How to invest with less money?  Start with Rs. 100

Investing often carries an image of hefty sums and complex portfolios. But what if you dream of growing your wealth but only have ₹100 to start? Well, while the answer is complicated, you can still start investing with a tiny amount. In this blog, we will dive into the world of micro-investing and understand how small investments, too, can help you inch closer to your goals.

You can learn better

Investing with ₹100 isn't just about limited resources; it's about learning, building confidence, and developing healthy financial habits. It allows you to:

• Test the waters: Experiment with different investment options without significant risk.
• Learn by doing: Gain practical experience and understand market behaviour firsthand.
• Celebrate small wins: Witnessing even minor returns can be incredibly motivating.
• Develop discipline: Contributing regularly, even in small amounts, fosters valuable investment discipline.

Where can you invest with ₹100?

With ₹100, traditional stocks and mutual funds might seem out of reach. But fear not! Several avenues cater to micro-investors like you.

• Digital Gold: Invest in small amounts of gold through platforms like Augmont or Groww. Gold acts as a hedge against inflation and offers long-term stability.
• Peer-to-Peer Lending: Platforms like Faircent or LenDenClub allow you to lend directly to individuals or businesses, earning interest on your capital.
• Micro-SIPs: Some mutual funds offer SIP (Systematic Investment Plan) options starting as low as ₹50, like Aditya Birla Savings Fund with its ₹50 minimum SIP.
• Fractional Shares: Platforms like Vested Finance or Stockal allow you to purchase fractional shares of popular companies like Apple or Google, diversifying your portfolio with small amounts.

Key considerations

• Research is key: Understand the risks and potential returns of each platform and investment option before committing your money.
• Start small and consistent: Begin with ₹100 and gradually increase your contribution as you get comfortable.
• Long-term focus: Micro-investing is typically a long-term strategy. Don't expect overnight riches, but enjoy the gradual growth.

Beyond the money

While starting with ₹100 is empowering, remember that true financial well-being encompasses more than just investing.

• Track your expenses: Understand where your money goes and identify areas for potential savings.
• Build an emergency fund: Aim for 3-6 months of living expenses to weather unexpected situations.
• Reduce debt: High-interest debt can hinder your wealth-creation journey. Prioritize paying it off.
• Seek knowledge: Learn about personal finance, investments, and responsible money management.

Inspiration and cautionary tales

Stories abound of individuals starting small and achieving financial success. A young investor started with ₹500 and now manages a sizeable portfolio. Remember, however, that not every journey is the same. Be cautious of unrealistic promises and get-rich-quick schemes. Focus on responsible investing and long-term goals.

Conclusion

Investing with ₹100 might seem insignificant, but it's the spark that ignites your financial journey. With meticulous research, calculated risks, and unwavering discipline, even small beginnings can blossom into a secure and fulfilling financial future. Remember, the most important investment is in yourself: educate yourself, make informed decisions, and enjoy the process!