Stock Market

5 Best Ways On How To Start Investing As A Student In India!

Meeting new people, making friends while adapting yourself to college are some of the big changes college-going students face after high school. Most of them want to find better opportunities to earn to take care of their petty expenses all by themselves. If you are a student in India and looking where to invest your money then the stock market would be one of the best options for you! Let’s know how to start investing as a student in India!

Is Stock Market good for students?

With the pandemic still going on, affecting various job opportunities and making the competition tougher than before. It is the stock market that remains unaffected. Students who wish to become financially literate and independent can plan of investing in it. As it does not require huge capital making it affordable for everyone to begin investing.

As you must have heard how the pandemic has resulted in the lowest economy, hitting the GDP to rock bottom, giving negative growth. The stock market still is breaking all the records, while others may term it as “gambling” but with the right set of mindset towards the market & proper planning and decision making, you can study the price of stocks.

how to start investing as a student in India
Source: Google Images

How to start investing as a student in India?

If you are wondering, “how do I invest as a student?” We can understand you, so here with 5 best tips to kick start your stock market journey!

#1 Ask yourself – why being a college student, do I want to invest in the stock market?

Let us tell you that before knowing how to start investing as a student in India, you must know the purpose of doing this! Ask yourself, WHY!

Be well aware of the fact that long-term success would require a lot of your efforts, patience and discipline. You have to focus on your college studies too. With which you are left with small time to do thorough research about the market, know which stocks perform well, how to invest in them and more!

Try weighing your other commitments like doing internships, being in sports or literary clubs, doing other community works at college. Could you still handle your stock market investment portfolio as a student? You can do many things while managing your studies and investment, but practically it is not that easy.

#2 Make your psychology that of an investor one!

You are entering the world of the stock market as a student; you then also need to have that level of the psyche to know where and how to invest your money into!

Remember, we always say this, as an investor, your mental attitude and habits either can be your greatest support or the biggest enemy. Please, do not let yourself fall into this disastrous trap of buying high and panic selling into low. This can be one of the temptations caused by unprecedented social pressures.

It is best to avoid this temptation of having short term gains when you can catch the big fish by being more patient and diligent. Have a healthy dosage of FOMO [Fear of Missing Out], which helps you in molding your investor psychology in accordance with the working of financial markets.

#3 Go for a realistic plan/strategy while investing as a student in India

It is a fact that conducting a very detailed investment analysis would take a lot of your time. Being a student, it is quite evident you would not find both the time and focus to do it properly. So, what is the way out?

Set a realistic strategy! That you can easily implement in your free yet limited time. And what are the best stocks for college students to invest in India? Before that, you need to know how to manage your funds. Begin regular investing in your diversified investment portfolio of index funds, mutual funds or the exchange-traded funds [ETFs].

how to start investing as a student in India
Source: Google Images

This would prove to be one of the most advantageous strategies for being a college student. Also, if you are willing to shell out a bit more money, then you can get your funds managed by a funds manager. But being a full-time college student, you still wish to actively manage your stock portfolio then go for those business stocks priced a little below their liquidation value.

Also Read | Basics of Stock Market- 6 Tips for Every Beginner Investor

#4 Invest yourself in knowing the stock market

Gather as much knowledge you can while being a college student. As depending upon the major, you would choose in future, you would see that your investment education directly or indirectly contributes to your education. You would find yourself imbibing skills like critical thinking and reasoning, research, analysis, weighing pros and cons, proper application and execution and many more.

One of the ways to gain proper knowledge of the stock market and better handle your investment portfolio is to learn from the best in the same field. You can follow the advice of Warren Buffet or someone you like personally and develop your own methodology too. Try going for the stock market game to have a real-time idea of how it works and whether your strategy is winning or losing there.

#5 Have good company throughout – helps to know how to start investing as a student in India!

One of the best ways to know how to start investing as a student in India is to keep a good company throughout your college life. You would have this big opportunity of meeting up and connecting with a diverse range of people. Why not have a network of peers with whom you can discuss and plan your next step of investing? They might prove to be instrumental in shaping you as a stock market investor.

Get on constructive debates, in-detail planning, research and analysis and discussion for investing in the stock market with the close-knit group of your college-going peers.

Bottom Line!

It indeed is a daunting task to know how to start investing as a student in India. And then to juggle your academics, extra-curricular activities alongside investing full time. But follow the above 5 points, and ask yourself the purpose of turning to be a stock market investor, your sense of commitment to learning about the same, having the right psychology and realistic investing plan along with a close group of college peers as stock investors, might help you drive to long-term success as a student at stock market investing!

 

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