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Anil Poonia

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There’s a high possibility that you came across this page while searching for the best long term investment stocks. Well, congratulations, you have come to the right place. 

In about another 100 words, we will reveal the list of the best long term stocks to buy in India. 

But only discovering the names of the best long term stocks will do you no good if you do not know the secret of creating wealth through these stocks. 

Yes. Contrary to millions of ‘getting-you-rich’ books, market experts and finance gurus, there are only two secrets to infinite wealth creation. 

These secrets are followed by some of the greatest investors of our times. From Warren Buffett, Benjamin Graham, Peter Lynch to our very own Rakesh Jhunjhunwala and Raamdeo Agrawal. 

These two secrets revolve around the 3 most powerful words in the stock market – Long Term Investing

But before we reveal anything further, as promised, for the busy readers getting late for office and okay not knowing the greatest investment secrets, here’s the list of the 10 best long term investment stocks to buy in India. Enjoy! 

StockReturns* in %Market Capitalisation
(in Cr.)
Bajaj Finance ltd.141.233,01,224
Coforge ltd.93.1817,067
Infosys ltd.89.435,86,204
Jubilant Foodworks ltd.83.8038,620
Tata Consultancy Services ltd.59.321,191,926
HDFC Bank ltd.49.657,99,408
Godrej Consumer Products ltd.44.5978,690
Crisil ltd.34.4914,155
ITC ltd.23.732,49,178
Hindustan Unilever ltd.17.845,70,730

* Returns after our recommendation on 6th May 2020 to 7th Jan 2021

Now for our disciplined readers, the two secrets for infinite wealth creation are: 

  1. Selecting top-quality stocks 
  2. Staying invested for the long term. 

Aren’t these secrets quite obvious? Shouldn’t all investors inherently follow them? Unfortunately, while obvious, 99% of investors fail to follow these basic long term investing principles. These ‘investors’ then wonder why they did not create infinite wealth! 

But we empathise with you. While common sense, discovering the best long term investment stocks is no easy task. It takes years of hard work, perseverance and a keen eye to discover the best long term stocks amidst the 4,500+ stocks in the market. 

StockBasket, India’s first long term buy and hold investment platform, runs more than 2 crore data points every day to discover the best long term stocks. 

We have already revealed the 10 best long term investment stocks to buy in India. So, you’ve already won half the battle. 

To win the other half, you need to commit to long term investing. But before making a long term commitment, you first need to understand the Power of Compounding.

Power of compounding is the single reason why an ordinary boy from Omaha is amongst the richest men on the planet! 

Did you know that Warren Buffett’s annual portfolio return is only 22%? On the contrary, Jim Simons has generated an annual return of 66%! 

But then why is Warren Buffett known as the greatest investor of all times while Jim Simons remains unknown? 

If returns are the only thing that matters, then why is Jim Simons not the richest man on the planet having beaten Warren Buffett’s portfolio returns by a whopping 44%! 

You’d be surprised to know that returns are not the most crucial component of long term wealth creation. 

The secret of long term wealth creation is the power of compounding. Warren Buffett selects great quality fundamentally strong stocks. No arguments here. But that is not the sole reason for his abundant wealth. 

Warren Buffett’s strength lies in stock selection but his secret is the time

Warren Buffett started investing when he was 9 years old. He is 90 years old now. His investments have been compounding for almost a quarter of a century. On the other hand, Jim Simons started investing in good quality stocks in his late 50s. 

Simply put, even a 44% higher return couldn’t cover up the gains accumulated due to the Power of Compounding. 

So, there you go. Select fundamentally strong stocks and stay invested for the long term and you too shall create infinite wealth. 

But the next logical question is, ‘Which among these best long term stocks should you buy first? It might be possible that you do not have the funds to buy all 10 long term investment stocks at one go. 

So. how should you go about investing in these best long term stocks? 

There are two ways to invest in our shortlisted long term investment stocks. Either you invest on your own or through StockBasket. 

When you invest on your own, you might buy some stocks and miss out on others. But when you invest through StockBasket, you get to invest in all these stocks proportionally. So, you never miss the wealth-creating potential of any of these stocks. 

You might think, ‘What is StockBasket?’. 

