Let me tell you a secret – some of India’s most successful investors started when they were students just like you. I remember my college days when I first began investing with just ₹500 from my monthly pocket money. Today, that small start has grown into something meaningful, and I want to show you how you can do the same.
Investing as a student in India is not only possible but incredibly smart. You don’t need thousands of rupees to begin – with options like mutual fund SIPs starting at ₹100, digital gold at ₹1, or even single shares of good companies, anyone can start. The real magic happens when you begin early and stay consistent. That ₹500 you might spend on pizza deliveries every month could actually be working hard to build your future wealth instead.
Why Every Indian Student Should Start Investing Today
When I gave my first investing workshop at Delhi University, most students thought they needed to wait until they got a job. That’s when I showed them how ₹1,000 invested monthly at 12% return becomes ₹23 lakh in 20 years – but if you start just 5 years later, you’d only get ₹12 lakh. That difference of ₹11 lakh is what we call the “cost of waiting”.
Beyond the numbers, investing teaches you real-life skills:
- How to research companies (useful for job interviews too)
- The discipline to save before spending
- Understanding how the economy actually works
My friend Priya started with ₹200/month in a mutual fund during her B.Com. By graduation, she had ₹15,000 plus valuable knowledge that helped her land a bank job.
How Much Do You Really Need to Start?
Let’s bust the biggest myth – you don’t need thousands to begin. Here’s what you can do with small amounts:
| Investment Option | Minimum Amount | Best For | Risk Level |
|---|---|---|---|
| Mutual Fund SIP | ₹100 | Long-term growth | Medium |
| Digital Gold | ₹1 | Safe savings | Low |
| PPF | ₹500 | Tax-free returns | Very Low |
| Stocks | ₹10/share | Learning markets | High |
| Recurring Deposit | ₹100/month | Short-term goals | None |
I’ve seen students start with as little as ₹50/week transferred automatically from their Paytm wallet to a mutual fund. The amount matters less than the habit.
Best Ways to Invest as Student in India
1. SIPs – The Smart Student’s Choice
When Rohan, an engineering student from Pune, asked me where to begin, I suggested a small-cap fund SIP of ₹500/month. Three years later, his ₹18,000 investment grew to ₹27,000 despite market ups and downs.
SIPs work because:
- You can start small (even ₹100)
- Automate payments so you never forget
- Benefit from rupee cost averaging
2. Digital Gold – Your Grandmother Was Right
Gold isn’t just for weddings – it’s a safe investment that grows over time. Apps like Paytm Gold let you buy for as low as ₹1. My cousin started buying ₹50 worth every week during her BA – now she has enough for a nice graduation gift to herself.
3. PPF – The Government Guaranteed Option
While the 15-year lock-in seems long, it’s perfect for goals like MBA fees or a startup fund. The current 7.1% interest is tax-free – better than any savings account.
4. Stocks – For The Curious Learner
Start with “one share strategy” – buy just 1 share of strong companies like TCS or HUL to learn how markets work. I bought my first Infosys share at ₹800 – watching it grow (and sometimes fall) taught me more than any finance textbook.
Government Schemes You Should Know About
While there aren’t student-specific schemes, these are great options:
- Sukanya Samriddhi Yojana (for female students) – 8% interest
- Post Office Monthly Income Scheme – 6.6% returns, minimum ₹1,000
- National Savings Certificate – Safe, 6.8% interest
A scholarship student I know uses the Post Office scheme to safely grow his stipend money.
How to Start Investing as a Student in India
Find Your Why
- Is it for a new laptop? Higher studies? Just learning?
- My first goal was saving for a certification course
Track Your Money
- Use apps like MoneyView to see where your pocket money goes
- Even saving ₹20/day = ₹600/month
Pick Your Battle
- Safe option: PPF or FD
- Growth option: Equity SIP
- Learning option: 1-2 stocks
Automate It
- Set up auto-debit so you invest before spending
Keep Learning
- Follow SEBI’s investor education website
- Read books like “Let’s Talk Money” by Monika Halan
FAQs About How to Start Investing as a Student in India?
Can I invest 100 RS per month?
Yes, you can invest just ₹100 per month! Start with mutual fund SIPs (like index funds), digital gold platforms (Paytm Gold/SafeGold), or post office recurring deposits. Even small amounts grow significantly over time through compounding – your ₹100/month could become ₹25,000+ in 10 years at 12% returns. The key is starting early and staying consistent.
Which investment is best for students?
For students, the best investment options are SIPs in index funds (start with ₹500/month), PPF (safe, tax-free returns), and digital gold (flexible, inflation-proof). These allow small, regular investments while balancing growth and safety. The key is starting early, staying consistent, and learning as you grow your money. Avoid risky bets—focus on long-term wealth building.
How to start trading in India as a student?
To start trading in India as a student:
Open a Demat account using apps like Groww or Zerodha (requires PAN and Aadhaar).
Start small with ₹500-1,000 and focus on blue-chip stocks (e.g., Reliance, TCS) to learn.
Use paper trading apps (like TradingView) to practice risk-free before using real money.
Learn first—watch SEBI’s investor education videos and track markets via Moneycontrol/ET Markets.
Is SIP safe or not?
SIPs are relatively safe for long-term goals (5+ years) as they average out market risks through regular investing. While not fixed-return like FDs, equity SIPs have historically delivered 10-12% returns over time. Choose established funds with 5+ year track records for stability.
Can I start trading with 100 rupees?
Yes, you can start trading with just ₹100! Here’s how:
Fractional Shares & ETFs: Use platforms like Groww or Zerodha to buy small fractions of stocks/ETFs (e.g., ₹100 worth of Nifty 50 ETF).
Low-Cost Options: Some brokers offer zero-commission trades for micro-investments.
Caution: ₹100 is enough to learn, but profits will be tiny—focus on education, not earnings.
Should I invest if I am a student?
Yes, students should invest—even small amounts grow big over time! Start with ₹500/month in SIPs (index funds) or PPF for safe, long-term growth. Early investing builds discipline and compounds wealth—your future self will thank you!
Conclusion
Investing as student in India isn’t about getting rich quick – it’s about building habits that will serve you for life. The ₹500 you invest today could be funding your first business, your dream higher education, or even an early retirement.
Remember:
- Start with whatever you can
- Stay consistent
- Keep learning
Your biggest advantage isn’t money – it’s time. Use it wisely. As I tell all young investors: “The best time to plant a money tree was yesterday. The second best time is today.”
