Ideal avenues for students to invest in

Investing is not as time consuming as it used to be. And while most students are not flush with cash, they can take the reins of their financial future early through smart investment choices. 

The more time you give your money to grow, the better the chance you have of earning returns which, when re-invested, compound to grow your savings.
College encourages you to start thinking about tomorrow. Although it may not seem like it now, you are laying the foundation for your financial future.

Knowing how to secure your financial well-being is one of the most important things you will ever need in life. Investments carry various degrees of risk that may depend on the amount invested, its duration and most importantly, the rate of return.

Passive investment: Your first option is passive investing, which simply means that you are not in direct control of the investment process. This is because being a student you are not likely to devote full-time attention to an investment process that requires direct participation like a business venture.

Passive investments are where you literally let your money work for you by buying an investment product. However, it is important to understand your risk tolerance to know which investments to consider and which to avoid. Two passive investment choices Include:

SIMPLEST WAYS TO INVEST

Unit Trusts: A unit trust is one of the simplest ways to invest at the personal level. It is a collective investment scheme, meaning that a number of people pool their money in a fund, which then invests in various assets with the goal of increasing returns over time.

A unit trust reduces your risk of investing directly, whether in the stock market or other markets, by diversifying across various types of investments.

Unit trusts can be used for both short-term and long-term investment objectives. In your case, equity funds or balanced funds would be ideal for medium- to long-term investment goals. Minimum investment amounts and charges are usually flexible making unit trusts accessible to most individuals.

The major benefit of unit trusts is that you do not have to understand the intricate dynamics of financial and capital markets investments to participate.

Join an investment club: This also involves pooling of resources by many individuals but at a less formal setting. Your guide here should be the type of investments and goals being pursued by the investment club, in addition to bonding among the members.

You should therefore be careful who you team up with and there should be a contract signed by all parties to ensure that in case of disputes there is an air-
tight resolution mechanism.

Savings: The final option for you would be to save some more and grow your savings until you complete your studies. You could also make use of this time to do more research on areas that you think might generate better returns for you in the future when you have the time and resources. In the meantime, we encourage you to concentrate more on your studies and save as much you can.