StockBasket is the smartest way of investing in the stock market. StockBasket is India’s first long term investing platform

When you invest on your own, you might not have the time or resources to constantly track all individual stocks. StockBasket, courtesy of its 60+ intelligent parameters monitors the quality of stocks and only includes the best stocks in each basket.

Who Should Invest in StockBasket? 

StockBasket is created with the principle that every investor whether big or small, should have access to wealth creation via the stock market. 

You should invest in StockBasket if you are: 

  • A long-term investor, who knows wealth can only be created by staying invested in quality stocks for a long period.
  • A student, who wants to make the ‘perfect’ start to stock market investing. 
  • A salaried professional wanting to achieve your financial goals. 
  • A seasoned investor, who has created some wealth in equity markets and understands the nitty-gritty of the stock market.
  • A senior management professional, who does not have the time to track markets but wants to create wealth in the stock market.

Why should you invest through StockBasket? 

You should invest in StockBasket as it follows the two most important fundamentals of long term wealth creation – Superior stock selection & investing in them for the long term. 

StockBasket has SEBI registered expert-curated ready-made baskets of stocks, suited to each and every financial goal. Each basket contains the absolute best long term stocks to buy in India. 

Our confidence in our research is so strong that we offer a unique ‘5-year fee refund guarantee‘. So, if you don’t make money in any of our recommended baskets in 5 years, then the entire subscription fees collected from you over these five years, will be refunded.   

StockBasket investments start from as low as Rs 3,500 to Rs. 15,00,000, and it takes only 5 minutes to open a StockBasket account.

One of my favourite quotes is, “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”

As you watch the paint dry or grass grow, these articles will make up for an excellent company! 

I’ll be back with many more such ‘interesting’ articles. For now, Ciao! 

“Ninety-nine percent of the failures come from people who have the habit of making excuses.”                    

                                                                          -George Washington Carver

When it comes to investing people always find an excuse to avoid it, some common excuses that they say are lack of money, lack of knowledge, too risky, it’s too early to start or it is very costly to afford portfolio management services. 

Today we will try to discuss the reasons or excuses that are keeping you from investing in the stock market and how we can overcome them:

  1. It’s too early to invest: You may feel that you are too young to invest because you have just graduated or started your new job but are you aware of the fact that Mr Warren Buffett bought his first stock when he was just 11 years old. This may look astonishing to you but as the famous saying goes “The best time to plant a tree was 20 years ago. The second best time is now” so don’t hold it, start your investments as early as possible. Also early investing will help you to invest less in the long term. To know more on early investing read our article on Early investing.
  2. Don’t have money to invest: This is one of the most common reasons to avoid investing, people do not plan their budgets and end up with no money at the end of the month. To avoid this should one should plan his monthly expenses, we can use the 50/20/30 budget rule which says that we should spend 50% of our income on your daily needs and obligation, and you should split the other 50%, in 20% and 30%, you should save/invest the 20% and use the 30% for everything else that you want. Also, you can start with small amounts and then increase it gradually.
  3. Equity investments are too risky: Well, yes, there is a certain amount of risk involved in equity investments but in general, they are the best investment instrument that has the potential to beat the inflation rate and give your superior returns, unlike your savings account.
  4. Too old to start now: Many of us because of their debt burden or some other responsibilities did not that the time to plan their investment, for them its never too late to start investing and starting their wealth creation journey.
  5. Have no knowledge about investing:  Many of us feel that investing is just the gameplay of seasoned investors or we need to know the market in and out to start our investing journey, this is not true, for investing you just need to have a fair idea about the framework, start with small investments and take help from experts, one can also learn the basics from online videos.

Summary 

However, in the end, can say that out of all these excuses none should hold you back from investing your hard-earned money in the stock market and starting your wealth creation journey.

For beginners who don’t have the time and expertise to identify the right stocks can start with StockBasket – a long term buy and hold investment, it has expert-curated mini portfolios or basket of stocks. One can invest in these baskets of stocks as they are less volatile, great quality and their initial investment start from Rs. 3,500.

So stop making excuses and start your investment journey today!

