Large Cap Stocks for Long Term 2024 –  Investing is essential thing but all those who are busy in their profession or doing their job do not get time to manage their savings and keep their savings in long term assets like fixed deposits and mutual funds. Some of them do invest in stock market but due to high risk and lack of knowledge in choosing the right type of shares or stocks to invest loose their capital .

For all those who find it difficult in choosing what type of stock to invest whether long term Large cap stocks or Mid cap stocks , then in this article we shall be teaching you more about more about this . Also , you will be able to know what should be the ideal waiting period for receiving returns and what are the achievable returns which can be achieved in stock market for about 50% returns or 22% returns within a year.

Large Cap Stocks Vs Mid Cap Stocks

Large Cap Stocks can be said as shares which are priced above Rs 1000 and Mid cap stocks which are above Rs 100 but below Rs 1000 . Investing in large cap stocks could be risky and hold high momentum where profits can be booked quickly or it can be risky where the capital can also be loosed.

Mid cap stocks are less risky or generally hold the opportunity to become large cap in few years or 2 or more years. It is ideal said , investing in large cap certainly helps you raising profits on your investments easily and you get easy profits in such stocks.

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Risk in Investing Large Cap Stocks

There is also risk in investing in large cap stocks. For instant , in December 2023 the price of Tata Technologies is 1200 and if you invest for 100 shares in the market for Tata technologies in December then on appreciation of 1% you will be able to receive a return of 12*100 = 1200 in single day .

While if you loose 1%, then you shall be loosing 1200 from your capital in a single day . So, investing in large stock could be risky if you are not monitoring or not working with a definite stop loss because market can crash any time.

Risk and Returns in Investing Mid Cap Stocks

MidCap stocks are generally considered as less risky stocks , because investing in mid cap stocks involves less price movement which is less risky . For instance , in investing a stock for a price of 200 , a loss of 1% can be Rs 2 and for 100 shares you might loose only Rs 200 and you can stop loosing your entire capital or big portion of the capital.

Considering returns in mid cap stocks entirely depends on the type of stocks and movement of stocks.

Holding of Large Cap Stocks for Long Term

For a minimum of 10% or 15% return in share market , it is necessary to keep your amount invested in long term like for a period of minimum 2 months and for a maximum of 1 year period with expecting an upward movement of  4% on day basis on stock or a 4% maximum downside for minimising risk.

It is essential to keep the minimum stop loss at 6% downside and profit booking at maximum 10% on any stock .

Achievable returns of 50% in Large Cap or Mid Cap Stocks

In stock market , a return of 50% is only achievable in large cap stock investing because large cap stocks are capable of giving fair return to its investors which are more than 1000 where a 1% return would be about 10rs which is good for growing the capital at a greater rate.

How much time to invest to redeem about 15% returns in Large Cap Stocks ?

By investing in large , one of the best way is to complete 5 profitable trading or investing sessions in different large cap stocks to earn atleast 15% returns from Large cap stocks. If you loose 10% on one stock , then it is better to exit such stock and not to wait much because it can further crash your capital .

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Conclusion

So , for all those who are beginners and want decent return on their investment it is advisable to go for long term investing and large cap stocks.

If you have any queries related any stock and about investing in large cap stocks , then you can contact us down in the comment section below.