Many students think investing is only for adults or people with a lot of money. The reality is, students can begin investing too. Even by saving just ₹100 or ₹500 each month, your money can grow gradually over time. This blog will explain how can a student start investing, why it is important, and what simple steps they can take.
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📈 Why Should Students Invest Early?
Starting early gives your money more time to grow. This is called the power of compounding.
🔢 Example:
- If you invest ₹500 per month at 12% annual return, in 10 years:
- You will invest: ₹500 × 12 × 10 = ₹60,000
- Your total return: around ₹1,15,000
- Your profit: ₹55,000 without doing any work!
So imagine if you keep investing for 20 or 30 years — you could become a crorepati!
💡 Steps: How Can a Student Start Investing?
1. Start with Savings
Before investing, save a small amount from your pocket money, part-time job, or gifts.
Even ₹100–₹500 per month is a great start.
Tip: Open a Zero-balance savings account in a bank.
2. Set a Goal
Decide why you want to invest:
- For a new phone or laptop
- For education
- To build wealth for the future
A clear goal helps you stay focused.
3. Understand the Investment Options
Here are some easy and low-risk investment options for students:
| Investment Option | Minimum Amount | Risk | Returns |
| Savings Account | ₹0 | Very Low | 2.5–4% |
| Fixed Deposit (FD) | ₹1,000 | Low | 5–7% |
| Recurring Deposit | ₹100/month | Low | 6–7% |
| Mutual Fund SIP | ₹100/month | Medium | 10–12% |
| Stock Market | ₹100–500 | High | 12–15% or more |
| Digital Gold | ₹1 | Medium | 8–10% |
| Public Provident Fund (PPF) | ₹500/year | Very Low | 7–8% |
For students, Mutual Funds (SIP) and Recurring Deposits are easy to start and safe to use.
4. Choose a Platform or App
Some apps/platforms you can use:
- Groww
- Zerodha
- Upstox
- Paytm Money
- ET Money
You will need your PAN card, Aadhaar, and a bank account to open an account.
5. Start Small – Use SIP (Systematic Investment Plan)
SIP allows you to invest small amounts regularly.
🔢 Example Calculation:
- You invest ₹500/month in a mutual fund for 5 years
- Expected return: 12%
- You invest: ₹30,000
- Final amount: approx. ₹40,000+
- Profit: ₹10,000+
SIP is great because it builds habit + wealth together.
6. Learn and Track Your Investments
Use websites and YouTube channels to learn:
- Moneycontrol
- Investopedia
- CA Rachana Ranade
- Zerodha Varsity
Check your app every month to see how your money is growing.
💰 Simple Rules Students Should Follow While Investing
- Start early, even with small money
- Invest regularly (SIP is best)
- Avoid risky stocks in the beginning
- Don’t invest borrowed money
- Stay invested for long-term growth
✅ How Should I Invest ₹1,000 Per Month?
🪙 Recommended Split (Simple and Balanced)
| Investment Option | Amount | Why? |
| Mutual Fund SIP | ₹500 | For long-term high returns (10–12%) |
| Recurring Deposit (RD) | ₹300 | For medium-term savings with safety |
| Digital Gold or PPF | ₹200 | For long-term security |
🔢 Calculated Example for 5 Years
Let’s say you follow the plan for 5 years (60 months).
1. ₹500/month in Mutual Fund SIP (at 12% annual return)
- Total Investment = ₹500 × 60 = ₹30,000
- Expected Final Amount ≈ ₹42,000
- Profit = ₹12,000
2. ₹300/month in Recurring Deposit (at 6.5% annual interest)
- Total Investment = ₹300 × 60 = ₹18,000
- Final Amount ≈ ₹20,800
- Profit = ₹2,800
3. ₹200/month in Digital Gold or PPF (at 7% annual return)
- Total Investment = ₹200 × 60 = ₹12,000
- Final Amount ≈ ₹14,100
- Profit = ₹2,100
📊 Total Investment and Returns
| Total Invested | ₹60,000 |
| Total Value After 5 Years | ₹76,900 |
| Total Profit | ₹16,900 |
So by investing just ₹1,000/month, you could earn nearly ₹17,000 extra in just 5 years — without doing anything except staying consistent.
📝 Bonus Tips
- If you want low risk, increase RD or PPF portion.
- If you want high return, increase Mutual Fund SIP.
- Use trusted apps like Groww, Paytm Money, Upstox, or ET Money.
🎓 Best Investment Plan for Students (Monthly Budget Example)
| Budget | Saving | Investing | Total |
| ₹1000/month | ₹500 (keep in bank) | ₹500 (SIP or RD) | ₹1000 |
| ₹2000/month | ₹1000 (bank or PPF) | ₹1000 (SIP or stocks) | ₹2000 |
| ₹3000/month | ₹1000 (bank) + ₹500 (PPF) | ₹1500 (Mutual Funds) | ₹3000 |
🚀 Benefits of Investing as a Student
- Build good money habits
- Learn financial discipline
- Grow your wealth slowly
- Become financially independent early
- Understand the value of money
📝 Conclusion
Investing is not only for adults. As a student, you can easily start investing with just ₹100–₹500 per month. Use SIPs, savings accounts, and safe apps to grow your money slowly. If you begin early, you can earn more in the future. Don’t wait for a perfect moment—start now and allow your money to grow over time!