There is a famous saying that states, “If you save money today, it will save you tomorrow”. The value of money must be learned at an early age. Most importantly, knowing how to invest it in growing wealth is very important.
There are a lot of college students who do part-time jobs to finance their own expenses. However, most of them make the mistake of spending it all, sometimes on unnecessary things too. This is because of the common and silly belief that “making investments” is an elderly thing.
College students should take an interest in investments in order to learn its nitty-gritty before they are fully prepared to step into the corporate world. For starters, one can begin by investing in the stock market. It is because there are plenty of options there and a lot to learn. To get a clear and better understanding of how it works, click here to open an account.
On this page
Important Investment Tips For College Students
Just like earning from an early age through part-time jobs helps one in managing finance, investing early can help in growing wealth. A wise investor is not born in a day. A person who keeps learning and investing at a young age grows into an intelligent investor in the future.
Every college student should make investments, whether it is small or big. Just keeping the following tips into consideration would be helpful enough for a good start.
Acquire Knowledge On Investing
A college student can get a double advantage in trying to gather knowledge about investment.
- First, one will learn and understand its concept early while there is still time, which is a good thing.
- Second, he can improve his reading habit. Yes, one should acquire knowledge by reading books, news articles, blogs, etc. on investments and the stock market.
It is a huge concept, and one can never learn enough. So, take enough interest in the subject to learn more.
Keep A Track Of Stock Market
The Indian stock market is a huge investment sector with lots of options and happenings. Keeping track of it and trying to understand its nature would help one in the long run. Try to keep an eye on which shares are performing well, what is the current rate of specific bonds and securities, etc. This helps one to grow his analysis of power and capabilities.
Start With Small Amounts
Step into the stock market by making a small investment. One may even start with INR 1000 to give it a try. For this, he needs to open a Demat Account and a trading account as well. One can show his part-time earning as his income for that purpose.
Making an investment with small amounts is not for earning huge profits or rewards. It is for one to understand how the market works. Practical knowledge is the best lesson and one can learn more about it.
Study The Market Mechanisms
Many experts today offer guidance to investors and, although it is always advisable to consider an expert’s opinion yet, students should also consider doing their own research as well.
Try to gather information about the depositories in India, what are its functions, how the entire trading process works, who can help to open Demat Account, etc. One should invest his leisure time in learning all this to become a wise future investor in the future.
Open A Demat Account For A Good Start
Yes, you can open a Demat Account and buy a small number of shares or securities. In the stock market, almost all the trading process involves Demat Accounts. It helps in storing the share or security certificates electronically. It would help one in understanding the importance of these documents, what purpose they serve, and so on.
What Are The Features Of a Demat Account?
Investors who have been in the stock market for a long time now are well aware of the importance and functionality of a Demat Account. For college students who are new to the investment world, it must be a brand-new concept. Before you open Demat Account, here are the features to give a clear picture of the subject matter.
- A Demat Account is just like a bank account, it just serves a different purpose. It is used for storing shares, bonds, government securities, ETFs (Exchange-Traded Funds), etc. electronically.
- One can transfer his shares easily with the help of a Demat Account just by signing a DIS (Delivery Instruction Slip). This needs to be deposited into the concerned Depository Participant (DP), which can be easily done online.
- One can even pledge the securities he holds in the Demat Account for availing loan from the banks. All the shares and bonds fall into the category of assets, which is why they are validated by the banks for a loan.
- One of the best features of a Demat Account is that it can be frozen for a temporary period of time if the investor wishes to do so. One can plan to take a break from the stock market for a while and freezing the account for that period can ensure its security.
- All the instructions that one needs to send to his Depository Participant can be done online. The NSDL (National Securities Depository Limited) offers the “speed e-facility” under which this action is granted.
This brings us to the conclusion that college students who are willing to step into the investment sector can start with the stock market. It is one of the easiest and simplest ways to invest. There are plenty of options to choose from and it covers a lot of industries and economic sectors.
The purpose of starting at a young age is to take enough time to understand the functioning of the stock market. Also, an individual steps into the corporate world mostly after completing a college education. Prior knowledge of investments can help them in establishing their financial life ahead.
Image source: Freepik Premium
