Top 5 Stocks for New Investors in 2025

The Best Stocks to Invest in as a Beginner

Investing in the stock market as a beginner can often feel overwhelming. If you are a new investor, it is essential to prioritise companies with robust fundamentals, a proven track record and long-term growth potential. 

In fact, choosing the best stocks to buy for beginners is crucial to building a strong foundation for future financial growth. With the valuable input of our research team, we at Samco Securities have curated a list of 30 of the best stocks to invest in as a beginner, their current market price as of January 6, 2025, and a few key fundamental metrics.

Top 5 Stocks For Beginner Investors 

• Tata Motors Ltd.

A leading automotive manufacturer in India, Tata Motors Ltd. is one of the best stocks to buy for beginners. The company is renowned for its extensive passenger, commercial, and electric vehicle range. Leveraging its innovative product portfolio and global presence, Tata Motors has demonstrated strong resilience in the face of market challenges.

As of January 6, 2025, the company’s share price was Rs. 775.95 with a PE ratio of 30.52, indicating an attractive valuation. Tata Motors is positioning itself for future growth through significant strides in the EV segment, making it one of the best stocks to invest in as a beginner.

• Oil & Natural Gas Corporation Ltd.

Oil & Natural Gas Corporation Ltd. (ONGC) is a government-owned energy giant and a key player in India’s oil and gas exploration sector. The company benefits from its strategic importance in meeting the country’s energy demands and steady revenue streams, making it one of the best stocks to invest in as a beginner.

As of January 6, 2025, ONGC’s share price was Rs. 254.30, its PE ratio was 7.93 and its EPS was Rs. 32.06, making it an appealing choice for those seeking stable returns. For new investors wondering which shares are best to buy for beginners, ONGC provides a mix of safety and growth potential.

• Bharat Electronics Ltd.

Bharat Electronics Ltd. is a leader in India’s defence electronics sector, supplying cutting-edge technology to the armed forces. The company has also diversified into non-defence areas like rail, civil aviation, smart city solutions and renewable energy, positioning it among the best stocks to invest in as a beginner.

As of January 6, 2025, BEL’s CMP was Rs. 282.10 with a PE ratio of 45.39. With increasing government focus on indigenous defence manufacturing, BEL is poised for sustained growth in the future, making it one of the best stocks to invest in as a beginner for the long term. 

• HDFC Bank Ltd.

For investors wondering, “As a beginner, what stocks should I invest in?”, HDFC Bank is an excellent choice that offers stability and consistent growth. It is India’s largest private sector bank and is renowned for its strong financial performance and customer-centric approach. 

HDFC Bank has a robust balance sheet with diversified revenue streams and consistently delivers steady returns. As of January 6, 2025, the bank’s share price was Rs. 1,710.30 and had a PE ratio of 19.86. Furthermore, its EPS of Rs. 86.14 highlights its strong revenue generation capability, placing it as one of the best stocks to invest in as a beginner.    

• Hindalco Industries Ltd.

One of the best stocks to buy for beginners in the metals sector, Hindalco Industries Ltd. is a dominant entity in aluminium and copper manufacturing. With the increasing demand for lightweight materials in many industries like automotive and packaging, the company is well-positioned for growth.

As of January 6, 2025, Hindalco’s share price was Rs. 574.10, providing investors with a good entry point. Its PE ratio of 22.99 and EPS of 24.97 indicate good valuation and strong earnings potential. Investors can benefit from Hindalco’s exposure to growing industries and its consistent financial performance, making it one of the best stocks to invest in as a beginner.

How to Choose the Right Stocks?

If you are new to the markets, it may be challenging to find the best stocks to buy for beginners. That said, the tips outlined below can help you identify the stocks that may be suitable for your portfolio. 

• Understand the Basics of the Market

You may wonder: as a beginner, what stocks should I invest in? You can start by focusing on the companies you understand, like those in sectors that you are familiar with. Research their financial health, leadership teams and market position to make informed decisions.

• Start with Blue-Chip Stocks

The best stocks to buy for beginners are often large-cap, blue-chip stocks from established companies. The stock prices of these firms are stable and typically less volatile, so they may be a safer option if you are just getting started.

