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What are the Best Investment Options for Students in India?

As a student starting, your investments will have a secure financial future. Take a look to understand various investment options for students to develop strong financial support.

  • 15,269 Views | Updated on: Oct 13, 2023

Due to your restricted earnings and assets, investing in your college years may be difficult. However, to develop a strong financial standing, look for viable investment programs and start investing earlier.

Students who manage their investments will improve their understanding and financial situation over time. Thus, students should begin investing as soon as possible to have a secure financial future and a fulfilling life.

In recent years, the notion of investment for students has gained traction. If you’re a student looking to embark on this exciting financial adventure, this article will walk you through various investment options for students to help you get started.

Investing as a college student: How to get started

Yes, college can be one of the most challenging times to find extra money to do the things you need to do, let alone the things you want to do. However, getting into the investing game does not require a large sum of money.

From the ultra-safe to the daring, here are three ways college students can start investing.

What Are The Best Investment Options For Students In India?

Consider starting with a high-yield savings account

Opening a high-yield savings account is one of the simplest ways to enhance your finances. These accounts pay interest on deposits at rates significantly higher than standard savings or checking accounts while still allowing you to make withdrawals at any time. Interest rates on these types of accounts are expected to rise in 2022.

Invest a little each month

It is critical to get started regardless of the state of the economy. Even if you only invest a small amount, you will be more compelled to follow the market. Most significantly, you can begin to consider yourself an investor. Having money invested motivates you to study and assess your possessions. So starting with a small amount might be quite advantageous.

Sign up for a robo-advisor

If you are not comfortable picking specific stocks or even index funds, you can use a robo-advisor. A robo-advisor constructs a portfolio for you automatically, purchasing funds based on your time horizon and how aggressive you want to be with your investing.

Investment Plans for Students

Some of the investment plans for students are as follows:

Experiment with the Stock Market

Direct equities, or the stock market, maybe an excellent investment option for students if they are ready to take risks. Though trading is a dangerous option for new investors, you may look at a few high-growth stocks with strong fundamentals. To make a substantial profit, you can retain these commodities for a longer period. Strong shares withstood the test of time and gave great returns to investors. Nevertheless, you should familiarize yourself with and educate yourself about this market and the associated risks before entering it.

Dip Your Toe in Mutual Funds

As a student, you could lack relevant knowledge and abilities in the stock market; hence, you can invest in mutual funds. If you prefer taking chances, you should consider investing in stock funds. On the other hand, debt funds may be a decent alternative if you are willing to follow instructions. You may also broaden your portfolio by investing in equity and debt funds.

Talk About ULIP

Unit-Linked Investment Plan is one of the most popular investment options for students. It is a one-of-a-kind plan that offers the best of both worlds, allowing investment and life insurance. What makes this option lucrative for investors is that this plan offers a great deal of flexibility, allowing them to invest in funds based on their risk appetite. Moreover, with the option to switch funds, investors can change and manage their portfolios with varying financial needs and circumstances.

Bonds Hold Importance Too

Bonds might be an excellent alternative for you if you’re seeking attractive options for investment for students in India. Governments and private business organizations use bonds to raise capital from the public in return for a fixed interest rate. You must, nevertheless, invest for a specific period, and at maturity, you will get both your cash and a significant amount of interest.

The Deposit Approach

Consider deposit programs, the safest investment choice of all, if you’re looking for the safest investment options for students. Deposits offer you a predefined interest rate on the money you’ve kept with a bank for a set amount of time. As a result, this is an excellent investing approach for Indian students.

The most critical point for college students who want to invest is also the most pressing: get started right away. The sooner you start learning about the market, the sooner you can start thinking about your financial future. Students might start with small sums of money and expect to expand both their knowledge and their portfolio.

Students should begin investing as early as their first year of college to develop a substantial financial portfolio that will generate favourable returns. However, it is advisable to conduct a thorough study before entering this field of investment for students.

- A Consumer Education Initiative series by Kotak Life

Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

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