Want to invest in SIPs? From ICICI Bank to BPCL - These 21 stocks are multibaggers
One can invest a certain amount in SIP at regular intervals namely weekly, monthly or quarterly.
The Systematic Investment Plans (SIP) have become among popular investors. Latest data reveals that SIPs have garnered inflows of Rs 82.4 billion in April 2019, rising by a massive 23.1% on yearly basis. As per Motilal, SIP contribution have jumped by 23% in last one year and 1.9 times in past two years. Now that the NDA government has come into power experts believe stock SIP investment can hedge good returns in kitty. One can invest a certain amount in SIP at regular intervals namely weekly, monthly or quarterly. According to IDBI Capital, here's a list of 21 stocks which are good and can be considered as stock SIPs.
This is what IDBI Capital says:
Expect Oil Marketing Companies (OMCs) to see dual benefits. 1) INR appreciation, we see a high probability, will benefit OMCs as for every Re 1 appreciation, under recoveries of the OMCs will decrease by ~Rs50 bn p.a.; 2) Correction on crude prices also augers well for profitability of OMCs. These factors are positive for HPCL, BPCL and IOCL.
Positive on BFSI sector especially banks. We prefer PSU banks like SBI over private banks. Within private banks we like ICICI Bank, HDFC Bank, Axis Bank and Federal Bank. We would avoid NBFCs as the liquidity and NPA crisis is still not over. We will have to monitor as to how the government will handle the credit crisis. However, we are positive on select high quality companies like Cholamandalam Financial Holdings and Sundaram Finance.
During the 3 terms of NDA government we have seen that the government focus is towards Infrastructure development hich will benefit companies like Dilip Buildcon, KNR Construction, PNC Infrastructure, Ashokha Buildcon and NBCC. NDA government would maintain continuation of favorable policies towards roads sector. This will ensure implementation of the ambitious Bharatmala programme.
Since 2014, Government has been also focusing on “Make in India” especially in the defense sector. We believe that the government will continue to focus on indigenization of the manufacturing in the sector. This will benefit companies like Larsen & Toubro, Bharat Electronics, Bharat Dynamics, Mishra Dhatu Nigam, Cochin Shipyard, Bharat Forge.
Along with the stable government it is expected that monsoon would be good in this year which will benefit Fertilizer, agro and agro chemical companies like Coromandel International, Gujarat State Fertilizer Corporation, PI Industries and Chambal Fertilizers.
Hence, if you are planning to invest in SIP-related equities, you might want to have a look at the above mentioned stocks!
What is an SIP?
SIP is an easy step and also ensures discipline in your savings. All you have to do is open an SIP account with a financial institution, and link it with your bank account. Depending upon your investment strategy, money will automatically get deducted from your bank account on weekly, monthly or quarterly basis.
Investment amount in SIP starts to as low as Rs 500 per month, which eliminates the burden of managing your overall expenses on monthly basis, as very little is deducted.
There are two methods which greatly help investors earn big through SIPs.
Firstly is rupee-cost averaging. As we are aware that market is sentiment driven and unpredictable, this creates an issue on when is the best time for investment. With rupee-cost averaging, an investor with its invested SIP amount earns more units when the price is low and earns less units when the price is high.
Second would be power of compounding. Every amount you invest, you earn interest on it. This interests get compounded and accumulated over a period of time. The higher the SIP tenure the higher would be your return.
SIP can turn your little investment into mammoth gains too. Anything can happen when it comes to market. Although being very volatile, markets are still better placed when it comes to make heavy money. It has always shown a growth every five years and touched new levels.