The Indian stock market has a lot to offer. There are stocks with high returns, some with low prices and others with both. One of the most popular categories is stocks below rupees 20. It is a great way to invest in the stock market as they provide good returns while keeping your investment low.
Stocks can be a great way to make money but can also be risky. So if you're looking for a way to invest in the stock market that doesn't require a considerable amount of money, you may want to look into buying stocks priced below rupees 20.
The best part about investing in these stocks is that they are affordable and come with many benefits for investors. First, you can make money by investing in these companies because the prices of their stocks keep increasing over time.
This means that if you buy shares from them today, then after some time, you will be able to sell them at a higher price than what you bought them for.
Top Stocks Under Rs 20 in 2023
Here is a list of the best low price shares to buy today-
S.No. | Low Price Shares List 2023 | Category |
1. | Yes Bank | Banking |
2. | Vodafone Idea | Telecommunication |
3. | UCO Bank | Banking |
4. | Bank of Maharashtra | Banking |
5. | Suzlon Energy | Energy |
Factors To Consider Before Investing in Stocks Under Rs 20
When investing in stocks, you need to consider the factors affecting your investment. These factors will help you decide what stocks to buy, how much to invest and when to sell them.
Here are some factors to consider before investing in stocks below Rs 20 in India:
Investment Horizon
This refers to how long you plan on holding your stock. For example, if you only want to hold your stock for a few months or less than a year, then it's best not to invest in volatile stocks or stocks whose prices fluctuate dramatically.
Financial Goals
If your goal is to make money quickly by trading stocks frequently, then it would be better not to invest in any company whose share price has been stagnant for quite some time.
However, if your goal is long-term capital investment growth and appreciation of value over time through dividend payments from the parent company or another source, then this type of stock could be perfect for you.
Volatility
Volatility refers to how much movement there is within the share price of a particular company over time. If there is a lot of volatility, then more risk will be involved with investing in that company because its share price may fluctuate.
Stock Performance
The stock market is a volatile place, so it's essential to do your homework before you make a buy. One of the things you'll want to look at is how the stock has performed in recent years, as well as how it might perform in the future.
You can get that information from historical price data or professional stock analysis- either way, knowing whether a stock has been successful is critical to understanding its value.
Best Low Price Shares To Buy In 2023: Overview
Here is an overview of the best low price stocks to buy in 2023 for long term. Make sure to consider these factors before deciding on investing in these common price shares list 2023-
1) Yes Bank
Yes Bank was founded in 2004 by Rana Kapoor and Ashok Kapoor. It is headquartered in Mumbai. In March 2020, SBI invested Rs 7,250 crore in the bank amid a financial crisis. As a result, SBI now holds around a 30% stake in the company.
YES BANK Limited is an India-based private sector bank providing banking services, including corporate and institutional banking, financial markets, investment banking, corporate finance, branch banking, business and transaction banking, and wealth management. Its segments include Treasury, Corporate Banking, Retail Banking, and Other Banking Operations.
2) Vodafone Idea
Vodafone Idea Limited is an India-based telecom service provider. The Company is engaged in the business of mobility and long-distance services. It provides pan-India voice and data services across second-generation (2G), third-generation (3G), and fourth-generation (4G) platforms.
Its Vodafone Idea business services provide communication solutions to global and Indian corporations, public sector and government bodies, small and medium enterprises, and start-ups. In addition, it offers voice services, broadband services, and content and digital offerings.
3) UCO Bank
The next in our list of top stocks under Rs 20, UCO Bank, formerly United Commercial Bank, was established in 1943. GD Birla founded it and is now under the ownership of the Ministry of Finance, Government of India. UCO Bank is an India-based commercial bank.
The Bank's segments include Treasury Operations, Corporate Banking Operations, Retail Banking Operations, and Other Banking Operations. In addition, the Bank offers personal banking, corporate banking, international banking, and rural banking services.
4) Bank of Maharashtra
Bank of Maharashtra, owned by the government of India, has around 1,900 branches nationwide. It was founded 86 years ago by V. G. Kale and D. K. Sathe. The Bank of Maharashtra Limited is engaged in providing banking services.
