What would be a better way to learn about personal finance and investing early on than starting to invest in stock market as a student?

You will be far ahead of your peers. Once you are an adult and into works, time for learning such important things will be very limited.

Moreover, you probably must have heard a saying: ‘The best time to plant a tree was 20 years ago. The second best is now.’

It is a popular proverb in investing on regret over lost opportunities. Such thing shouldn’t come to you in future – it’s in your hand.

However, it doesn’t mean you immediately open a brokerage account and then buy a stock you saw increasing in price without a prior knowledge of investing in a stock market.

So here is what you can do to start investing in Bhutan Stock Market as a student in Bhutan:

Learn Basics of Stock Market

If you want to invest in a stock market, you must learn some of its basics. Learn what is stock market, how it functions to its purposes.

We have Royal Securities Exchange of Bhutan Ltd (RSEBL) where we can get ideas of our stock market, securities, trade reports etc.

In other countries, one can practise tradings with demo trading accounts with real time trading pattern simulations.

But we do not have such facility in Bhutan. Our stock market size is also very small. It also means the investing risk is low.

You can also learn on stock market, and investing online as well as from someone who has an experience in the stock market.

Check You Have Solid Saving

If you have an upcoming expense, and you don’t have someone who will sponsor, you better save the money for it.

However, if you can manage just investing Nu.1000-2000 won’t burn your pocket. There are shares below Nu.100 in our market.

But you also remember that the best is investing for self. Doing diploma, upskilling, gym etc are few examples of it.

Choose Most suitable Broker

No retail investor can trade stock directly from a stock exchange. It must be routed through an agent called as a stock broker.

It’s to mitigate risk and provide conveniences for investors with business for those brokerage firms.

There are nine licensed brokerage firms in Bhutan. You choose the most reliable one based on their services.

Open Your CD A/c for Shares

This account shows all your stock purchases, bonus shares, right shares, and stock sales as your bank accounts show banking transactions.

It is a Central Depository A/c maintained with Royal Securities Exchange of Bhutan Ltd.

Your broker will ask to submit two filled, and signed forms; a CD Account Opening form, and a Client Agreement form.

When companies declare cash or non-cash dividends, you will get based on records in your CD account prior to ex-dates of them.

Make Your Investing Strategy

Your strategy defines ‘why you’re investing‘ and ‘how you wanna remain invested‘ parts of your investing journey.

You can do ‘Buy and Hold’ if it’s a time in the market to buy and then beat those timing the market.

If you pick companies you feel are undervalued now, it’s a value investing, and a growth investing if you pick those that you expect will grow above average rates.

We can also go for dividend investing strategy by picking companies that are stable and have good dividend payout records.

Study on Company to Invest

Ap Warren Buffett studies a company for at least 5 years before he gets into investing in their stock.

It shows how important it’s to study performances and behaviors of the company you want to invest.

Royal Securities Exchange of Bhutan Ltd (RSEBL) has annual reports of all the public companies in Bhutan.

You can read these reports to analyze financials, and review past record for quality investing decisions.

Start to Place Your Buy Order

How to place buy order for shares in Bhutan stock market? There are two choices; 1) broker doing it for you, 2) doing yourself via app.

In first option, you have to inform the broker on quantities and prices you want to buy. But in second, you can do them inside the app.

It’s very convenient to do stock trading using the m-CaMS app. However, there is annual fee of Nu.500 for it.

Potential Investment Choice

You can also invest in fixed deposit, commercial papers, precious metals, subordinate debts, bonds, and insurance.

There are high-risk investment opportunities like private lending, cryptos, partnerships etc, and also regular bank saving accounts.

However, none of them is as good as investing in stock. Investing in them mean Nu.100-200K money which isn’t possible for a student.

What do you think of investing in stock market as a student? You think it is possible in Bhutan as well? 

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