Due to stock market popularity and the availability of easy trading apps, college-going students and youngsters are attracted to the stock market. The major reason behind the attraction to the stock market is the market returns. Youngsters are smart enough to learn new applications quickly and apply them with ease. With the advancement in knowledge about investment, college students can easily start investing with small funds. A significant point for college students about their eligibility to invest in the stock market.
Yes, college students can invest their funds in the stock market and earn like other investors. Newcomers should know the basics of investing in the stock market and other related elements that will assist in the investment.
What is a trading account?
A trading account is an online trading platform that keeps the online record of each purchased security. Investors can open a free trading account or a low-cost trading account with any broker. He or she can select the best trading account by comparing the services of different brokers.
Brokers have their online trading apps through which the trading account can work. Now there are different documents that are mandatory to open a trading account.
- Identity proof: PAN card, Aadhar card, voter card, Licence, passport, etc.
- Income proof: Bank statement, ITR receipt, Annual income statement ( In case, college students have zero income from an official source, then a bank statement is sufficient).
- Bank proof: Bank passbook, account number
- Address: Ration card, Addar card
- Valid passport size photo
With these documents, young investors can start their journey to the stock market. The process of the investment is as follows:
What are the options available in the stock available for investment?
These investors can start investing through different funds like mutual funds schemes. Apart from mutual funds, direct stocks, debentures, and money market instruments, government securities are also available to invest in. The investment can be initiated through trading or demat accounts. Different online trading apps provide free and low-cost demat accounts for investment.
If you have knowledge of basic concepts like what is a trading account and how can a college student open for investment in the stock market, then it simplest the practical trading in the stock market.
Investment process in the stock market:
In case, college students have knowledge about market techniques, then online trading apps made it possible to buy and sell shares and other securities with proper fundamental and technical analysis.
- To invest the funds, investors are first required to add money to the wallet of a trading account. An investor can add funds with the help of any bank account-linked payment portal.
- After getting funds in the trading account, investors can buy the securities. All trading apps show all listed securities, in which some securities can be selected by comparing the returns, risk, price, and other factors.
- After selecting the security, investors can buy it by clicking on the option “buy”. With a click on an option, Broker diabetes the amount from a wallet and initiates a transaction.
- After 2 days, purchased securities are added to the trading account.
- After getting good returns, if an investor wants to sell the security, then the “sell” option allows the selling of the security.
With the above steps, a college-going student and other youngster investors can buy and sell stocks to earn some returns.
As an investor, college students can save some amount for future education and long-term financial planning. The stock market is a better way to save funds for college students. With proper identification of the stocks that can be beneficial for the investment, these youngsters can earn a high return on the invested amount.