Welcome to our new blog. In this blog, we will discuss how to invest 50000 rupees in the stock market. What to do with 50k? So let’s start.
You can invest 50,000 in three ways, where you can get good returns. Like you can start investing directly in a stock market or investing in a stock market through mutual funds.
How to invest 50,000 Rupees in the stock market?
If you have Rs 50000 and want good returns, then you can invest in the stock market. If you have less than 50000 or more funds, you can still invest in the stock market.
There are a few things to keep in mind before investing in the stock market:
- You can’t get fixed returns from the stock market
- Many times you will get fewer returns than expected and a few times more returns than expected.
- You will get good returns in long-term stocks
What to do with 50k?
Invest In Stock Market:
To invest in the stocks, it is necessary to have a Demat account, and you can open the account by clicking on the link.
Whatever fund you have, you can invest the fund by dividing it into some percentage. Investing by dividing the funds will not damage your portfolio much if the market falls.
You can divide your fund up to 7 or 10 percent, and you can invest in 7 to 10 stocks. If you have less than 50000, you can invest in 5-8 best stocks.
If you were having a fund of more than 50k so, you could invest 10-12 percent as per your portfolio size.
Best Stock to buy in 50000:
I am mentoring some stocks, out of which I have invested in some stocks.I chose these stocks because I like these stock’s fundamentals and the company’s model. You can also invest in these companies, but before investing, take advice from your financial advisor once.
|No||Company Name||Stock Price||Stock P/E||Market Cap|
|1||Asian Paints Ltd||₹ 2,552||89||₹ 244,763 Cr.|
|2||Berger Paints India Ltd||₹ 764||121||₹ 74,241 Cr.|
|3||Bata India Ltd||₹ 1,425||–||₹ 18,316 Cr.|
|4||Marico Ltd||₹ 407||46.6||₹ 52,590 Cr.|
|5||Central Depository Services (India) Ltd||₹ 656||38.7||₹ 6,852 Cr.|
|6||Godrej Industries Ltd||₹ 540||48.1||₹ 18,156 Cr.|
|7||Reliance Industries Ltd||₹ 2,022||32.7||₹ 1,328,134 Cr.|
|8||Larsen & Toubro Ltd||₹ 1,445||14.3||₹ 202,902 Cr.|
|9||Pidilite Industries Ltd||₹ 1,823||92.3||₹ 92,644 Cr.|
|10||HDFC Life Insurance Company Ltd||₹ 691||103||₹ 139,647 Cr.|
If you want to invest in more good stocks, you can choose among the stocks of NIFTY50.
Many people like to invest in funds, and many people feel a bit secure. So you can start invest in the Index Funds.
New many people keep in mind that how to invest 50000 in the best companies of the country. So they can invest through Index Funds. In the long run Index Funds Can gives you the best returns.
There are two types of funds, active funds, and Passive funds. The fund manager in active funds actively analyzes several companies listed in the stock market and invests in companies. Hence its expense ratio is slightly higher and charges 2 percent on your funds of the year.
Passive funds are not managed actively. The index fund is a good example of a passive fund. These funds are invested only in indexes. Indexes like NIFTY50, SENSEX, etc.
The Nifty 50 is a total of 50 companies. And the weightage of all companies is different. So, according to weightage, the fund manager invests in the companies. so their expense ratio is 0 .10 percent.
Index funds track the index. Index funds returns are equals to as per the index returns.
You can see in the video below what Warren Buffet says about index funds in a CNBC interview.
Two types of index funds are ETF and Normal.
- HDFC Sensex ETF
- SBI – ETF Sensex
- Reliance Sensex ETF
- HDFC NIFTY 50 ETF
Normal Index Fund are,
To invest in ETF funds, it is necessary to have a demat account, and later you can invest in these funds. You can buy funds from AMC’s direct website or the from the application.
You may be thinking about how to invest 50000 in Real Estate. Yes, you can also invest in the Real Estate with fewer funds. You can invest in real estate through REIT. REIT starts at 50,000. One unit of REIT starts from 50k to 55k.
In India, there are few REITs available. It Recently started a few years ago. In India, not many REITs are available; therefore, we don’t have many options to select the best REIT at the best valuation.
But you can Invest in the REIT whenever unit prices down or at best valuation. Like in the Lockdown, many REIT unit prices were down, so that was a nice opportunity. Don’t worry; you will best REIT at a good valuation in the coming time.
You also can invest in Mutual Funds, Bonds, Sovereign Gold Bond where you can get the best returns.
Before investing Take a advise by your financial Advisor.
Thank you for reading my blog, I really appreciate your time!!!