5 Ways To Invest With Small Amount Of Money

Investments build wealth for you and investing easily becomes a habit. If you are earning, you should invest, even if it is a small amount. You can start with regular savings in traditional investments and use the capital of INR 10,000 - INR 20,000 for better investments. 

Do not be discouraged by the term 'risk.' The word may sound alarming but understanding its range will allow you to spread your investments across low, moderate, and high risk. Small risks with small capital, in both the short and long term, can help you grow your wealth. Let us look at 5 best ways to invest your money in a budget. 

Five Ways To Invest Small Amounts Of Money

1. Index Funds And Exchange-Traded Funds (ETFs)

Index funds and ETFs are a good way to start investing even with a small budget. These track certain indices such as Nifty50 or Sensex and investing in these funds is like investing in the entire index without buying individual stocks. 

2. Mutual Funds

If high-risk investments attract you, start investing in the stock exchange through mutual funds. You can make small to midsize investments. Start with SIP (Systematic Investment Plan) as a beginner. Stagger your investments regularly in equity mutual fund schemes for a term. This saves you from investing lump sums and is a better way of investing for salaried investors who can create wealth over a long-term period. You can start with an investment of INR 500. But be mindful of the risks and keep a close watch on how the investment is progressing.  

3. Corporate Bonds

Corporate bonds issued by private and public holdings use debt funds from investors. By maintaining a fixed period of return, you can generate passive additional income. The interest rate is much higher than traditional investments at reduced or low risk if you are funding on A+ bonds. Although the investment capital is high, you can invest in these bonds from brokers or banks. You can also invest in high-rated corporate bonds on our platform starting as low as INR 1000. 

4. High-Yield Fixed Deposits (FDs)

You can begin investing in high-yield FDs on Grip at INR 5000. These offer fixed monthly returns as high as 9.41%. The returns are 2-4% higher than what most banks in India offer and comfortably beat inflation.  

5. Basket by Grip

Basket by Grip is an industry-first feature in the bond and/or Securitised Debt Instruments (SDIs) market, which offers a theme-based curation of high-yield bonds and/or SDIs. These not only help in earning fixed monthly returns but also diversify your portfolio with minimal effort. You can start investing in Baskets with a small amount of INR 20,000 and diversify your portfolio in one click in different fixed income opportunities.

Conclusion 

The value of money is never stable, so you need to look for ways beyond the savings account to make your funds grow. Start looking at alternative investment options that will compound to high returns. Risks may always be a concern, so if you are a cautious investor, start with low-risk investments. Grip is a digital investment platform for tech-savvy smart investors, offering low to moderate-risk investment options. You only need to invest a fraction of your savings to get attractive returns. 

Frequently Asked Questions On Investing In A Budget

1. Is investing with a small little money worth it?

Yes absolutely! Investing early on will not only help you build good financial habits but also take advantage of the power of compounding. This will ensure greater financial stability in the future. On Grip, you can begin investing at as low as INR633.

2. What should I consider when investing with small amounts of money?

When investing small amounts prefer low-fee options to ensure that your returns are not impacted. Diversify to reduce risk even with limited funds and focus on long-term growth and returns.

3. Can I begin investing with less than INR5000?

You can begin investing at just INR633 on our platform and enjoy fixed monthly returns. 

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Disclaimer - Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading.
This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip does not guarantee or assure any return on investments and accepts no liability for consequences of any actions taken based on the information provided. For more details, please visit www.gripinvest.in

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