What are the investment plans for college students? What are the best mutual funds for students? How to start investing as a student?
If you are a college student and you are wondering all these questions, then congrats! You are already on the right track because you are thinking of putting your money to work.
But one must know that investing demands knowledge, research, risk, patience, and the curiosity to learn. Therefore, if you are a student, then here are the things you must do before stepping your foot into investing. Let’s learn that first.
It is said that a little knowledge is very dangerous. So, before you start investing in any stock, mutual funds, etc, you must do the following:
Acquiring knowledge about the thing before you are going to start is the most important step. Investing without knowledge is a gamble. Sometimes you may get highs while most of the time you will lose. So, to ensure you don’t get into big losses, you must learn how the stock market or any other investment works.
If you are wondering where you can learn investment, then explore the course page of FinnovationZ. The company is known to provide one of the best stock market training for beginners.
Once you are done with the stock market training, you can start with opening a Demat Account with a trusted broker like Zerodha or Upstox.
If you aren’t aware of the account opening process, then read our blog on how to open a Demat Account.
Again, if you are reading this, then you are among very few people who understand the importance and power of investing while you are studying.
Here are some investment ideas that you may follow:
The best investment option for college students could be to invest in mutual funds. On being asked by a college student, Raj Khosla, the Founder and Managing Director of Moneycontrol.com replied that he can create a huge corpus by leveraging the power of compounding. He can opt for an SIP of Rs 1500 in Franklin India Ultra Short Bond Fund-Super Institutional for the short term.
Investment in mutual funds should be a compound of equity and debt instruments.
However, if you are looking for a longer horizon, you can put Rs 1500 in Kotak Standard Multicap Fund for a longer horizon.
Launched on 11 September 2009, Kotak Flexicap Fund belongs to Kotak Mahindra Mutual Funds. Its risk grade is below average, the riskometer is moderately high, and its return grade is also high.
Kotak Select Focus Fund has an asset size of Rs 19,228 crores and the scheme has provided returns of 14.57\\\% since its inception.
Launched on 13 January 2006, Franklin India Smaller Companies Fund belongs to Franklin Templeton Mutual Fund whose risk grade is below average while the riskometer is moderately high.
This mutual fund scheme falls under the Small-Cap Equity category and carries an asset size of Rs 7517 crores. Since its inception, the scheme has offered a return of 15.55\\\%.
Note: Do not invest in any scheme blindly. Do your research properly, make strategies, have proper documentation, approach a trusted broker, then invest.
If you have an interest in the stock market, if you think that you understand the market well, then upon acquiring knowledge on how the stock market works, you can also invest in stocks in the stock market. The stock market could give you huge returns in the long run. Therefore, firstly, master the art of investing in the stock market, then start investing.
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