Awesome!, you have decided to invest in the stock market for wealth creation. In this post, we will see how to invest using a limited amount of money.
Buying and selling a stock is very easy and a first-grade student can do it. The real problem is buying and holding a stock for wealth creation.
Before giving any recommendation here, You need to define yourself either as an
- Investor or
- Trader
It is very difficult to be both person at the same time because both types of people have the different risk appetite.
Now you can select your risk appetite and depending on which you can select the sector you want to invest in.
- Defensive Sector
- Pharma Companies
- FMCG Companies
- Chemicals Companies
2. Aggressive Sector
- Auto Mobile Companies
- Consumption Discretionary
- Financial Companies (Banks & NBFCs)
Once you have done the basic analysis, you can select industry leaders (large caps).
It is easy to mention a stock name here, but it is not easy for everyone to hold a stock for the same duration of time. Therefore, I am avoiding any particular stock recommendations.