Investment options for students

Student life is one of the best life.Here you can make mistakes and learn from it.Students specially college going students have a lot of time to do extracurricular activities.They can try various things and figure out whether it is working or not.

There is quite disbelieve that investment is only for rich peoples.You can start investing by small amount and make it grow.It's quite a problem that when students invest money they don't really think that they are investors as they are investing small amount but one must think just like an investor thinks while investing money.They must really check the assets in which they are investing,how it is working,how can it grow in future etc.

Let me illustrate various assets in which students can invest and make money work for them.

(1)Bank FD's : This is one of the safest option for investing your money.Here your money will be blocked for some time frame.After that particular time frame you will get your money back with interest on it.The interest in FD's are higher then saving account interest.This is good option for those who has money today that is not need for a particular time frame in future.

(2)Mutual Funds : Mutual fund is a good option for students as they might not be having time for keeping eye on market regularly or not having knowledge so it's one of the best option for them as there will be one of the professional out there who will invest their money.You can read more about mutual fund here.

(3)Stock market : Students can start with investing small amount of money in companies they think will grow in future and after that start increasing their investments by putting small amount of money on regular basis.This will help them in knowing about how to read financials of the company and how to judge which company is good and which is not.You should diversify your stocks.When they start looking at their portfolio growing it will give them encouragement.You can read about basic of stock market here.

(4)Etf's : Students can directly invest in etf's also known as exchange traded funds.It will help them diversify their investment and also provide them market return which is quite good.

TIPS BEFORE INVESTING :

(1)It is highly advisable for students to know all about the background in whichever instrument they are investing in and then decide whether to go for that option or not.

(2)Calculate your risk and margins in advance as it will help them finding how much risk they can afford and where they must invest.

(3)Before investing in stock market research about various brokers out there and compare them and then choose which one suits best for you.

  

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