10 Best Short Term and Long Term Investment Ideas for Students

In Money Making
Investment Ideas for Students

Investment Ideas for Students

If you are a college student, it won’t be difficult for you to understand the pressure caused by the academic burden and financial constraints which ultimately leads to an imbalance in your social life. Trust me, investment is the ultimate solution to your financial problems. Investment ideas for students enable individuals to make a significant sum of money just by investing a few dollars.

The common perception states that you cannot take part in investments unless you are financially stable and have proper information about certain business terms like Profit Margin, Return on Investment or Break Even Point.

But the research states that if you have few extra bucks in your pocket, it won’t be hard for you to make additional income, and achieve your economic dreams without being heavy on your daily schedule.


investment ideas for students
Short and Long Term Investment Ideas for Students


Investment Ideas for Students and Pre-requisites

There are 10 different short and long-term investment ideas for students which are proficient enough to generate the higher yield with overall lower investment.

But before jumping on the basic ideas, you should understand the complexities of investment and its pre-requisites to avoid any sort of financial instability in the future.


Understand the Risk Involved in Investment

While scanning through the different factors of investment, we often forget to consider the risk element. As a college student you might not be fully ready to bear the heavy shocks of risks therefore, it is recommended to understand the mechanism of risk before entering into the field of investment

The risk is the positive yet threatening part of the investment because of the greater your risk, the better you get. It’s said to be positive at the times of higher returns, however, if the investment fails to fulfill its requirements, then you might have to lose all of your money without even receiving any return.

It’s better to analyze the impact of risk before making the final investment decision.


investment ideas for students
Investment Ideas for Students and Pre-requisites


Tenure of Each Investment

Traditionally investments are made either for the short term or the longer term. The time period of short-term investments is usually under 12 to 18 months depending on the project nature. Whereas, long-term investments are made for 3 to 5 years.

  • Short-term investments are safer and less risk-oriented in nature than the long-term investments
  • Short-term investments are the best investment for students because it requires fewer capital requirements
  • Long-term investments are better in the terms of return and business portfolio.
  • Those students who are planning to start their career as the investor or business person should consider investing in the long-time


Best Short Term Investment Ideas for Students

If you are planning to save some of your money and invest some for-profit purposes then, you should check out the short-term investment opportunities for students and how those opportunities should be exploited for higher returns in lesser time.


  1. Dividend Reinvestment Plan

Dividend Reinvestment plan often referred a DRIP or DRP allows the college students to buy the stock from different companies without involving any broker. For starting the investment procedure, the college students should have the financial power of buying at least one share of the company.

As a DRIP investor, the college students will also get the chance of participating in the business of the company and take valid part in the decision making.


How does it work?

As an investing student, you can take any company and check their annual financial statements for gaining information about the dividend rate, share price and expected the amount of the premium.

There are many companies in the market which sell their shares directly to the investors. For participating purposes, you need to contact the registrar of the company and get information about the banks which are dealing with the company shares.



  • No initial or processing fee is required to buy the short-term dividends from the company. Banks usually don’t charge any fee from the investor and even if they do so, the amount is very minimal
  • You can invest the very little amount in the company and still get a safer return on monthly basis. You can also invest a little amount on regular basis for increasing your overall share.


investment ideas for students
Dividend Reinvestment Plan


  1. Investment in Short-term Mutual Funds

It has been observed that now many college students are investing in mutual funds and taking keen interested in the working of the market.

As mutual funds market is not concentrated in terms of categories and profitability, therefore, now college students have the good option of investing less than $500 in the market


How does it Work?

Mutual funds are basically referred as the pool of investments where different people tend to invest dissimilar some of the money for acquiring the profit. Mutual funds are safer and less demanding in terms of initial investment and risk.

Since the mutual fund market focuses on the asset class, therefore, the chances of investment loss are decreased to the minimum.

As a college student, you can easily make the investment of $100 or more in the mutual funds and can easily start enjoying the profit based on the tenure of the investment.



  • College students are investing in mutual funds because they are less expensive and funds can be handled easily by the young investors
  • Mutual funds help in the building of investment portfolio and can be used as way of entering into the world of long-term investments
  • Best investment option for those students who are planning to gain some knowledge about the asset class and its working mechanism.


investment ideas for students
Investment in Short-term Mutual Funds


  1. Become a part of Lending Group

Lending clubs are those platforms which tend to create a connection between the lender of the money and borrower. If you think you can’t bear any sort of risk and you are not fine with the working mechanism of the traditional investment industry then, the lending club is the best investment ideas for students.


How does it work?

The lending group aims to take a certain sum of money from a lender in a systematic manner. The borrowed money is distributed amongst the registered borrowers based on the principle of loan-return.

The borrowers tend to pay back the money after some time with surcharge and the surcharge is treated as the interest for the lending party.



  • Consists of the zero risk.
  • Guaranteed return on investment.
  • Safe investment option for the college students.


investment ideas for students
Become a part of Lending Group


  1. Opt for Online Saving Accounts

Online saving accounts enable the students to save their excess money in the bank account for the shorter period of time. The investment in online saving accounts consists of the zero risk which means you will get the return at any cost.


