Penny stocks are one of the most interesting investment options preferred by several investors. Although highly risky and volatile, penny stocks or shares between 1 to 10 Rupees give investors a great opportunity to run substantially higher returns with very low capital investment. There are several benefits of investing in shares between 1 to 10 Rupees. You can pick up and invest in several different ultra penny stocks for only Rs 5,000 – 10,000. Investing cautiously by calculating risks in ultra penny stocks protects your overall portfolio from market risks associated with penny stocks. Even if your penny stock investment becomes nil, you will not have to suffer a huge capital loss.
The popularity of penny stocks has increased throughout the years. The main reason behind this is the fact that several shares between 1 to 10 Rupees have performed exceptionally well and more than expectations in the past. Every year we hear stories of prices of penny stocks skyrocketing and increasing investors’ wealth exponentially. But is the future 10 years from now the same for these ultra penny stocks? What are the trends and how can we make the best investment decision while buying shares between 1 to 10 Rupees? We will answer all these questions in the article.
Upcoming Future of Ultra-penny Stocks
Startups Stocks to rise in Future
India is becoming a hub for startups. With the government’s support and boost morale, the youths in India are taking up new ideas to venture into new investment opportunities. Moreover, these new businesses are being set up in almost all industries. Only in the last few years, we have seen companies from ed-tech, fintech, and other industries becoming unicorns and raising millions of dollars through funding from top investors. Many penny stocks are shares of these startups that have very low market capitalizations, and subsequently very low stock prices. Some are also ultra penny stocks, i.e; shares between 1 to 10 Rupees that go unnoticed by many. A few of these penny stocks are going to become multi-bagger in the upcoming 10 years. Hence, we can do fundamental research and buy shares between 1 to 10 Rupees that have high chances of becoming successful in the future.
Ultra penny stocks or shares between 1 to 10 Rupees are usually very unpredictable, mainly in the short term. We have seen how many of these stocks keep hitting their upper or lower circuit for no reason. The extremely low prices of these stocks also make them easy to be manipulated. A few investors can buy these stocks in high volume and increase the price artificially. However, the trend remains only for a relatively shorter period. In the long run, the top-performing ultra penny stocks are usually those that are fundamentally good. This means that the actual company whose stock is being traded has done good business in the years to garner investors’ interest. A few of these shares between 1 to 10 Rupees also become reputed companies and their prices become highly stable. The best way to identify these stocks is by doing in-depth research about the company, knowing its business sustainability and the possible growth shortly.
Gaining knowledge about companies’ fundamentals will help you choose the top penny stocks
Making Investors Rich
Well, besides being risky, penny stocks have a commendable history of growing investors’ wealth by substantial margins. As said, every year is filled with examples of shares between 1 to 10 Rupees that outgrown 10 or even 100 times in a few years. Investors, who were wise and lucky enough to have had invested in such stocks become millionaires or billionaires in a very short period of time. The upcoming 10 years will offer you 1000 such examples where investors would have increased their wealth manifold. Having said this, you should not jump into and invest in penny stocks for the reason that some have become rich. You should do your own research, have your financial aims, and your own risk appetite before making any investment in penny stocks. Many investors lose their wealth just in pursuit of copying someone. You should not fall prey to greed and make a very calculated approach while investing in penny stocks.
Availability of More Penny Stocks
The number of penny stocks or shares between 1 to 10 Rs is going to increase in the coming years. As more and more startups are built and subsequently more companies are getting listed, the number of companies with shares like ultra penny stocks will be available for the investors in the stock market. This is equally compensated with the rise in the number of investors, particularly the retail investors. We may also see new laws and regulations for the protection of retail investors.
Sound Investment Making Approach
Penny stocks are often seen as an instrument to gamble with, which is in its most part wrong. It is true that penny stocks are highly volatile and often unpredictable but that does not make them a gambling instrument. Investors gambling by investing in penny stocks are the ones that lose money. With the ever increasing accessibility of financial knowledge, we will see future investors making more calculated decisions. This future smartness among investors coupled with new regulations, and new tech will increase the reliability of penny stocks.
Now since we have made speculation on the future of penny stocks in the Indian stock market, let us know the best of the kind available right now to purchase.
Top Penny Stocks to Buy in 2022
|Pil Italica Lifestyle Ltd||Rs 7.6|
|Eastern Silk Industries Ltd||Rs 5.3|
|Bhandari Hosiery Exports Ltd||Rs 5.6|
|Vasa Retail and Overseas Ltd||Rs 5.15|
|Tirupati Forge Ltd||Rs 8.86|
|Kanani Industries Ltd||Rs 8.9|
|Mittal Life Style Ltd||Rs 10|
|Visagar Polytex Ltd||Rs 1.15|
|Usha Martin Education And Solutions Ltd||Rs 5.2|
Penny stocks, no doubt, carry a high investment risk. However, the risk is common for all equities investment, it only varies in degrees. For bearing higher risk, you will also get the chance to earn much higher returns. Ultra penny stocks or shares between 1 to 10 Rupees give such an opportunity to investors by allowing them to invest in multiple stocks even with very low capital. Make in-depth research, make your top picks, and use a diversification approach while investing in penny stocks. Only by having proper investment knowledge you can capitalize on the high return offering potentials of the penny stocks.