• Explore Index Funds or ETFs

If you are unsure about which shares are the best to buy for beginners, you can consider index funds or ETFs. They help diversify your investment across multiple stocks, reduce potential risks and offer steady growth potential.

• Look for Dividend-Paying Stocks

Some of the best stocks to invest in as a beginner are those that pay regular dividends. They not only provide passive income but also indicate a company’s consistent profitability and financial stability.

What Should Beginners Learn About the Stock Market?

As a beginner, you need to know many key aspects of the stock market, how it works and what to look for. You may find it overwhelming to begin the process of learning about these crucial details. To make it easier for you, we have narrowed down the important aspects that you should focus on to understand the market and find the best stocks to invest in as a beginner.

• Understand Stock Market Basics

You should start by learning how the stock market works by focusing on concepts like shares, indices and trading mechanisms. If you want to get better at finding the best stocks to buy for beginners, these fundamentals can lay the groundwork for informed decisions.

• Learn Risk Management Techniques

Risk management is another key aspect of learning about the stock market. Before you get to finding the best stocks to invest in as a beginner, understand strategies like diversification and setting stop-loss orders.

• Study Different Investment Strategies

Along with considering the best stocks to buy for beginners, you should explore strategies like value investing, growth investing and dividend investing. By understanding which approach aligns with your financial goals, you may improve your chances of success.

• Analyse Financial Statements

A key part of finding the best stocks to invest in as a beginner involves learning to read financial statements like income statements, balance sheets and cash flow reports. Once you know how to evaluate a company's performance, you can identify undervalued stocks.

The Role of ETFs and Index Funds in a Beginner’s Investment Portfolio

How to Construct a Beginner-Friendly Investment Portfolio?

Building a beginner-friendly investment portfolio may seem daunting at first. However, with the right strategies, you can easily find the best stocks to buy for beginners and make your portfolio align with your investment goals and risk preferences. Here are some such techniques to consider. 

• Start with Low-Risk Investments

When constructing a beginner-friendly investment portfolio, look for low-risk options like index funds. These may often include the best stocks to buy for beginners, provide potentially stable returns and minimise the chances of losses.

• Diversify Across Asset Classes

Looking into which shares are the best to buy for beginners is a good step toward smart investments. However, to build a solid portfolio and reduce the overall risk, you should learn to diversify your investments across stocks, bonds, and mutual funds. 

• Allocate Funds Based on Goals

Once you find the best stocks to buy for beginners, divide your portfolio based on timeframes. Direct your short-term savings to safer assets and long-term wealth creation to stocks. This helps you align your investments with your financial aspirations.

• Include Blue-Chip and Dividend Stocks

Incorporate blue-chip stocks and dividend-paying shares in your portfolio. These are often the best stocks to invest in as a beginner because they offer stability and consistent returns. This makes them ideal for building a foundation of financial security.

Tips for Beginners Seeking Professional Financial Guidance

Beginners in the stock market may also require some additional financial guidance from market experts. If you belong to this category of investors, here is how you can seek and make the most of such expert assistance. 

• Research Financial Advisors Thoroughly

A knowledgeable advisor can provide customised insights on various issues, including which shares are the best to buy for beginners. To find a suitable expert, research the credentials, experience and client reviews of different financial advisors. 

• Understand Fee Structures

If you are seeking professional guidance, learn how advisors levy fees — whether through commissions, hourly rates or a percentage of your assets. Transparency here is crucial to avoid hidden costs. 

• Define Your Financial Goals Clearly

Begin by outlining your short-term and long-term goals. This will help you provide clear information about your investment objectives when asking for professional help, and ensure that you receive personalised advice that meets your specific needs.

• Ask About Risk Management Strategies

If you are wondering about making the most of the best stocks to invest in as a beginner, an advisor can suggest a balanced mix to minimise risks. They can also help you understand risk management techniques like diversification and asset allocation.

Beginner-Friendly Investing With Samco Securities

Finding the best stocks to buy for beginners can be difficult at first. However, by choosing the right stock broker, you can make your investment journey smoother and potentially more rewarding. If you are looking for a brokerage partner that you can trust and rely on for the best market insights, up-to-date information and user-friendly app features, Samco Securities checks all the right boxes. Open a demat and trading account with Samco Securities today to access the exclusive in-app features available for our users.