Best Stocks Under 1 Rupee to Invest

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Best Stocks Under Rs 1 in India

A rising trend among investors, especially the youth, is the fascination with stocks valued under 1 Rupee. While the mantra 'higher returns involve higher risks' holds true, the potential for substantial returns from stocks under 1 Rs is undeniable. Let's delve into the unique dynamics of these investments and explore the opportunities they present in shaping portfolios and navigating the evolving stock market. Discovering the best stocks under Rs 1 in India is a strategic move in this investment landscape.

Best Stocks Under Rs 1 in India

Discover the top stocks below 1 rupee in India:

SNo.Top 10 Stocks Under 1 Rupee (as of April 17, 2024)Sector
1.Excel Realty N Infra LtdReal Estate
2.NCL Research and Financial Services LtdFinancial Services
3.Yamini Investments Company LtdFinancial Services
4.ARC Finance LtdFinancial Services
5.Sun RetailRetail
6.Visesh Infotecnics LtdInformation Technology
7.Monotype India LtdPrinting and Packaging
8.Castex Technologies LtdTextiles
9.Shree Securities LtdFinancial Services
10.GV Films LtdMedia and Entertainment

Features of Stocks Below 1 Rupee

  1. High returns: As compared to higher-priced equity, stocks below 1 rupee provide opportunities for great returns. They have great growth potential but are vulnerable and highly stable to market fluctuations.
  2. Illiquid: These stocks are illiquid as the issuing companies are mostly unpopular. This becomes a concern when selling the shares. Usually, individuals with a high-risk tolerance investment in stocks below 1 rupee.
  3. Low cost: These sticks are extremely affordable plus pocket-friendly. An individual can be especially benefited if the price exponentially increases.
  4. Unstable Pricing: These stocks do not achieve substantial pricing. The capital gains are minuscule unless it is not sold off in large quantities.

Understand Before You Invest

Stocks are the shares traded in the stock exchange at a very low or steep value with unpredictable high growth and returns yet associated with high risk. The price of these stocks usually range between 0-30 rupees/stock but can grow to an even higher value with time. These are easy to invest in and require very minimum capital but a good amount of research. When these stocks provide you with stellar returns, they are known to be multibagger stocks. We shall further in our discussion look into some of the best multibagger stocks.

Why are These Stocks a Must in Your Portfolio?

As to note, one thing that is called to be of utmost importance in the world of investment is the mindset of the investor. Some investors like to play with huge risks but unfortunately have a shortage of capital, these stocks are certainly a breakthrough for such investors.

These stocks, apart from bringing viability in a portfolio, carry a number of benefits, especially for the new age investors-the risk-takers.

The reasons why one must invest in these stocks in India, especially of below 1 rupee, can be summarized by the following points:

High Potential Returns:

By now, you must have at least gathered a basic gist on the fact that these stocks have the potential of generating bombarding returns. But how? Well, the logic is very simple, you invest 2000 rupees into some best shares of less than a rupee/stock, it increases to let’s say 2 rupee/stock in a month or so, and there you have your investment at a profit of more than 100% within few months, which is not easily possible even in a case of any high growth equity-oriented stock.

Opportunity to Bag a Multibagger Stock:

Multibagger stocks are as fancy as they sound, if you manage to get your fundamentals correct and identify a multibagger stock you surely can see yourself standing to earn ultimate growth and maximum returns possible. If you may have bought some of the best shares at even 1 rupee, it might be trading at Rs 50 in a few years, thus giving you an unimaginable return provided that you have judiciously studied the background of such a stock.

Cheap Price Point:

One of the substantial benefits of investing in these stocks, is its inexpensiveness. It is easy on your pocket, and you can buy them in bulk without much sweat on your head. It therefore helps you to bring about diversification in your portfolio by saving your interest to invest in other schemes as well.

Cautions to Be Taken

Aggressive investors shall probably have an incomplete portfolio without these stocks but investing in these stocks is not very handy. These shares require a strong base of knowledge and must be acted upon with caution. Some of the factors that you must consider especially if you are new to investing in these stocks are:

Difficult to Access Important Information:

Most of the shares belong to companies that are not very known. To access the background as well as the financials of such companies becomes a very tedious process. The dearth of information is a real issue when it comes to such stocks of the microcap companies, as most of the time these are ignored and not potentially covered by known research firms or traders.

Price Fluctuations:

The price of these stocks can be easily manipulated. Most of the times, the price of the stocks below Rs 1 are subject to artificial inflation/deflation by large traders or promoters. These are also quite prone to pump and dump schemes.

What to Keep in Mind?

  • Seek expert advice: Sometimes, it is an edge to gaze at and compare different avenues through the eyes of someone who has been a long-time player in the field. 
  • Do thorough research before investing: Understand the financials, average annual returns, and compare the profitability, earning capacity, and growth of the potential shares. 
  • Make a calculated decision but do not ignore your instinct as well. 
  • Be aware of false information: Stocks are bound to attract false information, so beware of the same. 
  • Take note of the fact that these stocks are bound to hit the lower circuit at most times. 
  • Look out for debt-free stocks below 1 rupee, as such stocks comparatively have a lower risk of insolvency and have historically been considered high yield stocks.

Important Things to Remember

Do Not Blindly Follow Hot Tips: No matter how credible the source is, never follow a stock marketing tip blindly without conducting thorough research personally. Always select the stocks after doing proper research and analysis on the performance as well as the companies. While some tips can work out to give you huge benefits, the wrong ones can push you down under the risk pretty quickly.

Eliminate Loser Stocks from Portfolio: There is absolutely no guarantee that a stock will rise after a great fall. Know that it is extremely important to be practical about what is possible and what's impossible in the stock market. So, upon realizing that a stock is performing poorly in your portfolio, accept your mistake and sell it immediately to prevent further losses.

Don't Exceed Your Investment Budget Abruptly: While it's true that long-term investments are better than other forms of investment, you shouldn't exceed your investment budget in haste. Instead, decide on a fixed amount and invest it across various good stocks. Rather than investing in only one stock, divide your budget evenly across multiple good-performing stocks and shares.

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