Investing in your college life may not be a facile job because of your restricted earning and savings. But try to find some investment plans and start investing early to make a robust financial condition. The early investment brings a plethora of advantages, like:
- Building a strong financial background
- The first step for building wealth
- You can experiment with your risk appetite freely
- Since you have little money to invest, hence your risk will be minimal
- Ample time for investment and market research
7 BEST INVESTMENT PLANS FOR STUDENTS
- Mutual Funds
- Deposit Schemes
- Share Market
- Target-Date Funds
- High Yield Savings Accounts or CDs
PLUNGE INTO MUTUAL FUNDS THROUGH SIPs
This is one of the best investment options for college students. Mutual funds are diverse and flexible, and thus, they help your savings grow manifolds. Since students don’t have adequate knowledge and expertise about the stock market, they should invest in mutual funds managed by professionals. If you are a risk lover, then you can explore equity funds. But if you are submissive, then debt funds could be your ideal choice. You can even create a diverse portfolio by splitting your investment into equity and debt funds. Investing in mutual funds through SIP could be the best choice at this phase as it allows you to invest a small amount of money at regular intervals. Initially, you can start investing Rs.500 per month in mutual funds. Some mutual funds even allow SIP amounts as low as Rs.100 per month. A student can save this amount from his/her pocket money or stipend and invest that amount in SIPs.
Are you looking for some intriguing and best investment options in India for students? Then, bonds could be an opposite choice for you. The government and private companies usually take money through bonds from the public in return for fixed interest. But you need to invest for a specific period, and on maturity, you will get your principal amount and a good amount of interest. Two types of bonds are in the market (Long term and short term). Long-term bonds generally offer higher returns as compared to short-term bonds. Therefore, this is one of the safest investment options for students.
ACQUIRE KNOWLEDGE ABOUT CRYPTO INVESTMENTS
Cryptocurrency is another best investment plan in India for students. Being a student, you should always try to acquire knowledge about the crypto market. Cryptocurrencies are decentralized virtual currencies that have shown some great promises from their beginning.
Bitcoin is the first cryptocurrency that was introduced in 2009 and started trading at $0.0001. Over the past few years, its value has grown exponentially. Students may consider cryptocurrencies expensive, and that’s why they often ignore this market. Though Bitcoin’s writing value is around Rs 800,000, subunits of bitcoin can be purchased on how much money you want to invest in it. The minimum investment amount varies from exchange to exchange. But with Rs. 100, you can even start your investment. Since this is a novice market, hence you should understand the market completely before making an investment.
CONSIDER DEPOSIT SCHEMES
Are you looking for some of the safest investment options for students? Then, consider deposit schemes because they are the safest investment platform among all. Deposits will offer you a predetermined rate of interest sporadically on your money that you have kept for a certain period with a particular bank. So, this is the best investment plan for students in India. Generally, two types of deposits are available in the market.
- Fixed Deposit: Here, you need to invest your money for a certain period to get a good return. Based on your investment portfolio, you can either choose short-term or long-term FD. The rate of interest is higher for FDs as compared to other savings schemes.
- Recurring Deposit: You need to invest a certain sum of money at regular intervals under this scheme.
EXPLORE SHARE MARKET
If you are a risk-taker, then investing in direct equities, i.e., the share market could be the best investment option for students. Though for newbie investors, trading may be a riskier option, still, you can consider some high-growth stocks that have robust fundamentals. To get a good return, you can hold these stocks for a longer period. Strong stocks that have surpassed the test of time offer good returns to investors. But before plunging into this market, you should educate yourself about this market and the risks. Once you will gain some knowledge and become confident, you can gradually enhance the stakes.
This is another type of mutual fund that comes with a mix of stocks and bonds. While investing your money into a target-date fund, you need to invest with a specific end date (e.g., retirement). While approaching this date, your investments will become more conventional and will lessen your potential risk. Since students need to think more about their long-term financial goals, this is one of the best investment schemes.
START WITH A HIGH YIELDING SAVINGS ACCOUNT OR CDs
This is another best small investment plan for students who want to boost their savings. You should open a high-yield savings account or CD (certificate of deposit). The interest rates for these accounts are much higher than conventional savings or checking accounts. With these investment schemes, you can withdraw your amount at any time. These are the savings options around. CDs will offer you a fixed rate of interest in exchange for you committing money to the bank for a specified time. Now suppose, you keep the money for your next year’s tuition and you want that in a super-safe account (won’t get fluctuated with the stock market), then a CD will be your perfect choice.
These are some of the best investment plans in India for students in 2022. Start investing early so that you will learn more about the financial markets and risks. Students, who are planning their investments now, will grow both their knowledge and capital over time. Thus, to make a secure financial future and lead a scintillating life, students should invest early.