Greetings of the day to all the members of CCI Family.
Introduction -
Being a CA Student, i always keep on thinking How to make out money, How to double 1 into 2 and likewise.
I am not the onlyone facing such situation, but eachone of you must be experiencing it.
On the contrary, the need of passing CA final's also keep on pumping me. This thinng drives me crazy.
But after having talk with " CA Aaditya Jain " regarding this matter, he told me you should always invest and get involved in financing activities during the initial days. Because after qualifing you will not have time to think about of you choose Tax or Audit as your carrier.
So through this article you all will come to know about some good option for a CA student to invest.
Good Options for a CA student to Invest
1. Source of funds -
Yes i know what is coming accross your mind right now, i.e we earn just 1000 and he is toking about how to Invest. If you will think like this you will never be able to Invest throughout your life.
I am not asking you to invest the whole stipend but just a certain %age of it. And it will definately help you in Long Run.
For example if Mr x earns 2000 p.m. He xan invest just 5% of his monthly salary i.e 55 OF 2000 = Rs. 100.
2. Points to be remembered before Investing -
(a) The first thing to be considered before investing in any stock is the financial position of the company. If the assets of the company exceed its liabilities, then it is a positive indication calling for
investment. Even if the asset does not equal the liabilities and yet there is an
expecting merger, then also you can invest in these stocks as these may give
you high return in course of time.
(b) First learn the concepts of the market before investing.
You all will be amazed to know That Warren Buffet one of the richest person of the world started investing when he was just 13. He said " Enter into market only aftet getting proper knowledge as well as traing".
(c) Always keep in mind the Risk Factor or stop loss to avoid Risk of losing money.
The next step of successfully dealing with these stocks is to cut down the losses. Sometimes, it happens like this that you keep holding a stock for a long period expecting the big time and the big time is
never hit. So, it is wise to let the stock go if it causes no loss. Because in
the big game of stock trading only the big moves keep to your long term trading
profits. One must be mentally prepared to let down the stock go if it does not
make any loss.
3. Where to Invest -
(a) Park your funds into a fixed deposit
A person can invest an amount for a fixed duration. The banks provide interest rates depending on this loan amount and the tenure of deposit. Pick a bank that offers the highest interest rate and invest your lump sum.
(b) Invest in Mutual Funds
A mutual fund company pools the money of many investors and invests it for them in a collection of securities by purchasing stocks, bonds, money markets and/or other securities. Mutual funds are subject to market risks so be prepared in case you find your NAV lower than the sum invested. Conduct a thorough research on the best mutual fund and select a well balanced fund (in case you are risk averse) before you invest. The advantage you have when investing in a mutual fund is that an expert makes the investments for you.
(c) Investments in National Saving Certificate (NSC)
National Savings Certificate is a post-office savings scheme, backed by the government. The minimum amount of investment is Rs. 100, with no upper cap. NSCs are sold in denominations of Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000 and Rs. 10,000. The rate of interest is 8 percent per annum compounded half yearly. The amount invested in NSCs is eligible for tax deductions under Section 80C; however, the interest you earn would be taxable
(d) Invest In stock Market -
I Hope you all will like the Article as well as my small effort.
Thanks & Regards
Sanyam Arora
CAclubindia
