Got (some) cash? How students can and should invest their money

YouTube / TheRyersonian – via Iframely

For many college and university students, investing is a foreign concept typically reserved for adults with established careers. But it certainly doesn’t have to be. In fact, it doesn’t hurt at all to get a leg up on your investment portfolio while in school, because students have what others don’t — time.

Beyond that, technology makes investing much simpler. No longer do you have to call a stockbroker and have him or her buy and sell for you. Now, everything is available online which allows you to handle your investments at any time of the day.

The fact of the matter is, investing some money at an early age can lead to big returns in the future, and depending on your risk tolerance and how much money you have, you can find an investment strategy that works for you.


Courtesy Pictures of Money via Flickr

Tips for kick-starting your investment portfolio:

Do your research before diving into the stock market:

Make sure you’re choosing stocks with solid reputations. “Invest in what you know, good quality companies that are leaders in their industries, that pay a dividend and increase that dividend repeatedly, and that’s how you make the money,” says Pattie Lovett-Reid, CTV’s chief financial commentator. In addition, look for companies that are thinking ahead, have great balance sheets and a lot of growth potential.

Consider a balanced mutual fund:

A balanced mutual fund is a lot safer than the stock market. Two major perks of a balanced mutual fund are income and modest capital appreciation. Lovett-Reid says, “Put a little aside each month and put it into a really good balanced mutual fund and then leave it there. Allow it to grow overtime.”

Make sure your investment portfolio is diverse:

Don’t limit yourself to one or two stocks — pick a few.

“The problem is, if you just pick one or two stocks, you run the risk of being invested in one country, one currency, or maybe even one company, and having too much exposure,” says Lovett-Reid. Investing in more can reduce risk and catapult your investment returns, because it opens you up to a wide array of assets and sectors.

Want to begin investing? Check out reporter Alicja Grzadkowska’s article on financial learning resources right here on campus.

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