5 min read
Updated on Jan 11, 2023
Investing during your college life with your restricted savings is possible. Want to know how? Read on in the blog below about the best 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.
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
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.
Also Read: Best investment plan for monthly income
Bonds also serve as another best choice of small investment plans 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.
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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.
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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.
Also Read: LIC senior citizen scheme
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.
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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.
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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.
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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When it comes to investment options for students, below are some of the plans that can be considered:
1. Mutual Funds
4. Deposit Schemes
5. Share Market
6. Target-Date Funds
7. High-Yield Savings Account or CDs
To get good returns, you can invest money in the following plans:
1. Mutual Funds
2. Real Estate
3. Stock Market
6. Short-Term & Ultra Short-Term Funds
7. Equity Linked Saving Schemes (ELSS)
The earlier you start to invest in life, the better it is for you to achieve your financial goals by means of small and regular investments. If you start investing in your 20s, it is regarded as the right time as you can reap the benefits of the investment early on in life.
High-quality bonds and High-yield savings accounts are often considered as safe investment options with the highest returns. Further, other safe investments include:
1. Certificates of deposit (CDs)
2. Money market funds
3. Government bonds
4. Corporate bonds
5. Mutual funds
6. Index funds
Yes, these days it is possible to open FD or fixed deposit accounts for students. In fact, FD for students or FD for children goes a long way in funding higher education for students.
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