7 Best Investment Schemes for College Students in India, 2022

5 min read

Investing during your college life with your restricted savings is possible. Want to know how? Read on in the blog below about the various investment plans for students.

You may be wondering how you can save money during your college days when you get limited money to spend. And even if you work part-time your payment is not high enough, which makes it difficult to save enough. Yes, of course there are limitations in terms of earning and savings during college days, however there are many good investment schemes that a student can utilize to start investing. Starting investments early in life allows many benefits including giving you a strong financial base.

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Some of the many advantages of investing early in life include:

  • It creates a robust financial base for you
  • It serves as the first step in creating wealth
  • It allows you to experiment on different monetary schemes and take risks freely
  • Moreover, when you invest with little money your risk level is also minimal
  • Being a student with enough time in hand, you can learn about investment through market research for better prospects

So, if you want to know how to invest money for students to gain maximum benefits, here you will get all the required knowledge about the same in this blog.

Also Read: Best Long Term Investment Plans in India

Top 7 Investment Plans or Investment Ideas for Students in India:

 

1. Mutual Funds

The option of mutual funds serve as the best investment ideas for students, especially for the young college goers as it offers flexible ways to accumulate and grow savings in many ways. However, being a novice it is better for students to take guidance from experts before investing in mutual funds. Equity funds are another option for college goers if they love to plunge into risks. But those who like to play safe can invest in debt funds which serve as an ideal choice. Further, the option of combining both the funds to invest is also there. Also, it is equally beneficial if you invest through SIP in mutual funds. This way you can use a small amount like 500 rupees (for mutual funds) or 100 rupees (for SIP) to invest regularly on a monthly basis. Being a very small amount, students can easily use their pocket money to make such investments.

2. Bonds

Bonds also serve as another best choice of small investment ideas for students in India. In bonds, you invest an amount for a particular period to receive fixed interests. So, once your bond matures, you can get the amount invested as well as the interest amount on your money.  You can use either Long term or Short term bonds to invest on. The long-term bonds allow higher returns than the short-term ones.

3. Crypto investments

This is another option that you have in India for students in the form of Cryptocurrency.  However, it is better to gain knowledge about this concept which is showing promising prospects before investing in it. So, you can learn about options like Bitcoin, introduced in 2009 as the first cryptocurrency platform in India.

4. Deposit Schemes

Being students, the best option that most of them look around for investments are the safe options. So, one such safe option for students is the deposit schemes. This is because they allow a fixed interest rate on your investment (though not on a regular basis) that is saved in a bank account. Here also, you have two options of deposit schemes to invest on, namely the fixed deposit and the recurring deposit.  In Fixed Deposit you can invest the amount for a particular period of time to receive good return on investment depending on the short or long investment option you have chosen. You get a high interest rate in FDs. On the other hand, in Recurring Deposit, you must invest a particular amount of money at regular intervals to get the returns. a fixed interest rate on your investment (though not on a regular basis) that is saved in a bank account.

5. Share Market

Another option for students willing to take risk is the share market. However,  here again you need to step cautiously as a novice because it lays certain risks. But at the same time, it also allows high-growth if you are willing to take the risk. However, it is good to gain enough knowledge about this market before you take the risks.

6. Target-Date

A combination of stocks and bonds, target date is another kind of mutual fund that the students can invest on. The target funds allow you to invest with a particular end date. This is a long term approach and will serve the purpose of students.

7. CD or certificate of deposit

Certificate of deposit is a small investment option that helps students in enhancing their savings. They can open a CD or a high-yield savings account with a high rate of interest. The best thing about these schemes is that they allow you to withdraw money any time. In the case of CDs, you gain fixed interest rates for depositing your money in the bank for a particular time period.  Since the amount in CDs doesn’t fluctuate, you get a good amount at the end of the period. Thus, CDs serve as a perfect investment choice for students without risks.

Read More : 5 Best Government Investment Schemes in India .

To Conclude

Now that you know about all the various plans and the safe investment options that you as a student can invest on. All you need is to gather information and start investing soon so that you can gain maximum from it over time in terms of acquired capital. You can also look for various ways on how to invest a small amount of money to find the best options in this regard.

Further, it is always beneficial to acquire knowledge about the various plans and options that are available so that you can invest in the right plan to have maximum benefits.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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