College is a weird juncture in your life. You’re thrown into a world full of responsibilities, new people, and expectations. But at the same time, most families do not focus on financial literacy for teenagers or even people in their early 20s. If you’re wondering whether you should start investing while you’re still in college, then the answer is a big YES!
Even though you might not be making a lot of cash as a college student, you’re not supporting too many people financially. Once you settle down, you’re expected to provide for your loved ones, so taking financial risks might not be the most favourable then. Instead, financial management would be your priority at that point. Right now is the perfect time for you to learn financial intricacies for a prosperous tomorrow.
So, here are 5 ways you can start investing while you’re still in college!
Mutual Fund SIPs
Systematic Investment Plan (SIP) lets you invest in a scheme by regularly taking away a fixed sum of money from you. Mutual funds are a beginner-friendly investment method since they let you invest in stocks without having to track them regularly. Mutual fund managers handle the job for you, and all you have to do is reap the benefits!
Mutual funds usually provide much higher interests compared to a normal savings account. But keep in mind that there’s no pre-promised rate of interest. Even though it’s unlikely, you could end up losing money. So do your research before you move forward.
Stock Market
What would it be like if you could own a tiny portion of your favourite pizza-making joint? Well, the stock market lets you own shares in every major company functioning in the country. It’s a direct reflection of the country’s economy.
Recently, investing in the stock market is starting to get normalised, so there’s a lot of information you can find that guides you through the process. Start by investing in trustable indexes such as the Sensex and Nifty. Once you’re familiar with the process, you can move on to lesser-known companies too.
Cryptocurrency
If you haven’t been living under a rock, then there’s no way you haven’t heard about cryptocurrencies. Bitcoin, Ethereal, Dogecoin – amongst all the internet trends and celebrity attention, cryptocurrencies are emerging as the ultimate investment for the future.
The system is still in its early days, so a sharp rise and fall in prices are often observed. Don’t enter the crypto market with your whole life savings. Instead, use your extra income to understand the scenario and capitalise on the fluctuations as much as you can.
Gold Investment
Gold is undoubtedly a favourite amongst Indians. For centuries people have stored our earnings in the form of gold, but even in modern times, it’s just as relevant as ever.
Nowadays, you can buy physical gold, digital gold, and gold bonds to invest your money. Before your purchase, keep an eye on the market to catch the prices at a low point so that you can maximise your profits. If nothing else, it always makes for good jewelry!
Fixed Deposit (FD)
You can seldom go wrong with a fixed deposit. Compared to the other mentioned methods, FDs are a lot less volatile. This does minimise the potential for profits but also keeps risk at bay.
It’s a great starting point for beginners since FDs are covered under insurance up to a certain amount. So even if things go wrong, you won’t lose all your savings.
Conclusion
Investing is a tough game, so do not get disheartened if you have a hard time figuring things out in the beginning. Do not aim for huge gains from the get-go because that’s usually too risky for comfort. Research every scheme you invest in thoroughly and ask your elders for guidance. Your finance discussions could even become a bonding activity with your parents!
