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5 Investment Tips for Youngsters, College Students



Catch them young is a phrase that means that good habits be inculcated at a young age so that they last long. Apart from the Idea of practical knowledge for students, it is good to start investing early and for a longer duration would help them manage their finances better, in the future. Early Investing also allows them to take small and calculated risks without fear of affecting their livelihoods and future planning. College-going students are young and dynamic and college is one of the best opportunities to get started in the world of Investing.

The hardest part of starting to invest is beginning to think of yourself as an investor because due to lack of knowledge many people believe that investment options are only open to the working class, and the Wealthy Society. But in reality, especially college-goers can be the best investors because they have several advantages.

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While most youngsters in India are hesitating from investing, considering that they have no other financial burden, investment is a handy option to get richer at a later stage. In the investing world, even a little bit of cash can be used to begin building a portfolio. It can be an advantage because in the initial stage you’ll be learning how to invest and deal without the risk of losing a large sum of money.

After studies make sure you start your life on the right financial foot by treating your financial future seriously while you’re still in college.  To help youngsters who aspire to invest but lack the knowledge, here are a few tips to help them make good use of their pocket money and stipends wisely.  

Elucidate the basic difference between savings and investing: Students need to understand that while saving is the safe way to go which offers lower returns, investing in small increments allows the money to grow itself and offers the potential to get high Returns.

Hold on to money: As we all know youngsters have a craze to spend all their money, considering they have a constant supply of cash. But if students are willing to make an effort to save up a portion of their money and invest, all they need to do is open a brokerage account for stock investments and day trading. After Investing you will not reap the benefits instantly, investing in shares of a company is a good way to aim for long-term returns.  

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Explicate basic concepts:  Investing allows a diverse financial portfolio. So it is necessary to teach students the basic concepts of Investing such as stocks, Mutual Funds NSE, Equity, and BSE, among others. Helping with these basic concepts of different variations will empower them with more new options and choices.

Keep an Eye on background research: following background research is one of the most important guidelines that college-goers and young investors need to learn. There are reasonable risks involved in managing investments, before diving into invest one must do their background research. For beginners and youngsters need to check how the company in which they plan to invest has performed on a yearly and quarterly basis. Companies’ past performances can’t dictate future results but provide an overview of the firm’s future curve. You can even watch out for almost all top business news channels which provide a brief of new market Trends. 

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Go for low-risk investment options: Try to Invest in low-risk options: when it comes to investment often, we said calculation is the key to success. For young or college-goers’ investors is quite beneficiary for them to invest in stocks and mutual funds, low-risk options should be considered so they don’t end up losing more money because the stock market involves risk. Planning before investing in any stock market is a must to get a decent return. According to experts’ youngsters need to go for long-term investment.

Never get carried away: While stepping into the world of the Stock Market you must understand that it’s a vulnerable yet addictive place. You should never get carried away after brief success. Brokers often end up with requests but you have to remember that the final authority lies with you to invest in any scheme.


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Prakash Chhabra
Prakash Chhabra
Prakash Chhabra, Executive Director - Sanskriti University.

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