Market Guru in talk with RJ Salil Acharya of Radio City: People can invest in ITC, BHEL, BPCL for good returns in FY22

Anil Singhvi, Managing Editor, Zee Business, says, Investors should expect returns of around 14-15% in the next five years from Nifty and Sensex and it would be okay to expect returns of 12% for this year. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi suggested three stocks, ITC, BHEL and BPCL, for the financial year 2021-22 for investment purposes.

Starting the radio chat, RJ Salil said, at the start of April, the new financial year, everyone thinks that will his/her salary will increase and if it increases then can they invest in the stocks market. Mr Singhvi in his reply congratulated everyone for the beginning of the new financial year and wished that every year remains similar to the last financial year – April 2020 to March 2021. 

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To this RJ Salil said, we all hope the same, but maybe it will be a bit unrealistic to expect this year to be the same as last. So, what one can expect? One must not sit making comparisons with the last year and the new investors, who are sitting at homes, must not make a mistake that this year will be the last. Am I right? Mr Singhvi said, absolutely, because if you look at the financial year 2020-21, i.e. the year that ended on March 31, 2021, Sensex and Nifty has given returns of more than 70% and Nifty Bank has given returns of 77%, you can think of it, now, only in your dream. But, let me tell you what reasonably should be thought. The average returns on Nifty and Sensex in the last five financial years stood at 18% and 22% on Bank Nifty. And in the last 10 years, the average returns stood at 12.50% on Sensex and Nifty and 15.50% on Bank Nifty. 

So, we can take average returns of 10-12% in the mind, reasonably, said RJ Salil. And, Mr Singhvi said, it should be slightly higher. You can have a reasonable expectation of 14-15% for the next five year. And, for this year, it would be okay to keep an expectation of 12%. So, you can still invest with this hope.

RJ Salil in his next question asked, but many people say that we talk a lot about stocks but when we have a look at what has increased then we talk about Nifty and Sensex. So, investing directly in Nifty in the way of SIP is better? Mr Singhvi in his reply said, of course, you can and one simple way to do this is there are many funds related to Nifty and Sensex in which you can invest. There are also exchange-traded funds, these funds are traded on the exchanges and you can buy and sell them directly there. And those, who have to invest on the monthly basis, can buy and sell Nifty futures. So there are many ways if you think that a fund manager is not smarter than you, or you do not have faith in any stock, but you have faith in the index. In 1979, the Sensex started from 100 and look, the level it is at present. It is at 50,000. So, if you have faith only in the index then there are the best ways to buy or invest on the index, you can opt for any of the three ways, choose the one you like and invest. 

Continuing the chat further, RJ Salil asked about the stocks where one can invest being safe and earn from them. Mr Singhvi said, generally we talk about stocks every week, but this is the beginning of the financial year and I would like to provide names of three stocks for this financial year. One of them is ITC, which is trading around Rs 215-217 and you can buy it for this financial year. The other two stocks are BHEL and BPCL, two PSUs, which can make good money in this financial year. So, focus on these stocks for investment purpose.