Best Mutual Fund Schemes for Students 2022. Should you invest as students?

Best Mutual Fund Schemes for Students ; should you invest as students? 

There are a number of misconceptions about investing in mutual funds. Some believe that only wealthy people can make investments in mutual funds, while others believe that only the elderly can make investments.

Subsequently, a huge portion of the population avoids making investments in mutual funds because they do not have sufficient knowledge. There is no age limit for starting an investment. It isn’t only for the rich, though. Anyone, including college students who usually do not have a regular source of income, can make investments in mutual funds.

Many people may find mutual funds complicated or intimidating. This article explains mutual funds at a fundamental level. A mutual fund is nothing more than a pool of money put together by a big group of people called investors.

A professional fund manager makes all of the decisions for this fund.

In recent years, investing in mutual funds has grown easier than it was two decades ago. Mutual fund investments may be made using a paperless approach online, and the minimum amount of money necessary for investing in mutual funds is Rs. 100.

Now that we live in a culture where our financial goals and desires are much clearer than they were in our forefathers’ time, it is much easier to establish goals and attain them over time.

It’s a trust that pools money from a group of people who wish to put their money into the same item. With the proceeds, stocks, bonds, money market instruments, and other assets are purchased with the proceeds. Each member receives units that reflect a percentage of the fund’s assets.

The income/gains from this collective investment are dispersed equitably among the members once certain expenses are avoided by calculating a scheme’s “Net Asset Value or NAV.”

If you’re a student, mutual funds might assist you in getting a good start on your long-term investment plan. Investing in mutual funds has a number of advantages. You might, for example, put money down to pay for your own further education, or you could spend it on a two-wheeler or a trip with your pals.

Mutual funds are intended to help you grow the value of your possessions. Long-term gains are likely to delight you, depending on how much money you invest.

The nicest thing about investing in mutual funds as a student is that you don’t have to work.

Systematic Investment Plans allow you to put a portion of your monthly allowance or pocket money in mutual funds.

As a student, there are several advantages to investing in mutual funds.

As a student, the following are the main benefits of investing in mutual funds:

Meet Your Financial Objectives

Investing in mutual funds at a young age will give you a leg up if you have long-term financial goals. Investing in mutual funds requires relatively little effort, and your investments will pay off over time, allowing you to achieve your objectives. You’ll learn a lot about investing when you first start working, which may help you generate a huge amount of wealth when you get older.

Manage Time

Time is one of a child’s most significant assets. It is also the most essential component when it comes to investing. In essence, your investment will grow at a compounding rate over time, meaning that the profit generated by your investment will generate further revenue. If you practice discipline now, you will be more disciplined later in life. You will be more disciplined in your later years if you start investing sooner.

Investing in a Healthy Way

It takes a lot of effort to develop good investment habits. Budgeting your expenses, putting money aside for investment, and sticking to a consistent spending pattern all require effort. Developing these behaviors in your latter years, on the other hand, might be quite beneficial.

If you save Rs. 500 each month while in college, you’ll have amassed more than Rs. 30,000 by the time you finish in 3–4 years (assuming your investment grows at 15 percent per annum). As a result, developing these behaviors at an early age is critical for a solid financial future.

Is It Really Beneficial to Invest While You’re a Student?

The power of compounding should not be underestimated. If you wait too long, you’re more likely to miss out. Let’s look at an example of a hypothetical situation. You’ll be ahead of the game if you start investing in mutual funds from the first month of college, even if it’s only Rs. 100 a week, especially if you’re a student with little financial resources.

Over the course of a year, this figure comes up to Rs. 5,200, or Rs. 433 per month. So far, you’ve only managed to save this much. This money will accrue interest, and let’s say your investment yields a 7% annual return.

If you invested Rs. 433 per month for three years (36 months), you would have invested a total of Rs. 15,588 during your college years. By the time you graduate from college, you’ll have Rs. 17,873, and you’ll have made a profit of Rs. 2,285 on a weekly investment of Rs. 100 over three years.

By the time you reach the age of 60 and retire from work, your investment will have increased to Rs. 15,88,669 if you continue to invest the same Rs. 100 every week (assuming the rate of return is 7 percent).

