Most college students remain concerned about studying for exams, finding a flexible part-time job and lining up some fun extracurricular activities. But there’s always a circle of few students stuck off in a corner of the library, trying to pick the next great stock. Investing isn’t a foolproof ladder to wealth, but with some research, you can start out strong in the market. Here are 7 advantages which college have over middle aged who are ready to tackle Dalal Street.
1) Less starting capital : The students just need a basic amount of money to able to start investing in the stock market. They are obviously amateurs and thus, it is always better to start off at a minimum capital risk. Especially those looking to get financially independent, this could be a fruitful opportunity for them.
2) You can probably ride out stock market drops : It makes sense to own more stocks, but if market drops still make you nervous, remember this: It may be painful for a time, but if the stock market behaves as it has over long periods, you should be able to ride it out. This is why stocks should be owned for the long term. It has taken many years, even multiple decades, to recover from the worst historical declines in the stock market. But, overall, stocks still offer the most growth potential, by far—as long as you can stay the course over the long term.
3) High rate of return on long term investments : Students can buy stocks for a longer term because of availability of time and less or no pressure of earning. Making a long term investment is a form of saving, and unlike the conventional means of saving money in bank, they can get higher quicker returns on those savings. They must be patient enough to invest in right stocks for the right time in order to get the maximum possible returns. There are many tech savvy tools and mobile applications available openly in the market these days and who better these new age students to deploy them to their advantage.
4) Long term tax free dividends : The returns that one can make out of a fixed deposit and other bank schemes are much lesser than those obtained from investing in the stock market. And also, these investments give you an income tax relief, in case you are working part time while studying, which is a very common scenario these days.
5) Pocket money Increment : While the initial investment would be made by the pocket money they have saved with them, it is only obvious that the returns that are obtained from investing in the stock market may add to the pocket money of students. They just need to be careful as to where and when to invest their little pocket money and make it bigger through the stock market.
6) Less time intensive as compared to internships, part time work : Near to the completion of any degree or diploma, every student tends to do internships or/and live projects to earn some extra cash while still studying. The process of stock market investment is quicker and gives more returns than the college initiated procedures. Also in colleges where the internships are mandatory, students will still have surplus time to manage their stocks.
7) Thrill in investing and having a stock-portfolio : Every student looks for some fun and excitement in life, and to do something that is not very common, gives them a thrill. Stock market investing can give you thrills and fun all the time. You just need to be well prepared and informed about the current market situation and save yourself from hasty decisions of investing into the stocks.
Investing in stocks is a science as well as an art and , ‘Experience is also the best teacher’. So to get good returns on your investment it would be a good idea to start early and become a ‘stock-bhai’. It is the best solution for students to earn a quick honest buck