The Bank's segments include Treasury, Corporate/Wholesale Banking, Retail Banking, and other banking operations. The Treasury segment includes investments, balances with banks outside India, interest accrued on assets, and related income.
5) Suzlon Energy
Suzlon Energy Limited is a provider of renewable energy solutions. In addition, the Company is a producer of wind turbines.
It offers a range of solar energy solutions, such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission, and life cycle investment management. It is often considered one of the best share under 20 rs in 2023.
Remember, while investing in the stocks, you can use a Share Market Calculator to estimate what amount you would have to pay as a brokerage fee, stamp duty, transaction fees, SEBI turnover fee, STT, GST, etc.
Conclusion
Investing in the stock market is one of the best ways to earn money, but investing in stocks under Rs 20 is not a very easy task, but it’s also possible. First, you need to look for stocks that are available at very cheap rates and have good prospects.
Trading in the stock market is an excellent way to put your money to work for you, but it can also be a risky endeavour. While plenty of stocks are available at low price points, a few are better than others. The above list ranks the best common price shares to buy today under Rs 20 you can consider investing in.
Explore the Share Market Prices Today | |
Yes Bank Share Price | Suzlon Share Price |
Tata Power Share Price | Adani Power Share Price |
SAIL Share Price | IEX Share Price |
TTML Share Price | Axis Bank Share Price |
IOC Share Price | BEL Share Price |
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
To read the RA disclaimer, please click hereResearch Analyst - Bavadharini KS
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I'm an experienced financial analyst with a deep understanding of the Indian stock market, particularly in the context of low-priced stocks. My expertise is grounded in comprehensive market research, analysis of historical trends, and an in-depth knowledge of various financial instruments.
In the realm of stocks priced below rupees 20, I can confidently affirm that this segment offers unique opportunities and challenges. The article rightly emphasizes the potential for high returns and affordability in this category. However, it also rightly cautions about the inherent risks associated with investing in stocks, underscoring the importance of careful consideration before making investment decisions.
Now, delving into the specific concepts discussed in the article:
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Stock Selection:
- The article mentions popular stocks below rupees 20, providing a list for 2023. Notably, Yes Bank, Vodafone Idea, UCO Bank, Bank of Maharashtra, and Suzlon Energy are highlighted. These companies belong to diverse sectors, including banking, telecommunications, and energy.
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Factors to Consider Before Investing:
- Investment Horizon: The importance of aligning stock investments with one's investment horizon is emphasized. Short-term and long-term goals necessitate different approaches to stock selection.
- Financial Goals: The article discusses the impact of a company's stock performance on achieving specific financial goals, differentiating between short-term trading and long-term capital growth.
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Volatility and Stock Performance:
- Volatility: The article rightly brings attention to volatility as a crucial factor in stock selection. High volatility implies higher risk, which may not align with the risk tolerance of all investors.
- Stock Performance: Analyzing historical stock performance and projecting future trends is highlighted as an essential step in making informed investment decisions.
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Overview of Recommended Stocks:
- Company Profiles: Brief profiles of recommended stocks, such as Yes Bank, Vodafone Idea, UCO Bank, Bank of Maharashtra, and Suzlon Energy, are provided. Understanding the nature of the companies is crucial for investors.
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Conclusion and Disclaimer:
- The article concludes by summarizing the potential benefits and risks associated with investing in stocks below rupees 20. It also includes a disclaimer, emphasizing that the information provided is for educational purposes and not a recommendation.
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Explore Share Market Prices:
- The inclusion of share market prices for mentioned stocks, such as Yes Bank, Suzlon, Tata Power, Adani Power, SAIL, IEX, TTML, Axis Bank, IOC, and BEL, demonstrates a practical approach to guiding investors.
In summary, this article provides a comprehensive guide for investors interested in low-priced stocks in the Indian market, combining specific stock recommendations with valuable insights into the factors influencing investment decisions.
