What are the best investment options for youngsters?

Contrary to popular belief that investment options are only open to the working class, youngsters, especially college-goers, can be the best investors because they have several advantages. While most youngsters in India shy away from investing, considering that they have no other financial burden, investment is a handy option to get richer at a later stage.
Apart from practical knowledge, it is a good idea for students to start investing as it would help them manage their finances better in the future. To assist youngsters who aspire to invest but lack the knowledge, here is a set of tips to help them make good use of their pocket money and stipends.

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

• Go for low-risk investment options: Young aspiring investors should note that while it is an exciting prospect to invest in stocks and mutual funds, low-risk options should be considered so they don’t end up losing more money. (P.S. The stock market is full of risks and uncertainties, so it would be advisable if you could take guidance from a broker or a senior family member while going for an investment plan.) As a young investor, the first thing that you should consider is the fact that the stock market involves risk, but those can be tackled if the risk tolerance level is balanced. A planned investment can get you a decent return. It is advisable that youngsters go for long-term investments.

• Calculate your risks and margins in advance (estimate): Calculation is the key to success when it comes to investment. For the daring lot, who are willing to take an extra step to earn more, calculations are really important. While you should be ready to tackle financial hits, choose multiple investment options to balance the equation.

• SIPs in mutual funds: This is one of the best investment plans for youngsters, as it offers the lowest risk and the biggest return. A systematic investment plan is one of the smartest ways to eliminate loss. It may be noted that SIPs will allow youngsters to deposit a pre-determined amount – on a weekly, quarterly or monthly basis) and is recommended by most tax experts for early investors. However, this kind of investment is mostly for individuals looking at long-term investment plans.

‚Ä¢ Never forget background research: The most important guideline that college-goers and young investors need to follow is background research; considering that there are reasonable risks involved in managing investments, one must do his/her own background research before diving in to invest. For starters, youngsters should check out how the company, which they plan to invest in, has performed on a yearly and quarterly basis. While past performances can‚Äôt dictate future results completely, it does give an indication of the firm’s future curve. At a later stage, you could even check market trends, which are provided by almost all top business news channels.

• Never get carried away: Last but not least, one should never get carried away after a brief success. The stock market is a vulnerable yet addictive place; you have to be careful as an investor as to know when to pull out of the market and when to advance. Often brokers would request you to invest in another scheme, but you have to remember that the final authority lies with you.

Personally, I recommend HDFC securities as I myself started investing at the age of 18 and HDFC securities really helped me go about it at that age. I assure you perfect guidance and smooth working especially when it comes to youngsters as they are very good at advising and explaining the process of investing in beginners. To start investing early for better returns click on the link given below:https://www.hdfcsec.com/mutual-fund-investment-online?id=lgn

Equity Mutual Funds: Selecting and maintaining a portfolio of stocks might not be your cup of tea. In such cases, you can save yourself the trouble of selecting stocks and instead pick equity mutual funds designed to match your investment goals. With the regulator’s new categorization norms, picking the right mutual fund for your investment goals is much easier. A well-managed fund can generate an average return of over 14 percent over the long term. Select funds that have a proven track record of performance, across market cycles

Investing mantras for youngsters

Understand basics of investing process
One needs to get acquainted with concepts like time value of money, various investing avenues and the relationship between risks and returns.

Take stock of your career
As a young person with plenty of working life ahead, one has to take a stock of career goals

Think about future expenses
lease be aware that your future expenses would be on the rise as time goes by. This is because the time value of money would be on a decline because of inflation. In an emerging economy like India, moderate inflation would always ensure that prices rise across all spectrums over a period of time. Investing in stock market or mutual funds will help you save money to protect you from the inflation.

Find a good investment advisor
Rather than falling prey to share market tips from friends or relatives or various services provided providing stock market tips without sound backing up of research, find a good investment advisor who can help you draw a well-rounded financial plan best suited for you.

Hi,

My opinion is invest in gold bonds and commodity like crude oil. Because the gold price rising 10 times compare with past 15 years and few weeks back the terrorist attacked oil refine system from Saudi Arabia. It will directly affect the international oil price and also share market.