How does it work?

  • Online saving accounts are operated by the commercial banks but these accounts are different from the traditional saving accounts
  • The return rate or interest is slightly higher. Moreover, college students are also allowed to withdraw a specific sum of money without getting worried about the loss of interest.
  • For setting up the account, you need to sign up with the minimum required account and then, wait for the next month for earning the profit in terms of interest.
investment ideas for students
Opt for Online Saving Accounts
  1. Stock Accounts

The working of the stock accounts and savings account is almost the same however, stock accounts are not secured in nature. The saving accounts are secured by the FDIC which means you will be compensated by the bank in case of any unforeseen event.

Although stock accounts lack the security, they are more efficient in terms of return and can help you in making a higher profit with minimal initial investment.


  • Best investment ideas for students with less risk orientation
  • Can help in generating higher revenues with fewer chances of investment loss.
investment ideas for students
Stock Accounts


Best Long-Term Investment Ideas for Students

Long-term investments ideas are best options for the risk-takers. The mentioned long-term investment ideas might sound little threatening but they’re definitely capable of generating the highest yield and change the structure of your business portfolio.


  1. Investment in Long-term COD’s

Certificate of deposit is another best investment for students because these deposits allow the students to store their money in the bank treasury for the specific time period.

The money in the treasury account is stored for the period of 3 to 5 years and can help the students in gaining a higher return.


How does it work?

COD’s are basically backed by the government because they are government securities which are kept in the treasury accounts and are used for the exchange purposes. These deposits allow the banks to extend their business and help the students in generating additional money on monthly basis.



  • Long-term investment with higher chances of return.
  • Provide the return assurance to the investor thus, increasing the overall security
  • Comparatively lower in risk with higher market yield.


investment ideas for students
Investment in Long-term COD’s


  1. Investment in the Real Estate

As the industry of real estate is on the rise, therefore, many students have started to take interest in the industry and are investing in the real estate. The real estate industry is profitable because it tends to work on the basis of high-profit anticipation and future growth.

Though real estate industry requires the higher initial investment, it is still considered as the best investing option for the college students.


How does it work?

The real estate owners tend to acquire the certain sum of money from the potential investors and reinvest the acquired amount for generating the revenues. In the real estate business, profits are always generated through selling or purchasing of the property.



  • Higher profitability with a viable option of portfolio making.
  • A number of investing options. For instance, as an investing student, you can go for rental properties, trading or associate yourself with investment groups
investment ideas for students
Investment in the Real Estate


  1. Investment in Covered Calls

If you are an experienced investor with good financial support, you should go for investment in covered calls. The category of covered calls is linked with the stock market and investors are just supposed to sell off their current shares at the premium price.

As a college student, you can easily invest in the shares once and after that, you only need to invest your time for selling the shares to the right people at a right price.

  • The investment is long term because you won’t be able to leave the market right away or
    doesn’t have the full leverage of withdrawing your shares
  • The investment is riskier but tends to generate higher revenues.


  1. Invest in your Business

The best long-term investment is the one which allows you to be your own boss. If you have the business temperament then, what could be better than investing in your business?

For starting your business, you need to make a sound business plan, invest adequate
amount and then, wait to become a great entrepreneur.


  1. Checking the Exchange Economy

If you have the strong financial back and you are also a risk taker then, investment in the individual stock is the best option for you. As individual stocks tend to operate in the open stock market, therefore, they are highly influenced by the changes in the economy and market condition.

If the market is going down, you will also have to bear the loss and if the market is
going up then, ultimately you will enjoy the higher profits.


Investment ideas for students Info graphics
Bottom Line:

No matter how much money you are planning to invest in any sort of business, always remember that the success can also be achieved through consistency, higher risk tolerance and proper knowledge about the industry in which you are investing.

As a college student, you are not expected to acquire technical knowledge about the industry but you should know the investment mechanism and on-going trends.

So what are your investment plans? If you find our work on Investment Ideas For Students helpful then, do Make us aware by leaving your comments below.

You May Also Like To Read:

15 Online Part Time Jobs

Facebook Money Making Techniques

Earn Money from Mobile Apps Online

A Complete Affiliate Marketing Guide for Beginners

Join Our Newsletter!

Love Earnlite? We love to tell you about our new updates. Subscribe to newsletter!

You may also read!

ripple price prediction

Ripple Price Prediction – XRP Price Forecast For 2018

What is Ripple? Ripple (XRP) same like any other cryptocurrency. However, there are some distinctive features which make it different

How to invest in bitcoin

How To Invest In Bitcoin? A Bitcoin Investment Guide For Beginners

What Actually Is Bitcoin? Bitcoin is a digital payment system. It is a cryptocurrency that is used globally. It

motivational speech topics

Best Motivational Speech Topics [30 Inspirational Speech Topics]

Standing out and giving speeches to anyone doesn’t make you a motivational speaker. You might have everything in your


Leave a reply:

Your email address will not be published.

Mobile Sliding Menu