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Ajit Mishra  | Answer  |Ask -

Answered on Mar 09, 2022

Ashok Question by Ashok on Mar 09, 2022Hindi

Kindly suggest to me different sectors of stocks for good returns for the period of long term 3 to 5 years investment of 10 lakhs. We will be grateful for your suggestion.

Ans: You can invest in Banking – Axis bank and ICICI Bank; Pharma – Biocon; Auto – M&M and Bajaj Auto; FMCG – Britannia and Godrej CP; Consumer Durables – Polycab and V-Guard; Cement – Ramco Cements and JK Lakshmi; Telecom – Bharti Airtel; IT – Birlasoft.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Vivek Shah  |60 Answers  |Ask -

Financial Planner - Answered on Feb 13, 2023

Sir, i am an investor of about 10 year horizon. Which stocks can i invest.
Ans: First of all as an investor and also managing your family finances, you need to answer following questions before deciding on which instrument you want to invest

1) Goal or financial goal or purpose of doing investment.
This will matter a lot as a goal of child education and retirement needs to see with different perspective and also should have asset allocation and market cap exposure accordingly.

2) Time Horizon of your goals- this is very important as it will help you to select the asset class and it's allocation based on your time period of financial goals. This is where investor makes biggest mistake of misalignment of asset time cycle and goals time period. If you allign this properly, your journey will be quite smooth.

3) Optimum Return expectations on your capital invested-
If you are saving and investing for some better future to fulfill your goals offcourse you will ask something in return which should be respectable higher returns than inflation for long term period( more than 7 years). If you are investing in India than equity return assumptions and calculations should be based on 12% return expectations and debt it should be 6.5%. Remember that you should assume practical return assumptions ( not the highest or what your friend says) as you can put any number in the excel sheet for your mental satisfaction😃

4) Risk taken on your capital-
Risk is a very negative word being taken in india but actually it's the risk appetite and risk acceptance of an investor which makes his outcome/ returns favourable. Understand one thing that if you want high returns you have to assume high risk and there is no option for it or an investor has to be happy with sub optimal returns if he is not ready to take risk.

Risk according to me is the capacity of a person until where and when he will not have any palpation in his stomach and he can absorb the downside easily( both realised and majority of time unrealised).

After looking at all these parameters you can think of taking allocations to stocks or equity mutual funds and decide how much allocation to stocks or mutual funds is comfortable to you. If you dont have any prior expertise in investing in stocks, its better to hire an advisor to help you do that or start with allocation in Equity Diversified mutual funds which will help you to take exposure in stocks.

And after all that, i would say it's your behaviour and emotions management which will help you create wealth in the equity market.

I hope this helps. Happy investing

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Ramalingam Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 04, 2024

I have 20 lakh Rs. to invest only in Equity for 10 Years. Kindly suggest the sectors which could see significant growth in next 10-12Y..If possible kindly suggest some stock from these sectors. I already have SIP of 60K per month diversified in large Mid and small cap.
Ans: Considering your long-term investment horizon of 10 years and the desire for substantial growth, I would recommend focusing on diversified equity funds rather than investing directly in sectoral stocks. Diversified equity funds offer exposure to a wide range of sectors and companies, helping to spread risk and maximize long-term returns.

Instead of trying to predict which specific sectors will outperform over the next decade, diversified equity funds provide a balanced approach by investing in a diversified portfolio of stocks across various sectors. These funds are managed by experienced fund managers who carefully select and rebalance the portfolio to capture opportunities while mitigating risks.

By investing in diversified equity funds, you can benefit from the growth potential of multiple sectors without the need to pick individual stocks. Additionally, these funds offer convenience, liquidity, and professional management, making them suitable for long-term investors seeking capital appreciation.

I would suggest considering reputable diversified equity funds with a track record of consistent performance and aligned with your risk tolerance and investment goals. It's essential to conduct thorough research or seek advice from a financial advisor to select funds that suit your requirements and align with your overall investment strategy.

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Samraat Jadhav  |1874 Answers  |Ask -

Stock Market Expert - Answered on Jul 22, 2024

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.


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