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Why is Learning Trading and Investment The Best for College Students?
June 28, 2021
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Today’s generation is quite intellectual and aware of new technologies and how to earn money through investment. But due to financial diversification, many people find difficulty in understanding where they need to invest. Moreover, it’s found that young professionals have a problem filling the taxes, practicing trading, understanding the share market, and funding.
It’s a significant problem faced by many Indians nowadays, which is primarily due to not providing enough knowledge to students about these potential aspects. Even though it has been taught to everyone that investment in stocks is subject to market risk, you might lose your shares and money.
Most Indian households choose to save their money, while less than 10% invest in the equity market, such as stocks or mutual funds. In fact, post office savings, gold, and real estate are chiefly preferred instead of investment and stock trading. The best way is to gain knowledge through learning about share trading. Thus these money-saving tactics are the main reason why the youth face trouble in saving.
They often follow their elders’ path by avoiding the risky route and prefer the saving module instead of investing in the stock. But, it’s a better time for 12th students to spend some of their time learning trading and other types of financial investment, as the exams had been delayed.
According to several surveys, 72% of people have no idea how to achieve financial freedom. In contrast, the other 56% of them lack the knowledge of managing their personal finances. Above all, 76% of the population believe that education is the primary source of financial freedom.
Although there’s no problem in saving your money on your bank deposits, there is a possible risk of depreciation in the amount due to inflation over time. But early trading in the investment, stock market, teaching them about the fundamental concepts of share market, compounding, portfolio diversification, and more can help students become financially stable and live a wealthy lifestyle.
Why Should Students Learn About The Equity Market?
It’s found out that most Indian parents don’t feel safe investing in the equity market and even don’t allow their children to learn to trade. Though the college students are young and dynamic and with quality learning and compound interest, they can earn more profits than the adults who start trading in their 30s. Here are the following reasons why college students should begin investing during their learning period.
For instance, you need INR 7419.46 as the principal amount when you start investing in affluence 500 companies. So in the first year, you will gain a total of INR 8161.60, followed by INR 8977.76 and INR 9868.11 in a couple of years. However, at the end of every year, there’s a possibility that you will earn only 10% of the profit.
Thus compounding works quite well for college students as it offers some more time for them to grow money. So investing early allows them to take small and calculated risks without even fearing affecting their family’s financial condition and their livelihoods. Further, it offers an insight into investment risks and stock assessment, which helps them make smart choices by observing their rise and fall over the period.
How to Introduce The Stock Market to The Students?
Here are some of the tips which can help students to learn about the stock market and how parents and authorities can introduce stock investing and trading to college students.
Learning The Difference Between Investing and Savings
Well, the students must learn that saving is a great way to secure your money. However, while investing a little in the equity market, they can earn more money and learn tricks to increase their wealth. Even the tiny increments help them to grow their lifestyle financially.
Importance of Financial Portfolio Diversity
Investing is not only about putting everything in one basket, but you should learn how to invest in various fields. Thus, introducing investment and trading can positively twist the potential monetary value and allow them to gain huge profit if they invest correctly.
Know Basic Concepts
As mentioned above, investing helps you to grow a diverse financial portfolio. But to achieve this the students need to learn the basic concepts to build their varied financial portfolio. Some of the basic concepts include stocks, BSE, mutual funds, NSE, equity, and others. So after learning the basic concepts, the students are empowered to make the right choices and options.
Improve Stock Analytical Skills
As far as discussed, the stock market is the meld of both institution and analysis. So teaching students about the basics of share prices, fall, rise, and their influence on their investment allows them to start trading on a better note.
Gamification is another engaging way to excite the young minds’ interest in investment and trading. With the help of a mock version of Stock Trading, the students learn how to invest, witness firsthand, and even experiment with selling and stock purchase without exposure to the market. Even without having any risk or fear of losing money.
In short, by staring at a young age, it’s quite possible to change the young generation’s perspective on money. It allows them to live a debt-free life and become financially independent with a slight possibility to improve the country’s economic scenario.
How Students Can Learn Stock Trading?
The best way to get started with stock trading training is to join a stock market course. There are different types of courses from beginners to advanced level programs. Students can choose on the basis of their requirements and can start learning. IFMC is a certified institute for stock market education. They offer both classroom and online classes in the share market. They have short-term courses for both investors and traders. You can join IFMC courses to start your investment journey in the stock market. The courses are affordable and simple for the common man.