1. It creates a robust financial base for you
2. It serves as the first step in creating wealth
3. It allows you to experiment on different monetary schemes and take risks freely
4. Moreover, when you invest with little money your risk level is also minimal
5. Being a student with enough time in hand, you can learn about investment through market research for better prospects
1. Mutual Funds
2. Bonds
3. Crypto investments
4. Deposit Schemes
5. Share Market
6. Target Date
7. CD or certificate of deposit
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.
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.
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.
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.
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.
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.
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.