Educating Investors

Safe & Low-Risk investment2 min read

Are you looking for investing in the stock market but at the same time afraid of the risk that comes into play before thinking of investing your hard-earned?

Don’t worry then this blog is for you, there are many stocks that you can invest that have low risk but can give high returns. Before deep diving in them let us first understand what is a risk?

Investopedia defines risk as “The chance that an outcome or investment’s actual gains will differ from an expected outcome or return.” this also includes the possibility of losing some/ all of the original investment.

Risk can be further divided into two types High-Risk Investment and Low-risk Investment: 

  1. High-Risk Investment: A high-risk investment is one which can either have a large percentage chance of loss of capital/under-performance or it can give you high returns. 
  2. Low-Risk Investments: A low-risk investment involves less risk, these stocks are also called defensive stock, they are less volatile. 

Stock Market always posses some risk with it, but we can prefer to have the lower one. Let’s have a look at some of the low-risk stocks:

  1. Godrej consumer product ltd
  2. ICICI Prudential Life Insurance
  3. Colgate Palmolive (India) ltd.
  4. Tech Mahindra Ltd.
  5. Marico Ltd.

Investors can also prefer to invest in StockBasket – India’s first long term buy and hold investment platform, it has ready-made expert-curated baskets of stocks.

The baskets are broadly classified into the categories mentioned below:

  • Thematic: long-term themes like growing consumption and rising rural demand. 
  • Goal-Based: Accumulate corpus, child’s education, basket for retirement planning.
  • Risk-Based: High-risk and Low-risk basket.
  • Time-Horizon based: 5-years and 10-years baskets.

To invest as per your risk appetite one can invest in 5 Year – Low Risk – Lite and 5 Year – Low Risk – Regular basket, these basket are expert-curated ready-made baskets of stocks and are designed for investors who are willing to take the low risk for a 5 year period. The stocks in these baskets are considered to be the safer heavens during the time of bloodbath in the markets. 

These stocks come from the sectors that are called the pillars of the stock market and are usually considered the “defensive” stocks. Companies in these baskets have lower volatility, low to nil debt, stable growth and efficient management which can help you gain stable returns.

Investors should try to invest in quality stocks and stay invested in them for the long term to create huge wealth.

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