What are the Best Investment Plans for College Students in India?

What are the Best Investment Plans for College Students in India?

There is one rule of investment, the sooner the better. And even if you have not started working yet, you can still start investing money. All that you need to do is to choose the right investment plans. So, let us today discuss some of the best investment plans for college students.

Mutual Funds through SIP

This is certainly one of the best options for investment that college students can go for. Mutual funds are known for being diverse as well as flexible. Therefore, the savings grow smoothly. We all know that students do not have enough knowledge as well as expertise about the stock market. Thus, their investment in mutual funds must be managed by professionals. If you are not scared of risks, you can even try investing your money in equity funds. On the other hand, if you are risk-averse, you can stick to debt funds. You can invest in mutual funds through SIP as you will be able to get started with a small amount. You can get started with INR 500 each month in mutual funds. As a matter of fact, some mutual funds will even allow you to start with INR 100 per month through SIP.

Cryptocurrency

Another option for college students to invest money in is cryptocurrency. These are basically decentralized virtual currencies that are worth enough to invest your money into. The first cryptocurrency was Bitcoin which was introduced to the market in 2009 and it commenced trading at just  $0.0001. In just a few years from then, the value of Bitcoin grew exponentially. If you think cryptocurrency is costly, then you can look for the subunits of bitcoin, which you can purchase with as much money as you want. The minimum amount for investment varies from one exchange to another. The good news is, you can start investing with just INR 100. However, before you start investing in cryptocurrency, you must understand the concept thoroughly and also have knowledge about the market.

Deposit Schemes

If you are looking for the safest options for investments, you can well consider the deposit schemes since they are the safest of all. As you choose options like Fixed Deposit or Recurring Deposit, you will get a predetermined rate of interest on your money which you will be keeping for a specific period in a bank. There are basically two types of deposits that you will come across; Fixed Deposit and Recurring Deposit.

Fixed Deposit

You would be required to invest your money for a particular period so that you can get a good return on your investment. On the basis of your investment portfolio, you can choose either a long-term or short-term FD. The interest rate is of course higher for FDs than the other savings schemes available in the market.

Recurring Deposit: In an RD, you would be required to invest your money at regular intervals.

Target-Date Funds

This is one more option for investment for college students. This is a type of mutual fund which is a mix of bonds and stocks. When you invest your money into a target-date fund, you need to deposit the money with a particular end date. As the date approaches, the investment will be more convenient and make the potential risk lesser. This is certainly one of the best options for students to go for.

Once you complete your education and get a job, you can also buy a term insurance plan. To know about term insurance plans and the types that are available in the market, you can visit the website of IIFL. You can also use the term insurance premium calculator and see which plan will suit your need.

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