It was in 2020 that Sai Krishna (19), an engineering student actively engaged in stocks and shares. Inspired by the stories of Ratan Tata, Rakesh Jhunjhunwala and Bill Gates, and inspired by books like The Little Book of Common Sense of Investing (by John C Bogle), Krishna became a
day trader.
Several like Krishna are dabbling in the stock market, find experts, who point to the pandemic. Students between the age group of 17 and 21 are taking part in discussions around the stock market. Moreover, they also claim that students now understand the trajectory of the Indian economy and are able to realise that taking big risks to get profitable returns are an effective way to sustain the high inflation rates. Drifting away from the average Indian family mindset of investing in financial instruments, like fixed deposits, mutual funds, recurring deposits, students now want to ‘evolve’ and set a new financial template to earn gains, claim experts.
Nisary Mahesh, founder of HerMoneyTalks, a financial platform based in Bengaluru, believes that a lot of financial clubs have cropped up in many leading colleges in Bengaluru, making it mandatory for students to learn the basic fundamentals of trading in stocks. “More students are now finding opportunities to invest in stocks. According to our survey on what lures youngsters into the stock market, we found that financial advertisements on television, especially during cricket tournaments, have impressed them.
I have conducted over 250 online sessions on financial awareness among students across India, and the participation has only increased. We now find at least 100 to 120 students attending the sessions, compared to a lower turnout during the pre-pandemic times,” says Mahesh, who also cautions freshers against investing in companies that have just gone public, and insists on investing in ‘tried-and- tested’ stocks.
Kumar V Jahgirdar, a Bengaluru-based stockbroker and member of the National Stock Exchange for more than 30 years, says, “About 50-60 students in their mid-teens have approached me for tips on investing in stocks, recently. It is important to note that investing in equities is not a gamble.
Students these days want to make a quick buck, but I believe it should always be a long-term investment that is focused on security,” says Jahgirdar, who also believes that students would predominantly prefer investing firms like information technology or established multinational corporations. Akshay Patil, an engineering student, who wanted to create a passive income for himself, prefers investing in monopoly companies. “I started off by investing in three to five companies and then changed my decision based on some technical and market factors. The pandemic gave me the time to understand the market better after which I have now moved to cryptos,” he says.
Ritvik Vipin, co-founder of Havenspire, a stock market training platform, finds 85 per cent of their participants are college-going students. What used to be just 30 members per batch before the pandemic, has now shot up to 100, claims Vipin. “A lot of our students are now opening DMAT accounts and making an official entry into the market. Students find the experience of trading very fascinating because they are thrilled to see their pocket money double and triple. However, a student must develop discipline and get rid of certain emotions like disappointment if he/she incurs losses,” says Vipin.
Aditya Chandrashekar, a techie, who started actively investing in stocks during his final semester in college last year, says that the pandemic made him an active trader in equities. “With high inflation rates, I did not find it right to invest in a fixed deposit. I believe that investing in big companies is a safe option to start with. I have invested in stock of firms like steel, insurance and financial services,” he says.