Every retail investor has this one question in his mind that which stocks would give him good returns and help him grow his money with a greater pace than the other asset classes. So, in this case, what should a retail investor do? Is there anyone whom he can approach for the right advice, the answer to all these questions is an Investment Advisor

So who is an Investment Advisor?

An investment advisor (also known as a stockbroker) is any person or group that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of clients assets or by way of written publications

As per the new rules of SEBI, only a SEBI registered adviser can give you investment advice. 

The investment advisers can be of two types:

  1. Advisor 
  2. Advisor + Distributor

Beyond this, anyone who gives the investment advice is doing it illegally as per the SEBI regulations.

Now let us discuss some qualities of a bad or fake investment advisor:

  • Advisor without SEBI registration: Investors should avoid those advisors who are not registered under SEBI as they do not comply with the best practises of SEBI.
  • Fake advice of Guaranteed returns: Investors should understand the fact that No one can guarantee returns from the stock market, so you need to avoid advisors that assure you guaranteed returns or you can earn some X amount daily
  • The Advisor who have fake testimonials and track records and market themselves under the name of big Investors: Most of the times we fall under the false claims and testimonial of fake advisors, who project themselves as the top advisors or they are the part of the famous investors out there, we should study and so some background check in this case
  • Dedicated fake team to guide you on investment:  It is observed in many cases that the advisory team do not have the right professionals to guide the investor, following this advice can cause some serious losses

These were some of the qualities of a Fake investment advisor now let us discuss some qualities of a genuine investment advisor that all retail investors should look at:

  1. Presence in Market: The overall experience and presence in market signify how capable he must be to run his business. An advisor should have at least 15-20 years of experience so that he has the maturity and experience in tiding over various ups and downs of the market.
  2. Market Reputation: You can visit the website, articles, reviews or social platforms to know about the advisory, you should especially focus on his reputation, market acceptability and brand equity in the investment community.
  3. Research and Findings: You should focus on the transparency of research and how he recommends specific stocks.
  4. Registered Advisor Only: Do check if the advisor is a SEBI registered advisor or not as it is always advisable to trust a SEBI certified advisor only.
  5. Good Average Returns: Look for an advisor who has good returns, no advisor can be perfect but try to see if they have given returns more than the market’s performance. The performance should be more than 5 years at least. 

Normally an investment advisor can charge up to 0.25% to 1% per year of your profit and the minimum asset under management is quite high, common retailers who do not wish to have an investment advisor can go for other alternatives.

One can also invest in expert-curated ready-made baskets of stocks or mini-portfolio of Samco’s StockBasket, these baskets are managed by their research team are rebalanced timely as per the need. Baskets in StockBasket are categorised according to the financial needs of the investors.

You can invest in them by opening a free StockBasket account!

An Investment is an asset acquired with the intent of generating income or appreciation in the future, whereas Speculation is a financial transaction that has a substantial risk of losing all value, but with the expectation of a significant gain. let’s have a look at Investment vs Speculation comparison in detail

Investment is majorly considered as safe bets and has low risk in comparison with Speculation. The potential of losing the whole amount is the best differentiator between these two styles.

Investment vs Speculation: They can be compared on the basis of 4 major criteria’s they are:

  1. Time Horizon
  2. Risk Levels
  3. Decision Criteria
  4. Investors Attitude
  1. Time Horizon: Investment are generally held for a long term this may range from 2-5 years or more than that whereas speculation is held for a very short time span this is basically less than a year.
  2. Risk Levels: The amount of risk is relatively moderate in investment when compared with speculation. Speculation generally involves greater risk than investing like options, futures, financial derivatives and similar financial instruments. Speculators ofter tent to be looking for a larger and quicker payout than long-term investors. Both involve risk but as the things move fast in speculations it is riskier than investing.
  3. Decision Criteria: Investors tend to have a more basic fundamental approach whereas speculators, on the other hand, focus more on trends, market or investors psychology, they usually focus on these factors for a booking a quick profit.
  4. Investors Attitude: Investors mostly have cautious and conservative considering their risk appetite, they know their capability and invest as per the risk that they can absorb, in case of speculator they are more aggressive with a high-risk appetite.

