Today, we see many people want to increase their passive income, so many options are available for investment. But the stock market is one of the popular options that has the potential to create massive wealth as a passive income. In the Stock Market, Various options are available for investing money, like short-term, long-term investments. As per the historical data, major of people create wealth through investing in best long term stocks
In this blog, we show the power of long-term investing in the stock market and why it should be a key part of your wealth-building journey. Jarvis Invest, a SEBI-registered stock market advisor, helps you create a wealth-building stock portfolio through AI-driven data research. Jarvis Invest is India’s first AI-powered stock advisor. Subscribe to the Jarvis Portfolio service today and start building long-term wealth.
Why invest in long term Stocks?
Investing in long-term stocks provides several benefits to build strong and sustainable wealth:
- Better Returns: Historically, compared to other asset classes, the stock market has generated better long-term returns. Many big investors have created wealth through long-term investing in quality stocks.
- No Tension of Market Volatility: With a long-term perspective, there is no need to continuously buy and sell
- Tax Benefits: A lower tax rate is imposed on long-term investments compared to short-term investments.
- Financial Freedom: Earn a monthly income through dividends from stocks while also growing your wealth as stock prices increase.
- Save Transaction Charges: By investing in long-term stocks, you avoid frequent buying and selling, which helps save on transaction and brokerage charges.
However, these points show why we should invest for the long term, but we also need to follow some principles to build wealth through long-term stocks.
The Core Principles of Long-Term Investing
Successful long-term investment isn’t about only investing in stocks. We need to make a proper strategy and follow discipline for investing
- Patience and a Long-Term Perspective: Avoid panic when the market is going down because wealth is not created in the short term and needs time. For example, during the recent COVID-19 market crash, the market recovered after some time with unbelievable returns.
- Diversified Portfolio: Do not invest all your money in one stock; choose stocks from different sectors. This also helps with risk management. The famous Warren Buffett quote says, “Don’t put all eggs in one basket.”
- Start Early: Start investing at an early age. This benefits you by giving your money more time to grow and allows compounding because the longer you hold stocks, the more it helps multiply your wealth.
- Avoid Emotional Decisions: Do not decide on an emotional basis, such as panic selling during a market crash or buying excessively when the market goes up. Do not react to short-term market noise.
- Review Portfolio: Reviewing your portfolio is important to ensure it stays aligned with your financial goals. Always choose quality best long term stocks through proper research, not just based on news or market hype.
- Set Goals: Define your proper objectives, which help determine when to exit an investment, such as for a retirement plan or buying a house. This helps maintain discipline for long-term wealth creation.
Grow your long-term wealth with Jarvis Invest, India’s first AI-powered share market advisor. We provide a value research portfolio along with rebalancing services to keep your stocks performing at their best.
Best share to buy for the long term in India :
1. Reliance Industries
A conglomerate with a wide portfolio in energy, retailing, and digital services. Reliance also forms part of the Nifty 50 index, and its steady growth and dominance in numerous industries would ensure it remains one of the good long-term executors of generating wealth.
2. Jio Financial Services
A financial technology (fintech) startup with the backing of Reliance that specializes in digital lending, insurance, and financial inclusion. The firm has also partnered with BlackRock to venture into asset management operations. Jio Financial offers good long-term potential due to its robust ecosystem and the potential of runway to grow.
3. KPIT Technologies
One of the world-leading company that specialize in automotive software and mobility solutions. The company is also involved with battery management systems and EV technologies as the whole world has shifted towards electric and autonomous vehicles, and they are set to grow over the long term, making it well-positioned in the venture.
4. Newgen Software
An enterprise software product organization that provides digital change and workflow automation products and AI-based platforms. It is also appealing to long-term investors due to its growing presence in the global market.
5. CDSL (Central Depository Services Limited)
India’s largest securities depository has the advantage of an increasing number of retail participants in stock markets and demat accounts. The monopolistic-like position in the industry CDSL ensures a stable long-run growth.
6. Titan Company
Titan is a division of the Tata Group and a dominant player in the jewellery and watches, and lifestyle products. It also has a good brand value with a stable financial performance that makes it a good long term investment.
