The stock market is a great place for investors to build wealth. However, it can be hard for the average investor to pick winning stocks. There are a lot of different factors that go into determining if a stock will be a good investment or not. The fact that there are so many factors can make it difficult for investors to find stocks with the best chance at being successful.
When you own a stock, you share in a company’s profits and losses. Generally, if a company does well, the stock does well. The common ways through which equity gives returns in the long term include dividend and capital appreciation.
However, to make investing more fruitful, investors look at stocks that give the biggest bang for their buck and, when the market turns south, allow more room for error. These stocks are called the best stocks. To select the best stocks for investment here we have mentioned a simple method which we call as Alternative Investment Approach.
Alternative Investment Approach
Meaning
One of the easiest ways to find the best stocks for your long term investment portfolio is through an Alternative Investment Approach which says “Invest in stocks of the companies, companies that you trust for your financial investments like Gold, Fix Deposits, etc”.
Depending on the circumstances, if you are searching for good stocks for investment, you can always consider buying shares of a company in which you invest in other financial products i.e. invest in stocks of the companies that you trust for your financial investments.
Alternative Investment Approach Funda doesn’t claim to give you stocks that cannot go wrong, even the most investing-savvy individuals cannot predict with absolute certainty whether a stock will do well after buying it.
Few Examples
If you want to put your money in HDFC bank for fixed deposits then along with Fixed Deposits also consider buying the stocks of HDFC bank instead of just giving their money for small returns.
If you are thinking of buying gold then also consider buying shares of Gold Companies like Titan (Tanishq).
Likewise, If you are thinking of house or real estate then also consider buying shares of Infrastructure Companies like ACC, Grasim, etc.
If you are looking for other methods for selecting stocks for investment basis then we have explained beautiful, reliable and easy method i.e. Consumption Approach: Easy method for stock selection based on Consumption.
Role of Stock Advisor
The basic goal of an Alternative Investment Approach funda is to select the best stocks but if you are also looking for the right price to enter to get an attractive risk-adjusted return as well as reduce portfolio volatility, and increase exposure to certain sectors that may otherwise be lacking. For that you can consult your stock market advisor.
Here at multibaggers.co.in we provide long term stocks of two types: growth stocks and value stocks. We encourage investors to own both kinds of stocks because they bring in different types of returns depending on the developments at the company.
There are many such great stocks selection methods in the market that you can find out and make good investments or take stock market advisory services without going into the pain of analysis. You can invest in small amounts with proper diversification slowly. It has better chances of giving you decent returns. Multibaggers.co.in is a leading Shares and Stock Market Advisory in India. We recommend our clients the right stock as per their risk-return parameters.
We work one-on-one to educate our clients about the best way to invest their money, track their progress, and review it when they wish. Stock trading is an intimidating task. One of the most overwhelming aspects is information overload. There is a lot of information out there, and not all of it is even accurate.