When it comes to making capital and earning money, along with saving, you also have to invest. People often understand that you can invest only when you have more money, but this is completely wrong. You can also start investing with less money. If you have a good knowledge about investment instruments, then you can start investing from a thousand rupees per month and you do not have to bother for it. Through this article, we are going to give you information about seven ways to start investing with less money.
1. Save first
To start investing, first you need to save some money. You can save by gradually making changes in your expenses and prohibiting unnecessary expenses. You can start saving by saving a little money every week. Make your monthly budget and allocate money for every expenditure and try to spend according to the budget, you can change the budget if there is a need. In this way, gradually make a habit of saving money and keep this habit.
2. Keep money in high interest savings account
If you are worried about how to invest with less money, then a savings account paying interest at a higher rate may be your choice. You can keep the money in the savings bank account for any emergency, as well as you can get a good return on your deposit. Nowadays, some online savings accounts offer high interest, which is up to 6-7% and there is no need to maintain minimum deposits. You can withdraw money at any time and thus it serves as your emergency account as well as savings account. Once you have accumulated some more money, you can also invest it in other options.
3. Invest in low risk mutual funds
A mutual fund is an investment avenue, through which you can invest in a portfolio of stocks and bonds according to your budget. Investors’ money is invested in stocks, bonds or debt, etc. by mutual funds. Many mutual funds offer investment through SIP (SIP). SIP is a method of investing in mutual funds, through which the investor invests a fixed amount in a mutual fund at fixed intervals according to his budget. It is better to invest in a mutual fund based on your investment goals, risk appetite and investment duration. Low risk investors can opt for debt mutual funds. There is also less risk and safety of capital. If you want better returns, then you can invest in hybrid funds.
4. Invest in government bonds
India’s debt market consists of bonds issued by both public and private companies. Debt securities issued by both private companies and the government have higher credit ratings and are less risky investment options than equities. But if you are starting to invest and do not want to take any kind of risk, then you should invest in government bonds. Government bonds are one of the safest investment options when compared to private sector bonds. These are issued by the government, so there is no possibility of default in such securities and the investor avoids credit risk. If you are looking for a short-term investment with low risk, then government bonds are one of the best options for you.
5. Invest for retirement
Retirement planning is one of the most important parts of financial planning. One of the best ways to start investing is to make retirement plans. If you are a government employee or private sector professional, it is mandatory for you to contribute to your EPF account, although you can also opt for PPF account for additional savings. You can start with an investment of at least Rs 500 every month. You can also avail tax benefits from this. In retirement planning you have to focus on making big capital, so that after retirement you can live life with financial freedom without compromising your lifestyle.
6. Invest in a low cost business
If you have very little money to invest, then the crowdfunding website can provide you the avenue to get good returns. Crowdfunding websites in India allow you to invest in start-ups or businesses. So if you want to take a little risk and invest, then crowdfunding can be an additional option in addition to equity investment.
7. Invest for the long term
You can invest a small amount of your savings in long-term investment instruments like ELSS and PPF schemes. The right investment tools will help you increase your money and you will be able to create a good fund in the long run even if you invest less. You can invest in market related investment options to meet your long term investment goals.