Investing in shares and bonds used to be something that only working professionals could do. Today, that dynamic has shifted completely. Retailer investors have gone up significantly in recent years due to government support and the emergence of online stockbrokers like Zerodha and Groww. This blog will answer the question that every enthusiastic student investor wants to know – Can a student invest in stock market?
With investing turning out to be as easy as installing an application on your phone, everyone wants in on the action to become an investor. What used to be an investment opportunity only for people who were salaried or had a hefty cash flow, was limited to those who had both or either one.
This was an entry barrier to the stock market that almost every keen investor used to face in the past. Now, all you need is a few key documents and a little capital to get started. But, can a student invest in the stock market? Read ahead to find out the answer to the question!
What is the Minimum Amount Needed to Invest in the Stock Market?
There is no such thing as a minimum amount in terms of buying shares and investing, specifically when you’re investing yourself. It completely depends on the company share price or mutual fund you pick yourself.
It also varies depending upon how much of your monthly budget you can set aside for investing alone, besides expenses and savings.
The Indian Stock market has primarily two stock exchanges – The BSE and NSE. Currently, there are over 7,000 companies listed on the exchanges and you can invest in all of them. The share prices vary from Company A to Company Z, from as little as ₹1 per share all the way to ₹87,000.
Besides the share price, you as an investor will have to bear the cost of the brokerage (buy or sell orders), which varies from broker to broker.
Qualifications To Become An Investor
Now unlike traditional career options which require you to have a qualification, trading doesn’t have such restrictions. For example, a basic job requires that you complete some certification with a Bachelor’s degree, and to an extent a Master’s degree.
But, while it is not mandatory to have qualifications to invest. You do need financial knowledge and for that Fingrad is providing great deals on courses for investing as well as trading so take a peek at the Courses on the website today. All it takes is one small step towards financial independence.
To become an investor you need these four things
- Demat Account
- PAN Card
- ID Card with address proof
- Bank Account
Can A Student Invest In Stock Market?
When we were in college, even we wondered – Can a student invest in stock market?
Financial knowledge wasn’t as easily accessible as it is today, but online brokers have changed the landscape for investing and trading.
If you’re 18 and above and have the above four items, then you can start investing. A PAN card is issued to only those who are 18 and above, while an ID card such as Aadhar can be opened by minors as well.
As stated above, there is no cap on the minimum amount needed to invest.
Before investing your money into company stock, firstly, invest in your knowledge. It doesn’t take much effort to put money into a stock without looking into it first. Certain factors like fundamental analysis, company historical performance, business, industry, etc can go a long way in helping you learn to invest better for the future.
If you are comfortable with passive investing, then there are other options such as ETFs and mutual funds.
If you’re planning to invest as a student, then our advice to you is to first invest in knowledge, especially if you lack the time and resources to actually put money into assets like stocks. Hope this answered the question – Can a Student Invest In Stock Market?