Introduction

As you grow older, it is crucial to learn how to manage your finances and make preparations for the future effectively. Even if your primary concentration is on your education, it is never too early to start considering your long-term financial security. Here comes the investment option that can meet your long-term goals, i.e., mutual funds.

When investing in mutual funds, you have an advantage as a student: time. You can utilize compounding to amass a considerable amount of money over time if you start early and stay consistent.

Open Your free Demat Account in just 5 minutes!

Let's explore the different features of mutual funds and their benefits for students.

What are the Benefits of Investing in Mutual Funds for Students?

Investing in mutual funds as a student has many benefits. They are -

1. Diversification

Mutual funds allow you to invest in many assets, even with little money. It helps lower the risk because the risk is spread across different investments.

2. Professional Management

Mutual funds are managed by experts with multiple years of experience. They make decisions about where to invest the money in the fund. Their knowledge and research can help your investments perform better.

3. Accessibility and Affordability

Mutual funds are simple to access and do not require a hefty initial commitment. You can start investing with as low as Rs 500 per month.

4. Flexibility

There are several types of mutual funds to choose from, depending on what you want to achieve with your money and how much risk you're ready to face.

Top 3 Mutual Funds for Students

Here are the top three mutual funds for students in India:

1. HDFC Mid-Cap Opportunities Fund

This fund focuses on investing in medium-sized firms with great growth potential. It can help grow your money over time by selecting equities from the Indian market's mid-cap section.

2. SBI Bluechip Fund

This fund is another popular option for students. It invests in large companies known for their stability and strong presence in the market. This fund aims to provide long-term growth for investors' money.

3. Mirae Asset Tax Saver Fund

This fund has two benefits: it allows you to save on taxes under Section 80Cof the Income Tax Act, 1961, and aims at long-term growth. This fund invests in diverse assets, ranging from small to large companies.

The Bottom Line

It's critical to complete your research before investing in mutual funds. Understand your goals, the risk you can handle, and the time you can spare on exploring the different aspects of the markets.

Examine how various mutual funds have fared in the past, how much expenses they charge, and what strategies they employ. If you need more clarification, get in touch with an expert before deciding.

Related Blogs: What is a Holding Period | How To Choose High-Return Mutual Funds For Your Portfolio | Mutual Fund V/s Fixed Deposit | How Often Should You Review Your Mutual Funds Investment