Top 5 Investment Plans For College Students

There are many challenges that you may face in your college life like leaving your home, making new friends, grasping syllabus, preparing for exams, managing your life on your own. In this stage, you are ought to think of everything from partying to your future career except one thing and that is investing. We know no college student would like to think about investing at this age. But what if we tell you that investing at this age can get you maximum benefits?

Being out there by yourself managing your life is a huge responsibility. It might be difficult to save money at times having expenses like projects, travel, parties. But cutting down on a few expenses that are not required and saving the money at this age can take you long way.Savings and investmentsat this age will help you to manage your finances better and make better use of stipends. Let’s see a few investment plan that will benefit you as students in various ways.

  1. Company Fixed Deposits – The first thing as an Indian you will be advised while investing is ‘fixed deposits’. While fixed deposits always make a safer optionto save and reap steady return on investment, the rate of interest offered may differ based on type of FD you select. The corporate FD schemes do not come under insurance benefits or Reserve Bank of India’s hold. And so they offer a higher rate of interest. If you are looking out for long-term savings and investments and you’re ready to bear the risks then you can opt for the company fixed deposits.
  2. Mutual Funds –The best reason to invest in mutual funds is that they are easy to understand. Mutual funds offer best interest on your funds as compared to other savings and investments like fixed deposits or savings account. You can choose the risk factor based on your risk appetite. You can choose SIP that is systematic investment plan and start with even minimal amount that will reap great returns in near future.
  3. Unit Linked Insurance Plans – ULIPs or the Unit Linked Insurance Plans are a combination plan that offers risk coverage as well as investment avenue to the policyholder. An investor can choose from equity, debt or mix of both the markets to invest his/her funds and reap expected returns on investment. You can invest in stocks, bonds or mutual funds and the fluctuation is taken in accounts by the net asset value (NAV).
  4. Post office monthly income plan – Want maximum returns on your investment? Go for post office monthly income plan. This investment plan comes with minimum risk and is great for retired investors looking for a steady monthly income. The only glitch is that it comes with very low rate of interest.
  5. Stocks– Buying a stock is like buying a small part or share of that company though you don’t get ownership until you own huge share in the company. Stocks are usually volatile to market conditions and thus it has more risks but also comes with better gains. The returns you get majorly depends on how well the company perform.