Investment vs Speculation – Final words

These points reflect the attitude of investors and speculators. Investors generally follow a cautious & conservative approach, while the Speculators have an aggressive approach. The end goal of both is to generate superior returns. 

With access to a lot of information, today the complex process of investing has become an easy process, yet the industry services players portray it as a complex process enough to turn over control of your money to an “expert”.

Today a common retail investor has so much access to the data, advanced tools and platforms that he can manage his portfolio effortlessly without spending a single penny on the costly expert’s fee.

By following the below strategies one can manage his own investment portfolio:

  1. Investment Strategy: Before planning your investment you should understand the business of the company this can be either starting to understand the sector and then the company or vice versa, understanding the economy and the sector first and then the company is called Top down approach, and understanding the company first and then the sector and the economy is called a Bottom Up Approach, you can also refer our article on Portfolio Approach v/s Stock Specific Approach to know more. 
  • The Margin of safety: The best approach to build your portfolio s to avoid risk and the best way to avoid risk is following the Margin of Safety. So what is a margin of safety? The margin of safety can be defined as the principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. This technique helps us to reduce the risk and give us an opportunity to buy quality businesses at a lower price in comparison to its intrinsic value.
  • Invest in Businesses that you Understand: Never ever invest in a business that your friend assumes might go up or following that one good news, don’t invest in a business unless you understand the economics of the industry and can forecast it for at least a  span of 5 years.

2. Risk Appetite: Stock Markets are subjected to risks and one needs to accept this fact and move ahead, you need to figure out your risk appetite on the basis your financial capacity, an investor with a good sum of money can take more risk than an investor who has less money to invest.

3. Diversification: You must have heard about the famous idiom “Don’t put all your eggs in one basket”, the keyword here is to diversify your investment, if you put all your money in just one stock, there are chances that you become super rich or you can lose all your money, there is too much risk involved in investing your money in just one stock, so to avoid this one should balance their investment and invest in multiple good quality stocks.

4. Rebalance: Rebalancing can be said as the process of realigning the weightings of your portfolio, the central idea here is to buy and sell the stocks on the basis of their performance, It is always recommended to rebalance your portfolio once in a year, but you need to constantly monitor your portfolio and rebalance timely.

Summary 

 Today’s investors can easily manage their portfolio, provided they pick great quality stocks. The key to creating wealth is to start early, invest in quality stocks and stay invested in them for the long term, with the magic of compounding coming in to play. This was my take on how to manage your own investment portfolio. Please comment your reviews on it.

You must have heard about many referral programs like you refer to one of you dear ones and you get some Rs. X in your wallet, but have you ever heard about something that will incentivise you when your dear ones start their wealth creation journey with us, let’s us first what exactly is StockBasket and how its referral program work.

What is StockBasket?

StockBasket as the name simply suggests, is a carefully expert-curated ready-made basket of stocks in which you can invest just with one click. 

StockBasket has been designed keeping in mind of retail investors like you. It is built based on these following 4 variables in mind. 

  1. Financial goals
  2. Long-term theme
  3. Risk appetite
  4. Time horizon

You can watch this video to know more about StocksBasket, click here to watch now!

Let us now understand How the Referral Program works:

The main reason behind this referral program is to empower you to share your wealth creation secret with your dear ones, the program is also a win-win situation for you and your dear ones.

Benefits of the Referral Program

  1. Instant benefit of 20 free trades for you and your dear ones.
  2. 10% lifetime brokerage commission for you.
  3. One year free Demat account and first-month Brokerage Cashback for your dear ones.
  4. StockBasket’s Digital India Basket gave a whopping return of 57.26%, make sure your dear ones invest in StockBaskets and enjoy the superior returns.
  5. Last but not the least, you get Rs. 1,000 cash for every referred customer buying baskets worth Rs. 1,00,000 within 12 months of account opening.

How to refer your friends and family?

Generate your personal referral link & share it on any of the social media platforms from Samco Star.

OR

Share your friends’ details in the referral form on Samco Star & we will send them invites on their mail IDs.

Isn’t that easy!