..Investing in mutual funds from a young age is certainly a smart idea, and even if you only have Rs. 100 per week to spare, mutual funds may help you multiply that amount in a few years.

Long-Term Financial Goals and Mutual Funds

If you have long-term goals and will need money in four years or less, the following mutual funds can help you attain them:

Axis Bluechip

The Axis Bluechip Fund is a blue-chip stock mutual fund.

Since its inception on January 1, 2010, the Axis Bluechip Fund has returned 12.99 percent to investors. The fund has a moderate risk profile with an equity exposure of 85%. The strategy focuses on the technical, automotive, and financial industries.

The Axis Bluechip Fund is a well-known student investment strategy because it provides both market exposure and strong annualized returns. The program has a one-year return of 21.50 percent, a three-year return of 17.00 percent, and a five-year return of 21.00 percent.

The SBI Bluechip Fund is a mutual fund managed by SBI.

The SBI Bluechip Fund is a long-term capital growth fund that invests in large-cap equity securities. The fund is actively managed, and diversification contributes to the fund’s capacity to provide long-term gains. Since its inception in January 2006, the SBI Bluechip Fund has returned 11.68 percent to investors.

The fund’s portfolio is mostly made up of companies from the automotive and banking industries, with a few from the oil and gas, pharmaceutical, and other industries have thrown in for good measure. The fund’s portfolio is mostly made up of companies from the automotive and banking industries, with a few from the oil and gas, pharmaceutical, and other industries have thrown in for good measure.

The fund’s portfolio consists primarily of stocks from the automobile and banking sectors, with some stocks from oil and gas, pharmaceutical, and other sectors. The scheme’s risk level is moderately high, and the fund’s portfolio consists primarily of stocks from the automobile and banking sectors, with some stocks from oil and gas, pharmaceutical, and other sectors. The SBI Bluechip Fund invests more than half of its assets in large-cap equity companies.

The scheme’s investments are made in some of the top corporations, which are less volatile than smaller companies, resulting in more steady returns than others. The scheme’s one-year returns are 10.50 percent, its three-year returns are 14.50 percent, and its five-year returns are 23.20 percent.

Mutual Funds to Help You Achieve Your Mid-Term Financial Goals

ICICI Prudential Equity and Debt Fund

(ICICI Prudential Equity and Debt Fund) (ICICI Prudential Equity and Debt Fund)

The ICICI Prudential Equity and Debt Fund’s principal investments are money market and debt securities. Since its inception in November 1999, the plan has returned 14.72 percent. The ICICI Prudential Equity and Debt Fund is a good investment option for students because of its portfolio’s mix of stocks and debt securities.

The program has a one-year return of 11.01 percent, a three-year return of 15.50 percent, and a five-year return of 21.90 percent.

Principal Hybrid Equity Fund

(Principal Hybrid Equity Fund) (Principal Hybrid Equity Fund)

The investment goal of the Principal Hybrid Equity Fund is to generate long-term capital growth by investing in inequities. Since its inception in January 2000, the Principal Hybrid Equity Fund has returned 11.75 percent. The fund has a high-risk profile, yet it is known for its consistent performance and substantial returns.

The Principal Hybrid Stock Fund invests two-thirds of its assets in stock markets, with the banking sector accounting for the major portion of its holdings. This method is ideal for students because of the consistent income it generates. After one year, the strategy returns 14.20 percent, 18.60 percent after three years, and 22.00 percent after five years.

Investing in a Mutual Fund to Achieve Short-Term Financial Goals

For students who want to invest in mutual funds for a short period of time, the Franklin India Low Duration Fund is a great choice. It’s a debt fund that allows users to contribute money for as little as a few weeks. The program has generated returns of 9.63 percent with a low-risk profile since its inception.

The scheme’s assets are split into two-thirds debt instruments and one-third cash. Students will find this program valuable in the near future due to how safe it is to invest in it. The program has a one-year return of 7.60 percent and a three-year return of 7.60 percent.

The scheme’s one-year returns are 7.60 percent, its three-year returns are 9.20 percent, and its five-year returns are 9.80 percent.

Investing in mutual funds is pretty simple. You’ll need to do some studying on the papers before getting started, but you’re ready to go. It is important to keep track of the development after investments.