Should we invest in Infosys shares now for long term benefits?
New Delhi : Stock markets and shares have become quite the most popular choices of investment nowadays. But choosing the right investment option from the stock market could be a tricky task. Investing in shares has its advantages, provided you choose the right one to invest in. The investment can be made in the form of short term or the long term. Before investing, you should always check up on the share market history, recent performance, risk factors, tenure, advantages, and disadvantages. There are a plethora of companies to invest in the share market and Infosys is one of the prominent names among them. It has kept a good track record over the past years. However, in order to find out whether Infosys shares are a good investment option for the long run or not, its performance, interest rates, and risk factors should be scrutinized.
Infosys shares
Infosys is a renowned name amongst the public nowadays; be it technology, IT services or career consulting, Infosys always comes in the topic in this day and age. Not to mention, it also has a great demand in the stock market. It has constantly been gaining profits over the decade.
If you look at the recent Infosys share price history, it shows some ups and downs in the stock market, however, the graph is mostly upwards. Owing to these reasons, it is a great deal to invest in Infosys shares.
Investment in Infosys Shares for the Long Run - Yes or No?
It’s true that there is always a risk involved while investing in the shares. But you can get a good profit if you go for the long term tenure. Infosys is one of the rising companies nowadays in the share markets. Before investing, you must check the share price of the stock you are choosing to invest in. Checking the Infosys share price might help you to get a kick start but you need to rely on other details as well. You need to consider some crucial facts before starting investing in the share market.
If you are a beginner investor and don’t know how to invest in the stock market, you will end up making hasty decisions. But you can opt for the right one by analyzing the terms and conditions as well as the performance of the policies over time. To understand if it is the right decision to invest in Infosys shares in the long run, we need to find out the benefits and the risk factors involved in the shares. Before giving any verdict, let’s discuss the benefits and drawbacks of investing in Infosys shares.
Benefits of investing in Infosys shares for long term
There are many benefits of investing in the long run plans. Some benefits of investing in Infosys shares are as follows.
Cost-effective
The Infosys share price is cheap, which makes it affordable for investors. This is a pretty good choice if you want to buy inexpensive shares and get a good return.
Great performance history
The graph of the stock market history over the decade shows that Infosys ltd share price was always at or near the leading position. The performance history of Infosys shares makes it a trustworthy investment option.
Interest rate
It is better to invest in Infosys shares for the long term since it gives the low rate interest environment. Sure it boosts up your return in the short-run, but you will get a much higher return if you hold the shares in the long run.
Consistent and trendsetting plans
The company holds a good spot in the market because of its firm, stable and future-oriented plans.
Risk factors you need to know
Investing in the stock market has many risk factors and Infosys shares are not an exception. The risk factors involved in Infosys shares are mentioned below.
Market risk
Fluctuation in the market can affect the return rates and the investors may face loss. This is known as market risk. There is a certain chance of failure of the returns due to the inflow of cash in markets. You may not get the expected returns.
Interest risk
It is not guaranteed that the Infosys share price will be the same in the future as Infosys share price today. Similarly, interest rates can not be guaranteed. So, if any turmoil in the market reduces the interest rates, your return rates will go down as well.
Rival risk
There are many rival companies that almost provide the same facilities as Infosys. If somehow, the rivals provide a better return, then it is difficult to get good returns as Infosys will lose most of the shareholders.
Inflationary risk
The risk of losing the buyer ability is the most worrisome for the investors. If Infosys is going through a loss, the company, as well as the shareholders, face the problem.
Headline risk
The news is the main concern for the company. If a rumor starts, it can drag the share price down and hence it impacts the returns
Bottomline
Infosys shares are a great choice for investment if you are willing to go for a 3-5 year tenure. Over the years, Infosys has made substantial profits in the share market and the stable performance took its rightful place. In the year 2019, between August and October, there was a brief downfall of Infosys share price, but from November onwards it again started to spike and is still keeping up.
It is difficult to choose whether or not to invest in shares. But it can generate a good return if invested for the long run. Owing to the reasons listed above, it seems to be a good option to invest your assets in Infosys shares in the long run. However, investing in any plan or share requires proper knowledge and planning. Investing directly in the stock market can be hectic as you will have to manage the investment on your own. It is advisable to study all the above-mentioned factors, the terms and conditions of the investment option before starting with the investing.
