Every investor has unique financial goals. It could be building wealth, earning consistent income, or achieving long-term growth. Ultimately, the goal is to surpass the returns of traditional savings or fixed deposits. Some investors take risks for high-growth potential, while others prefer undervalued stocks for appreciation, and many seek dividends and regular income. This article will guide you through income stocks, as well as value and growth stocks, helping you find investments that align with your style and goals. A well-rounded mix of these stocks can enhance your portfolio's diversification and boost your investment strategy.

• Income stocks are reliable, dividend-paying stocks for those seeking steady income with lower risk.
• Value stocks are priced below their actual worth; these stocks present great buying opportunities for long-term gains.
• Growth stocks are shares of companies expected to outpace market growth, typically reinvesting profits instead of paying dividends.
• A diversified portfolio combining income, value, and growth stocks balances risk with potential returns.

Income stocks come from well-established companies that regularly distribute dividends to shareholders. These stocks provide a stable and predictable source of income and often attract conservative investors who prioritise reliability over aggressive growth. These stocks generally have low price-to-earnings (P/E) ratio.

Here are the income stocks for your portfolio:

Indian Oil Corporation (IOC)

Indian Oil Corporation (IOC) is India's one of the biggest oil and gas companies with a strong history of paying rich dividends. It is a popular option for investors seeking steady income. Offering a dividend yield of 6.62% and a 5-year compound annual growth rate (CAGR) of 16.49%, IOC is considered a income stock for a stable portfolio.

Vedanta Ltd.

Vedanta is involved in mining and oil production and consistently pays dividends. Its diversified business reduces volatility, offering more stability. With a dividend yield of 6.07% and a 5-year CAGR of 27.83%, Vedanta is another income stock for your portfolio.

Bharat Petroleum Corporation Limited (BPCL)

BPCL is a strong player in the oil sector, and one the income stocks, known for its reliable dividend payouts, offering steady returns with relatively lower risk. With a dividend yield of 5.8% and a 5-year CAGR of 15.03%, BPCL is an excellent choice for investors looking to generate consistent income through dividends.

Value stocks are shares that are priced lower than their actual worth despite having strong financials. These companies are undervalued in the market, offering the potential for significant long-term returns. Investors choose value stocks with the expectation that the market will eventually recognise and correct the stock's price to reflect its true value.

Here are the value stocks for your portfolio:

Power Finance Corporation (PFC)

Power Finance Corporation (PFC) is a leading financier of energy projects with strong earnings but is currently undervalued. It also offers solid dividend payouts, making it an attractive choice for investors. PFC has a price-to-earnings (P/E) ratio of 5.9 and a price-to-book Value (P/BV) ratio of 1.5. These figures make PFC a value stock for your portfolio.

Bank of Baroda

Bank of Baroda, one of India's largest public sector banks, is currently undervalued despite its strong financials. With a P/E ratio of 6.8 and a P/BV of 0.9, it is an excellent choice for investors looking for value stocks in the financial sector.

Oil and Natural Gas Corporation (ONGC)

As a key player in oil exploration, ONGC's low market price positions it as a value stock. It has a P/E ratio of 7.9 and a P/BV of 0.7.

Growth stocks are shares in companies expected to grow faster than the market average. These companies reinvest their profits for expansion instead of paying dividends. Investors usually seek capital gains from growth stocks rather than immediate income.

Here are the growth stocks for your portfolio:

Trent Ltd.

Trent, a rapidly growing retail company within the Tata Group, operates well-known brands such as Westside and Zudio. With its rapid store expansion, the company is set for long-term growth. It has achieved a five-year sales CAGR of 36.7% and has a P/E ratio of 174.9, indicating its aggressive growth strategy.

Adani Green Energy

Adani Green, a leader in renewable energy, has experienced impressive growth recently. With India's growing emphasis on renewable energy, this stock has substantial long-term potential. Its five-year sales CAGR of 35% and a P/E ratio of 280.6 highlight strong investor interest and the stock's aggressive growth, making it a growth stock for your portfolio.

Zomato

Zomato, one of India's largest food delivery platforms, has grown rapidly and shows promise as a growth stock. Its five-year sales CAGR of 56% and P/E ratio of 435.7 highlight its potential.

Choosing the right type of income stocks, value stocks, or growth stocks, depends on your financial goals and risk tolerance. Income stocks provide stable dividends, value stocks offer potential buying opportunities, and growth stocks promise substantial capital appreciation. By diversifying your portfolio with all three types, you can effectively manage risk while capitalising on various market opportunities.