Investing Wisely: Best Stocks Under Rs. 20 in July 2022
As an investor or trader, especially if you're new to the market, it's crucial to approach penny stock investing with caution. While the allure of potentially big gains can be tempting, a vast majority of penny stocks are heavily manipulated and rarely turn out to be 'multi-baggers.' Instead of focusing on these volatile investments, consider diversifying your portfolio with blue chip stocks, which are more stable and less risky.
Why Opt for Blue Chip Stocks?
Blue chip stocks, also known as blue chips, are large and established companies that have a proven track record of financial stability and consistent earnings. Investing in blue chips offers several advantages:
Reliability: These companies are less prone to sudden and drastic drops in value. Dividends: Many blue chips provide steady dividend payments to shareholders. Long-term growth: Over time, these companies tend to offer more consistent growth. Diversification: Investing in stocks across various sectors can help reduce risk and improve overall portfolio performance. Stability: Blue chip companies often have a diversified customer base and multiple revenue streams, providing more stability.Suggestions for a Balanced Portfolio
To create a balanced and diversified portfolio, consider the following sectors:
Banking Sector
Banking: ICICI Bank
NBFC and Financial Services
NBFC: Bajaj Finance/Bajaj FinServ
Telecommunications
Telecom: Bharti Airtel
Information Technology
IT: Wipro/TCS/Infosys (Infy)
Pharmaceuticals
Pharma: Sun Pharmaceutical
Automobiles
Auto: TVS Motors/Bajaj Auto
Fast Moving Consumer Goods (FMCG)
FMCG: Hindustan Unilever Limited (HUL), D-Mart
Metals
Metals: Tata Steel
Lesson from Experience: Shyamcent
It's not uncommon for investors to have success stories with penny stocks, but such cases are rare. One such example is Shyamcent, a stock that was trading at Rs. 3/- and later increased to Rs. 200/-, providing a significant return on investment. However, investors should be cautious when investing in stocks with no solid fundamentals or background. It's important to conduct thorough research and consider the company's financial health and market position before making any investment decisions.
Current Opportunities Under Rs. 20
As of July 2022, several stocks under Rs. 20 have shown potential. Here are a few examples:
Banking Sector
Yes Bank Ltd: Current Market Price (CMP) - Rs. 12.40
Telecom Sector
Vodafone Idea Ltd: Current Market Price (CMP) - Rs. 7.95
Banking Sector
UCO Bank: Current Market Price (CMP) - Rs. 10.60
Regional Banks
Bank of Maharashtra: Current Market Price (CMP) - Rs. 15.20
Income Generating Sectors
Suzlon Energy: Current Market Price (CMP) - Rs. 7.10
Punjab and Sind Bank: Current Market Price (CMP) - Rs. 13.20
Jaiprakash Power and Ventures: Current Market Price (CMP) - Rs. 5.60
Reliance Power Ltd: Current Market Price (CMP) - Rs. 11.10
Important Disclaimer
Please note, before making any investment decisions, it's essential to consult a financial advisor. This group is intended only for educational and learning purposes and does not constitute investment advice. For real-time trading strategies, follow the 'Stock Masters' Telegram channel for intraday and long-term recommendations.
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