8 Best Investment Options for Students in India

We are a strong advocate of investments, and we strongly believe that everyone should be involved in investment from the very start. Parents can build this attitude in children at the very start. We have also encountered many students who have a habit of saving their money in their bank accounts or cash. Many students also reached out to us to explore investment options, and if you are also looking for some, you are on the right page. Today, we will help you explore the investment options for Students in India.

Usually, we will categorize the investments as per the risk buckets, and then we will offer you recommendations based on your risk appetite. However, we would do it a little differently this time. We won’t be recommending the investment option based on the risk profile but on the investment’s goals and purpose. These things are very important to understand since the option can vary as per the goal of your investment.

Moreover, we feel that students are energetic and have some time to spare for the analysis. In addition, this is the time when you can take risks. So, let us now explore the investment options for Students in India in 2023.

List of Best Investment Options for Students

1. Cryptocurrency

Cryptocurrency is certainly a good option. Even in the past, it has yielded huge returns for investors. You can buy and hold the cryptocurrency, or you can invest long-term as well. Go through the government’s tax mandate and other such things before taking a final call about cryptocurrency. There are many applications available on App Store and Google PlayStore that can help you start your investment journey in cryptocurrency. These are very high-risk investments because of their volatility, so you must take a call accordingly. If there is a portion of the fund that you are willing to invest in a high-risk portfolio, cryptocurrency is one such option. You can invest in cryptocurrency with as little as Rs 50.

2. Fixed Deposits

We are sure that many of you would be saving for your higher education. This can be for the college fee, hostel fee or just living expenses. In such a case, we would only recommend you a save and liquid option. What is safer than investing in a fixed deposit? So, if you are looking for an investment that will yield basic returns, then a fixed deposit is a good option. Many students are also doing part-time jobs; if you are among them, you must use fixed deposits for investments. You can invest in a fixed deposit with as little as RS 5,000.

3. Mutual Funds

The best part about mutual funds is that you can choose among the options available. You can choose to go for the liquid fund, or you can choose to go for a balanced fund. You can even go ahead and invest in a pure equity-based fund. You can park that lump sum amount in mutual funds if you get a big financial gift. Or, if you are saving a bit from your monthly allowance, you can opt for mutual funds too. You can invest in mutual funds with as little as Rs 500.

4. P2P Lending

P2P lending is similar to fixed deposit, but instead of lending money to the bank, you are lending the money to the people. The risk profile of P2P lending is certainly higher than fixed deposits. Most platforms will provide you insurance for your capital, so the money stays safe. However, the risk still exists. The return of P2P lending is higher than that of fixed deposits because of the higher risk. In addition, you can start your journey with P2P lending with a minimum of Rs 10,000.

5. PPF

If you are already thinking from a long-term perspective, you can also opt for PPF. The lock-in period for PPF is 15 years, so you should be very cautious about what you invest in PPF. The minimum needed investment for PPF is Rs 500 per year, and you can go to maximum levels of Rs 1.5 Lakh per annum. The returns on PPF are really good, which is why people prefer PPF over anything else.

6. Recurring Deposits

We are sure that as a student, you would get pocket money from your family. If that is the case, you can save some of your pocket money for your future. You can use the benefits of recurring deposits here. Recurring deposits can be opened for a minimum of Rs 500 and a minimum tenure of 6 months. If you think you can save Rs 500 every month, this would be a perfect option for you. At the end of 6 months, you will have Rs 3000 plus the interest.

7. Stock Market

If you are a student of any financial course like BBA or B.Com, then the stock market makes perfect sense for you. You can open your account with a discount broker and start investing in the stock market. You will be able to take benefits of the same. There is no such minimum investment in the stock market; this way, you will also get to play around a little. With these investments, you will learn a lot, so we encourage students to go for stock markets. You can do the fundamental and technical analysis before you invest in any stock.

8. Sovereign Gold Bonds

As a student, if you are interested in precious metals, you can also opt for sovereign gold bonds. Here, the minimum investment is 1 gram of gold, and the maximum is 4 Kg per year. The bonds have a maturity period of 8 years, but you can again redeem them at exchange after the completion of 5 years. You get the benefits of appreciating the price of the gold, and you get 2.5% interest on the issue price semi-annually.

Final Take

These are some of the good investment options for students, and it is certainly worth taking risks at your age. Before you start investing, you must understand the purpose of your investment, and that will give you an idea about the assets that you should buy. We have also come across students who prefer investing the gifts that they have received in the form of money from their families. This is a highly appreciated habit, and it will yield results when you need funds in future. Please note that all the investment options are shared based on our opinion. You must take decisions based on your discretion and analysis.