7. Larsen & Toubro (L&T)
A leading firm in infrastructure, engineering, and construction. The nature of L&T is that of a diversified group with a strong execution capability, making it a stable entity.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Please consult a SEBI-registered advisor before investing
Snapshot of India’s Best Long Term Stocks :
| Stock | Sector/Focus | Key Strength | Long-Term Growth Driver |
|---|---|---|---|
| Reliance Industries | Energy, Retail, Digital | Diversified conglomerate, main player in Nifty 50 | Expansion across multiple sectors & strong leadership |
| Jio Financial | Fintech, Asset Management | Backed by Reliance, a tie-up with BlackRock | Digital lending, financial inclusion & AMC growth |
| KPIT Technologies | Automotive Software, EV Solutions | Leader in mobility software & battery management | EV, autonomous & battery technology adoption |
| Newgen Software | Enterprise Software, AI & Automation | Strong global digital transformation offerings | Rising demand for AI-driven business solutions |
| CDSL | Financial Infrastructure | Leading securities depository in India | Growing retail participation & demat account growth |
| Titan Company | Jewellery, Lifestyle | Trusted Tata brand, strong retail presence | Rising demand for branded jewellery & lifestyle |
| L&T | Infrastructure, Engineering, Construction | Diversified projects, execution strength | India’s infra push & global project pipeline |
Backed By Data & Historical Performance
- Past Market Returns: The Indian stock market (Nifty 50) has had an average 11-13 % CAGR in the last 20 years, which demonstrates the power of long term investing.
- Wealth Creation through long term stocks: Companies such as Reliance, Titan and L&T have increased the wealth of investors over 10-20 times in the last 20 years.
- Investing in High-Quality Stocks is Simple to Understand: Any ₹1 lakh portfolio on an average growth rate will become ₹10-12 lakhs in 15-20 years.
- Less Risk as Time Passes: Records from the past have demonstrated that the longer an asset is held, the higher the chances of not realizing a negative outcome. As an example, it can be shown that the Nifty 50 has returned negative returns hardly ever over 10-year rolling periods.
Legendary Investors Who Proved the Power of Long-Term Stocks :
1. Rakesh Jhunjhunwala
Rakesh Jhunjhunwala was a great Indian investor who achieved enormous wealth by investing in the stock markets over long periods. His most notable bet was at Titan Company, where he started acquiring shares in the early 2000s when the share had a price range of ₹30- 32. In the following 20 years, Titan provided exceptional returns, increasing by more than 8000 percent and helping Jhunjhunwala gain a lot of wealth.
2. Vijay Kedia
Vijay Kedia, yet another renowned Indian investor, made an investing name because of his investment in Cera Sanitaryware, which was not a very popular stock in the second tier, way back in the early 2000s. He even kept on buying slowly as it fell by nearly 50 per cent. Long term, Cera has turned into a multibagger and Cera has given Kedia returns above 100 bangles.
These are real life stories that demonstrate the strength of long term investment, yet they also demonstrate why discipline and selection of quality stock is crucial.
Time To Summarize: –
The power of long-term investing in stocks has been proven by historical data and real investor success stories. But remember, you need proper research to choose quality best long term stocks for long-term investment by analyzing company fundamentals, stock price trends, and regularly rebalancing your portfolio to grow your wealth. Stop worrying about what stocks to buy or when to rebalance. With Jarvis Portfolio, India’s first AI-powered share market advisor, you get value research, expert-selected stocks, and ongoing rebalancing all in one service. Invest with Jarvis Invest and start building your wealth today.
Frequently Asked Questions
Q: Is there a risk of losses in long-term stock investing?
Ans. Yes, markets carry risk. But with quality stocks, diversification, and patience, long-term investing usually reduces losses. However, history shows that holding fundamentally strong stocks for the long term generally reduces the impact of short-term fluctuations and increases the chances of wealth creation.
Q: How to pick long term stocks?
Ans. Pick companies with strong fundamentals, consistent earnings, low debt, and growth potential. Focus on sectors with future demand, diversify across industries, and stay invested with patience. Jarvis Invest, a SEBI-registered advisory, helps recommend the best stocks for building a strong long-term portfolio.
Q: What is a growth stock?
Ans. A growth stock is a company expected to grow faster than the overall market, often reinvesting earnings to expand its business. These stocks may have higher volatility, but offer strong long-term wealth creation