You might have received some “generous” amount of cash as a gift after your 12th Boards, or you have frugally saved your lunch money during your school years, and after watching some Fininfluencers, now you want to invest your money in the Indian Stock Market. You have come to the right place for help. In this article, we will talk about the 5 best stocks for Indian college students.
We will also chat a little bit about how a beginner investor should invest in the stock market. And we will also mention some bonus stocks for you to add to your stock portfolio.
But first, you should pat yourself for even considering investing in the stock market when others of your age are throwing away money by partying, going to movies, dining out, etc.
And a big thumbs up from Money Premier to YOU- 👍
Now let’s get back to the main story.
Like others, we could have recommended you invest all your money in a Nifty50 ETF or an Index Fund, but we know the ‘thrill’ you get when you invest in single/individual stocks which you have carefully chosen.
And you need a bit of thrill to make investing fun!
But you must be extremely careful in the beginning as it is very easy to lose money in the Stock Market. Investing in random shares or penny stocks (generally, stocks below Rs. 20/- are considered penny stocks) will wipe out your entire capital within days, if not hours.
So, here is a question –
How Should a Beginner Invest In The Stock Market?
In the beginning, an investor should aim for Capital Preservation rather than Capital Appreciation.
With experience and time, you will slowly learn how to generate quality returns from your investments in the stock market. Always remember that in the stock market, slow and steady always wins the race.
It is like the old “Hare And Tortoise” story. If you try to win the race with sheer brute force, you will lose your invested capital.
Now, let us get back to our main topic.
But before we start, here we are assuming that you will be investing Rs. 10,000/-, or in words, Rupees Ten Thousand, in the stock market. And you will hold on to your investment for dear life and build a long-term portfolio around it.
Keeping that in mind, here are the –
Top 5 Stocks For Indian College Students
- Reliance Industries (NSE: RELIANCE) – Reliance Industries, led by Indian billionaire Mukesh Ambani is a conglomerate that owns telecom brands like Reliance Jio, retail brands like Reliance Retail, Reliance Fresh, Reliance Digital, etc., online brands like Ajio, Netmeds, etc.
The main source of the company’s revenue is oil and gas. Reliance owns the World’s Largest Oil and Gas Refinery which is located in Jamnagar Gujarat.
With a market capitalization of more than Rs. 16 Lakh Crore, the largest in the Indian stock market, in the last 5 years, the stock of Reliance Industries has generated a return of nearly 200%.
Reliance Industries is a dividend payer. It means every year the company pays a certain percentage of its profit to its shareholders in the form of dividends. The money is directly credited to the shareholder’s bank account.
On the 06th of May 2022, Reliance Industries announced an annual dividend of Rs. 8.00/- per share for its shareholders.
- Tata Consultancy Services (NSE: TCS) – Headquartered in Mumbai, TCS is a world-famous IT services company. The company has its business spread across 46 countries. With a revenue of more than $26 Billion as of December 2022, TCS is a shining diamond of the Tata Group.
Most of the college students from the engineering department have heard about TCS. And a company like TCS is one of the starting points of the working career for many graduates.
So, if you want to become an employee of one of the premier IT companies in India, why not become a shareholder of such a company?
- HDFC Bank (NSE: HDFCBANK) – Headquartered in Mumbai, HDFC Bank was one of the first banks in India to adopt and utilize technology to serve its customers better. With a customer base of more than 68 million as of 4th of April 2022, HDFC Bank is the largest private sector bank in India. And it is the 10th largest bank in the world.
And in the last 5 years, shares of HDFC Bank have generated a total return of more than 70% as of January 2023.
It means if you had invested Rs. 1,000/- five years ago, it would have become Rs. 1,700/- by January 2023.
- Infosys (NSE: INFY) – Founded in Pune and headquartered in Bengaluru, Infosys is among one of the biggest Indian MNC IT companies. And with a market capitalization of nearly 6 and a half lakh crore rupees, Infosys is the third largest company listed in the Indian stock market.
Infosys was founded by two of India’s brilliant entrepreneurs N R Narayana Murthy and Nandan Nilekani.
Just so you know, Mr. Nilekani was the brain behind one of India’s most-used tech, UPI.
