Where to start investing as a 18 year old?

Photo by PiggyBank on Unsplash

Before anything, I should state that I am not a financial advisor and that none of the below constitutes financial advice. I am merely an individual who likes to share his opinion on various areas of interest. With that out of the way, I am going to break this up into a few sections for your reading pleasure.

Where to start investing as a 18 year old?

Maybe you’ve made your first freelancing money and want to invest it somewhere where it will grow, or you’ve borrowed money from your parents. The first step is to figure out where you want to put your money. Your money is safe in your bank account, but it does not grow much. Whenever you invest in the stock market, you risk losing money. So, if you truly want to invest your money, think of something that will improve in value rather than decrease.

Don’t get caught up in the enormous red candles or losses; investing is a patience game. You’ll make money, but it’ll take some time for your portfolio to become green.

This blog is solely about ‘investing,’ not ‘trading.’ I’ll list all the locations you can try given the risk involved:

  1. Index Mutual Funds

Index Mutual funds are the best way to start investing in the stock market, all you have to select is your choice of fund and invest the money. Index funds takes and actively invests your money into the top 50 companies for ‘Nifty50’ and top 100 companies for ‘Sensex’ respectively. Investing into index funds usually means your money is much safer compared to the custom funds. Generally index funds gives return of around 15–20%.

2. Stock Market

Now if you are actively learning the market and collecting knowledge. It’s time for you to try your hands on the direct stocks of the company. It can be in any sector. I would suggest you to look for the stocks in the sector in you are having knowledge. Don’t go all into your funds, start slow and gradually increase your funds.

3. Crypto

Of course you might also want to go to the moon after coming across these emoji 🚀🌙. But you must that crypto are the most volatile among the all listed. Surely you can make more in crypto but you must beware of the meme coins and the rugpulls. Don’t fall for any new coins and scam DM’s. Start investing into top leading coins in the market like Bitcoin, Ethereum, Litecoin, etc.

List of apps I use to invest:

  1. Groww: invest in Stocks and Direct Mutual Funds earn ₹100 straight to your groww balance.
  2. Coinswitch: get FREE BITCOIN worth ₹50 on downloading the CoinSwitch Kuber app
  3. Binance lite: sign up and deposit more than $50 to receive 100 USDT cashback
  4. Binance standard: earn 10% commission back on every trade across Binance Spot, Futures, and Pool.