We would love it if you could spread the word and help your friends and family to start their wealth creation journey with the Better Investment “StockBasket

FAQ’s

1. How does the Referral Program work?

Once your referrals open a Samco account, you get a 10% brokerage commission for life, and 20 free trades from each referral (once they start trading). Additionally, earn Rs. 1,000 cash incentive once your referrals purchase StockBasket(s) worth Rs. 1,00,000 within 1 year of account opening.

2. What is your earning potential in the Referral Program?

Once you refer clients to Samco, you shall receive 10% of their brokerage contribution for life. Example: If their brokerage contribution amounts to Rs. 10,000 in a month, you shall receive a sharing of Rs. 1,000.

Moreover, if your referrals purchase 1 StockBasket or several StockBaskets amounting to Rs. 1,00,000 in value, you are entitled to another Rs. 1,000 in cash incentive per referral account. So, if 10 referrals purchase the same, you can earn Rs. 10,000 in cash.

3. When will the referral incentives be processed?

The payout of the Rs. 1,000 cash incentive per referral on StockBasket purchases worth 1lakh will be processed once the requisite conditions are met. And the 10% lifetime brokerage commission on every successful referral, will be processed by the 15th of every month.

4. Are your past referred customers* still eligible for the Rs.1,000 cash incentive of StockBasket?

Yes. The past referred customers* are eligible for the Rs. 1,000 cash incentive per referral account posts their purchases of StockBasket(s) worth Rs. 1,00,000 by 14th Dec 2021 (*Past referred customers are those customers who were referred before 15th Dec 2020).

Clients referred after 15th Dec 2020, are eligible for the Rs. 1,000 cash incentive per referral on StockBasket(s) purchases worth Rs. 1,00,000 within a period of 1 year from account opening.

There are many ways to find a stock’s value but today we discuss the 4 best financial ratios that can be used to find the best-estimated value of a stock. These 4 financial ratios are:

  1. Price to Book Ratio (P/B)
  2. Price-to-Earnings (P/E) ratio
  3. Price-to-Earnings growth (PEG) ratio
  4. Dividend Yield

1. Price to Book Ratio: P/B ratio compares a company’s Market Capitalisation or Market Value to its book value. Now you must be wondering, we know Market Capitalisation or Market value but what is Book Value? So it’s basically the total assets that a company have, you can consider it as:

Book Value = Total Assets – Total Liabilities 

This can always be found on the company’s balance sheets. In simple terms, you can say that if a company sells/liquidates all its assets and pays off all its debt, the value remaining would be the company’s value. Taking an example the book value of a steel company would be its Machinery, its equipment, its land, buildings that can be sold, this also includes stock holdings and bonds that the company possesses. Industrial companies tend to have a book value more on their physical assets. For FInance firms, this can fluctuate as per stocks.

What can be called a better P/B? Any value under 1.0 is considered a good P/B value, this indicates a potentially undervalued stock. However, most of the value investors consider stocks with a P/B value under 3.0.

2. Price-to-Earnings (P/E) ratio: P/E is the ratio of a company’s share price to the company’s earnings per share. This is said to be one of the most important ratios and shall be looked carefully before finding a stock value.  A stock can go up in its value without good earnings but only the P/E ratio can help you determine whether it can sustain its high position or not. As we have earnings in the denominators part, without the earnings as the backup the stock will eventually fall back down. 

P/E Ratio in layman’s language can be said as how much time a stock will take to pay back your investment if there is no change in the business. A stock trading at Rs. 30  per share with earnings of Rs. 3 per share has a P/E ratio of 10, which is sometimes seen as meaning that you’ll make your money back in 10 years if nothing changes in this specific business.

Is a high P/E better than low P/E? First of all P/E should always be considered specifically for sectors and within then the stocks that come from those sectors, eg you should only compare the P/E ratios of FMCG stocks like ITC and HUL and not with other sector companies like Tata Motors or TCS. Now talking about a high P/E this could mean that a stock’s price is high relative to its earnings and can be said as an overvalued stock, conversely, a low P/E ratio says that the current price is low relative to earnings.

A high P/E could mean that a stock’s price is high relative to earnings and possibly overvalued. Conversely, a low P/E might indicate that the current stock price is low relative to earnings and be said as a value stock or undervalued stocks. 

