Investors should invest in strong “forever stocks” which will deliver high returns over the long term. Investors should also select an important set of guidelines in carrying out a successful investment programme as these rules form the foundation of growth stocks. But where can investors find the best growth stocks? One way for investors is to invest in Growth scheme category of Mutual Funds. In case of individual personal selection of stocks, usually they are found in today’s fast growing industries where revolutionary new technologies and services are being created. Investors should buy stocks that are consistently outperforming the markets and are being accumulated month after month by funds and intelligent investors alike. Some advisors point out that Relative Performance (RE) studies is an excellent way to identify successful companies. Investors can also use the market timing to buy their favourite stocks as they should not underestimate the power of the market. Once the investment has been made, then be patient and recognise that time is your friend. Some wealth advisors call it the staying power. Let your profits run over long term as the power of compound growth can increase your return on investment grow substantially—if you are patient. Add modest quantity of winner shares from time to time in a staggered manner. What we call an averaging purchase cost option currently very popular as Systematic Investment Plans of Mutual Funds in the country. Plus, stay optimistic as India and the stock market will give fantastic investment opportunities in the next decade and tremendous profits can be made by a patient investor. Companies with tremendous moats, pedigree, superlative performance over the last two decades, fantastic franchise are bound to do very well. Tata group company TITAN Industries fits the bill and hence investors can accumulate the TITAN stock and reap rich rewards over time.
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.