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Female, 20, Others Siliguri, West Bengal
I am a 2nd year college student. I want to start investing small amounts. How do I start?
7 answers/comments
07:19:31 AM, 26th February, 2019
  • Sam GhoshFounder and SEBI Regd. Investment Adviser at Wisejay Private LimitedBangalore, Karnataka
    Profile

    First of all, congratulation on start thinking about investing at such a young age and talking about it. Trust me that many elderly people in India are hesitant of investing and especially talking about investing. So, you are out of that mental block and I appreciate that.


    As you are older than 18, you are not a minor and can execute own investments without any legal guardian. Now, before execution, you should spend some time planning and learn about different investment options. I am guessing learning about investments is your primary goal right now. Below, I will touch upon some aspects.



    RISK TOLERANCE

    You are young but I am guessing not yet employed and you do not have any dependents. So, your risk tolerance is moderate to high. I am not sure about your goals for investing – do you want to invest to gain experiment and learn or you have some goals? If you are investing pocket money to learn then you can take some higher risk.


    GOALS

    There are numerous kinds of investment options. Without setting goals you might get confused. So, set goals in terms of how much you want to invest in one financial year and how much you want to have by the time you graduate.


    MODE OF INVESTING

    Are you interested in mutual funds or want to invest in direct equities? As you are just starting out I would suggest start by investing in direct mutual funds. You do not need a demat account but you will need the KYC documents.

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  • Female, 20, OthersSiliguri, West Bengal

    Thank you for you answer, Sam.

    I want start MBA after graduation. Instead to taking a huge loan I want to save now and finance my education. I am not interested in experimenting and losing money. Just want to have a good amount so that I do not have to take a huge loan.

    Also, what are the KYC documents and how do I get them ?

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  • Sam GhoshFounder and SEBI Regd. Investment Adviser at Wisejay Private LimitedBangalore, Karnataka
    Profile

    Excellent thinking but you are already a second-year student. Are you planning to take some time off and prepare for MBA applications?

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  • Female, 20, OthersSiliguri, West Bengal

    I am in a 3 year program and yes, I want to take one or two year for MBA preparation.

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  • Sam GhoshFounder and SEBI Regd. Investment Adviser at Wisejay Private LimitedBangalore, Karnataka
    Profile

    So, you re looking at 2-3 years investment horizon for the amounts you will invest now. You can start with some large-cap open-ended schemes this year. As you have a defined goal (you want to finance your MBA), I would not recommend investing in mid-cap or small-cap. You can also allocate some in short term debt funds next year. Avoid Gilt funds.

    Now, coming to KYC documents. You have to do it once.

    Documents required:
    1. A passport-sized photograph
    2. PAN card
    3. Identity proof such as your Aadhaar, passport, voter id, or driving license
    4. And an address proof

    More about KYC and to apply for KYC
    https://www.camsonline.com/InvestorServices/COL_ISKYCInfo.aspx

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  • Female, 20, OthersSiliguri, West Bengal

    Thank you for your answers :-)

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  • Sam GhoshFounder and SEBI Regd. Investment Adviser at Wisejay Private LimitedBangalore, Karnataka
    Profile

    No worries. If you have any more question do not hesitate to ask.

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