3. Price-to-Earnings growth (PEG) ratio: Sometimes it is seen that the P/E ratio alone is not enough in that case investors use the Price to Earnings Growth ratio. This ratio helps you to know the historical growth rate of the company’s earnings and thereby gives you an estimate about how much time you will take to make money in this stock. The formula is the P/E ratio divided by the Y-O-Y growth rate of its earnings.

Is a lower PEG ratio better than a higher one? The lower value will always be better as you get a better deal from the stock’s future estimated earnings.

4. Dividend Yields: Last but not the least the Dividend Yields or Dividend Yield ratio is nothing but a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. Extra profits in terms of dividends are always liked by investors, also dividends help your investments grow when the stock value is not appreciated. 

Consider this simple example know how powerful dividends can be: Suppose an investor (Mr. X) would have invested in 1 share of TCS on 1st April 2010 and he holds it till April 2020.

  1. Share Price as on 1st April 2010: Rs.403.88/share.
  2. No of shares bought: 1 nos.
  3. Amount invested: Rs. 403.88
  4. No. of shares held in 2019: 2 nos (1:1 bonus share)[Note: Bonus shares 1:1 was also issued to all shareholders in 2018]
  5. Price of TCS as on 27th March 2020: Rs. 1789.10
  6. No of Share held – 2
  7. Price on 27th March 2020: Rs. 3578.2 (1789.10 * 2)
  8. Capital Gains – Rs. 3174.32 (3578.2 – 403.88)
  9. Total dividend income till April 2020: Rs. 496.5
  10. Total Gains – Rs. 3670.82 (Rs. 3174.32 + Rs. 496.5)

A simple thing to understand is the dividend yields can be so powerful that they can pay for the whole stock price that you had paid for the stocks. We can clearly see here how the dividend income paid the stocks prices of a stock in 2010 and helped Mr. X to generate a good income. Dividend Yields are is one of the most important factors before evaluating the stock value 

Summary: These 4 ratios, when taken individually will not be effective but when an investor combines these methods or valuation it can give him a far better view of the stock’s worth.

Every time the name MDH is mentioned, we automatically start singing,

Asli Masale Sach Sach MDH MDH… 

Such is the Power of the Brand created by a 5th standard dropout who built a Rs 2,000 crore business empire from a meagre Rs 1,500 seed capital. 

We have all grown up eating his Pani puris and Chole bhature’s but now it’s time to look at the man behind the spices, Mr. Mahashay Dharampal Gulati. 

The Early Life 

Mahashay Dharampal Gulati was born in a joint Hindu family on 27th March 1923 in Sialkot, Pakistan. His father Chuni Lal sold spices from a small shop in 1919 and was popularly known as ‘Mahashian Di Hatti (literally translated as the respected man’s shop)

Dharampal Gulati failed and dropped out of school in class five. As a result, his worried father decided to teach him workmanship or a skill that could land him a job. By the age of 15, Dharampal tried multiple odd jobs from clothing to hardware, but could not sustain any of them. 

Eventually, his father made him sit at his shop where he started learning how to grind pepper and other spices. This little stint made him serious about growing his family’s spice business. 

The India-Pakistan Partition

But as soon as Dharampal took charge of the spice business, India and Pakistan were partitioned and he and his family had to forego the spice business and all their assets as they migrated from Pakistan to India. They even stayed as refugees in Amritsar for a short while. 

Delhi – Beginning of the Spice Mission

Not one to cry over spilt milk, he soon travelled to Delhi with Rs 1500 out of which he invested Rs 650 to buy a horse carriage. But he soon realised that the income generated from driving a horse carriage was not going to sustain him. He then decided to go back to his spice roots and sold the carriage to buy a small shop in Karol Baug setting the foundation of the MDH spice empire. 

The Rise of the ‘Deggi Mirch Wale’ 

During the initial days, he preferred outsourcing the powdering process of ‘Haldi’ to a contractor. But unsatisfied with the inferior quality of Haldi, (as contractors used to adulterate the spice), he decided to start his own factory, ‘Mahashian Di Hatti Private Limited (MDH) in 1959.

Soon Dharampal Ji’s younger brother Satpal joined him and every evening, they used to sit together to discuss profitability and developmental activities of the store. 