If someone had invested in Infosys’s IPO in June 1993 and bought just 10 shares at the price of Rs. 95/- per share. Then the value of that investment of Rs. 950/- as of January 2023 stands at more than Rs. 78,00,000/-. In words – More than Seventy-Eight Lakh Rupees. 😉
If you want to see the whole calculation, do let us know in the comment section. If we get enough interest, we will explain the whole calculation in a separate detailed article.
- ICICI Bank (NSE: ICICIBANK) – Founded in Gujarat and headquartered in Mumbai, ICICI Bank is the 6th largest company in the Indian stock market in terms of market cap. The bank operates in multiple countries, such as the US, UK, Canada, Singapore, Hong Kong, Bahrain, Qatar, Oman, UAE, and many more.
The shares of ICICI Bank have generated mouth-watering returns of more than 7,000% since January 2000.
It means if you had bought shares of ICICI Bank worth Rs. 1,000/- in January of 2000, then the value of your investment as of January 2023 would have been more than Rs. 70,000/-.
And the bank is an excellent dividend payer.
That was the list of 5 stocks every Indian college student should own.
Here we have not talked about the financials of the companies or some valuation metrics like P/E Ratio, PEG Ratio (not that peg 🥃), ROCE, ROI, and many more.
A lot of research and time goes behind picking a quality business that in the future, gives us handsome returns.
A good place to start researching and evaluating a listed company is its Annual Report. The annual report of a listed company is available in the “Investor Relation” section of its website.
The companies we have mentioned in this list are the cream of the Indian stock market and even, the Indian economy.
So, in the short term, some of these companies might face a few hiccups but in the long term, all of them will end up giving their investors handsome returns.
But if you want to seriously invest in the stock market, then you will have to learn fundamental analysis (the technical term for “how to analyze a business/company”)
You might find this article a good starting point.
As promised earlier, now we are going to mention some bonus shares for you.
Ok. So let us move on.
Bonus Stocks For Indian College Students To Invest In
Before you start buying the shares of the companies from the list of bonus stocks for Indian college students, few things you need to keep in mind.
We are going to assume that you have already invested your first Ten Thousand Rupees in the stocks we have mentioned above. And you have an extra 20% or 25% cash to invest in the stock market. That is, an extra Rs. 2,000/- to 2,500/- to invest.
The bonus stocks we are going to mention are a bit risky compared to the list above, as they belong to the Mid-cap category.
What are Mid-Cap Stocks?
List of 3 Mid-Cap Stocks For Indian College Students
- Deepak Nitrite (NSE: DEEPAKNTR) – Deepak Nitrite is a Gujarat-based chemical company. It is a market leader in producing Sodium Nitrite and Phenols. And the company has a huge export market.
Since October 2011, the shares of Deepak Nitrite have generated a return of more than 10,500%.
It means if you had invested Rs. 1,000 in Deepak Nitrite on October 2011, then the value of your investment as of January 2023 would have stood at Rs. 1,05,000/-.
- Tube Investments Of India Limited (NSE: TIINDIA) – TII is a Murugappa group company that specializes in metal-formed products. The main product of the company is the steel and metal pipes used in major construction and infrastructure projects.
Since the listing of the company in the Indian stock market in November of 2017, the shares of Tube Investments of India have generated a total return of nearly 950%.
- Astral Poly Technik Limited (NSE: ASTRAL) – APTL or commonly known as Astral Pipes, is a leading manufacturer of CPVC and PVC pipes in India.
The company is a market leader in the domestic pipes and fittings market.
Since its listing in May of 2007, the shares of Astral Pipes have generated a total return of nearly 36,000%.
It means if you had invested Rs. 1,000 in Astral Pipes in May 2007, then the value of your investment as of January 2023 would have stood at nearly Rs. 3,60,000/-.
That was it.
We hope you like the list we made of the 5 best stocks for Indian college students. And along with it the list of bonus shares. If you have any questions or queries, do ask us in the comment section. We will definitely try our best to answer it.
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And as usual, in the end, we will say –
Good Luck and Happy Investing. 😊
Disclaimer: We are not certified financial or stock analysts. The views, investment tips, presumptions, and calculations expressed on Moneypremier.net are not of the website or its management. This article is for Educational Purposes only. Moneypremier.net advises users to check with certified experts before making any financial decisions.
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