PE of 15. But the EPS of the company remains around 15 INR/share during the recent few quarters. The sharp correction has happened in the stock prices.

4.       LUPIN

Even after considering the stock fall in the last two years from 2100 INR to 1030 INR, Lupin’s stock price has gone up to 1100 percent in the last decade.

Pharmaceutical companies in India prepare some of the cheapest drugs. But, sells them at a decent margin in developed countries. The operational net revenue of the pharmaceutical businesses in India has seen growth between 18 and 24 percent CAGR in the recent ten years. This will remain almost same for more years to go. Hence it is safe to invest in pharma company stocks.

Given a data between 2012 and 2014, the need for oncology drugs has made most of the large pharma players to the join the race.  Lupin stands on top because they have exposure to the US markets.

Check for brokers who offer Lowest Brokerage in India and consider investing in all the four companies stocks for making more money at low risk. Especially ITC and Lupin markets will never have a dearth and needless to say about banking and IT industry. Invest in low-risk stocks to get stable returns.


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