The spices were sold under the name Pal di Mirch (chilli powder) and Pal di Haldi(turmeric powder) and Dharampal Ji soon began to make a name for himself as he earned the title ‘Deggi Mirch Wale‘. 

The Start of MDH’s Legacy

As business prospered, Dharampal Ji planned to introduce packaged masalas across India. But, this was not an easy task considering most of the housewives in that era preferred freshly grounded spices.

So, he came up with an idea and launched a cardboard box pre-packed series which carried Dharampal Ji’s photograph with a brand promotion message “Hygienic, Full of Flavour & Tasty”, convincing consumers that MDH masalas were of superior quality, taste and flavour. 

Post the success of pre-packaged chilli powder and turmeric, they also launched pre-packaged ‘Garam Masala’, ‘Degi Mirch’, and ‘Kasuri Methi’. 

MDH – A Unique Marketing Style

By 1984, MDH launched its first TV advertisement featuring Dharampal Ji as the face of the brand welcoming guests to a wedding with the slogan. ‘Pandit Ji ke bina shaadi ho sakti hai par ‘degi mirch’ sabji me na pade to shaadi nahi ho sakti’ (The marriage can take place without the priest but not without MDH spices).  

Dharampal Ji featured in all MDH advertisements as he believed that since he has built the company, his presence will imbibe trust among customers more than anyone else. 

Because of this unique marketing strategy, today MDH has created its own distinct brand identity which is not dependent on movie stars but the spice star himself – Mahashay Dharampal Gulati. 

MDH was started by Dharampal Ji in the era when housewives were suspicious of pre-packed spices. But by featuring in his own commercials, Dharampal ji built a unique one-to-one connection with consumers. 

MDH Goes Global 

From a small shop in Karol Baugh, MDH today has nearly 4 lacs retail dealers in India and has a whopping 52 spice blends, much higher than Everest’s 34 spice blends. 

MDH has installed fully automatic machines through which spices are cleaned, dried and grounded. Even after automating these processes, Dharampal Ji has ensured that the taste and quality of masalas remain the same.

His son and heir, Rajeev Gulati has put the company on the global map. MDH’s spices and blends are exported to the United States of America, Canada, United Kingdom, Europe, South East Asia, Japan, U.A.E. and Saudi Arabia. 

MDH – A Socially Responsible Brand 

Apart from being an industrialist, Dharampal ji was also a philanthropist and donated 90% of his salary for social welfare. His philosophy in life was simple, Give the world the best you have and the best will come to you.”

Dharampal ji has been involved in several charitable and social activities through the Mahashay Chunilal Charitable Trust (named after his father)  which operates a 300-bed hospital, a mobile hospital for slums, and four schools in New Delhi. 

A major factor behind the rise of the Rs 2,000 Crore MDH empire is Dharampal Ji’s unwavering focus on delivering ‘quality products’ to the customers.  

In 2019, Mahashay Dharampal Gulati was awarded with India’s third highest civilian award, Padma Bhushan for his contribution to the field of food processing.

Mahashay Dharampal Gulati was also India’s oldest CEO, taking home the highest salary in the FMCG sector of Rs 21 crore in 2017. 

He passed away on 3rd December 2020 following a cardiac arrest.

Indeed, looking back at the journey of “The Spice King’ one can definitely say that his life was full of flavours and he will forever remain in our memories as we continue to sing, Asli Masale Sach Sach MDH MDH.

Investopedia defines market volatility as a statistical measure of the tendency of a market to rise or fall sharply within a short period time or in simple words we can say the ups and the downs of a stock market in a given period time.

Most of the Retail investors have burned their hands while investing in Covid-19 period, and this is especially true for a novice investor, who can be tempted to even pull out of the market altogether.

Market Volatility can be best described as a wide price fluctuation and heavy trading. There can be many factors that cause the market to fluctuate, these can be a good/bad news about a company or a sector, Heavy day trading or short selling, new policy, economic reforms, IPO, budgets, or some quarterly results of a company, these can also be due to foreign institutional investors (FII) or domestic institutional investors (DII) investments.

Let us look a the best strategies that can help you surf the volatile market:

  1. Create a well-diversified portfolio: Concentrated portfolio can be very risky at the time of volatility, avoid building a concentrated portfolio of just a few stocks rather try to have a well-diversified portfolio, try to have the right mix of stocks which can withstand the market fluctuations and help you mitigate the impact of volatile markets.
  2. Keep the long term approach: Investors should not react to short term market conditions and think of staying invested for a longer period, they should avoid emotional investing.
  3. Understanding Risk Appetite: Risk appetite can be defined as the willingness of investors to bear the financial risk with the expectation of generating a potential profit. Every investor should first understand their risk-taking capacity and then plan to invest in stock markets. Without proper analysis of his risk appetite, an investor can easily end up getting into huge losses.
  4. Investors who are approaching retirement: The investors who are about to retire or who have already retired should and are planning to withdraw your portfolio in 3-5 years should focus on investing in less volatile stocks. This can help them to easily withdraw their portfolio 

In a nutshell, one can say that investing in a volatile market implies a great deal of risk. One must be fairly informed about their risk appetite before investing 

What is Infrastructure Investment Trust (InvITs)?

An Infrastructure Investment Trust (InvITs) is like a mutual fund, which enables direct investment of small amounts of money from possible individual/institutional investors in infrastructure to earn a small portion of the income as a return. InvITs work like mutual funds or real estate investment trusts (REITs) in features. InvITs can be treated as the modified version of REITs designed to suit the specific circumstances of the infrastructure sector.

SEBI notified the Sebi (Infrastructure Investment Trusts) Regulations, 2014 on September 26, 2014, providing for registration and regulation of InvITs in India. The objective of InvITs is to facilitate investment in the infrastructure sector.

InvITS are like mutual funds in structure. InvITs can be established as a trust and registered with Sebi. An InvIT consists of four elements: 

1) Trustee

2) Sponsor(s) 

3) Investment Manager 

4) Project Manager.

The trustee, who inspects the performance of an InvIT is certified by Sebi and he cannot be an associate of the sponsor or manager.

‘Sponsors’ are people who promote and refer to any organisation or a corporate entity with a capital of Rs 100 crore, which establishes the InvIT and is designated as such at the time of the application made to Sebi, and in case of PPP projects, base developer.

Promoters/sponsor(s), jointly, have to hold a minimum of 25 per cent for three years (at least) in the InvIT, excluding the situations where an administrative requirement or concession agreement needs the sponsor to hold some minimum per cent in the special purpose vehicle. In these cases, the total value of the sponsor holding in the primary special purpose vehicle and in the InvIT should not be less than 25 per cent of the value of units of InvIT on a post-issue basis.

The investment manager is an entity or limited liability partnership (LLP) or organisation that supervises assets and investments of the InvIT and guarantees activities of the InvIT. Project manager refers to the person who acts as the project manager and whose duty is to attain the execution of the project and in the case of PPP projects. It indicates that the entity is responsible for such execution and accomplishment of project landmark with respect to the agreement or other relevant project document.

Advantages of InvITs:

  1. Diversification: InvITs with multiple assets offer individuals an opportunity to diversify their investment portfolio. Such a feature directly helps lower associated risks and further allows investors to generate steady returns in the long run.
  2. Fixed income: The option to redistribute risks and accrue a fixed income serves as a potent alternative for generating fixed income, especially for retirees. Also, including such an investment tool would help those who intend to plan retirement effectively.
  3. Liquidity: Generally, it is easy to enter or exit from infrastructure investment trust, which directly enhances their liquidity aspect. However, small investors may find it challenging to sell a high-valued property quickly.

Disadvantages of InvITs?

  1. Regulatory risk: Even the slightest change in the regulatory framework like taxation or policies concerning the infrastructure sector would have a ripple effect on InvITs.
  2. Inflation risk: A high rate of inflation has a significant impact on the performance of infrastructure investment trusts. For instance, inflation may increase the sector’s operating cost. Further, an increase in the toll rates would lower the prospect of generating substantial returns.
  3. Asset risk: Typically, investment in infrastructure has a long gestation period, and hence the process of generating returns is often delayed. Such a delay not only takes a toll on the cash flow but further hampers profit projections.
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