It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.
Robert Kiyosaki
Stock Markets are extremely popular investment options that have the potential of giving high returns, but how to invest in stock market if you have limited capital?
Investing in stock markets gives you the benefit of having liquid assets and complete transparency. With strict regulation in place, your investment is fairly secure without giving anyone an unfair advantage. Multiple financial instruments make it easier to build your wealth by investing in stock markets through ETFs, IPOs, Mutual Funds, etc.
But a common misconception amongst potential investors is that you need a hefty sum of savings if you’re thinking of investing in stock markets.
One of the best hacks of stock market investments has continually been investing early and growing wealth over a long-term period. However, most of us wait until we accumulate enough wealth before investing in stock markets.
😊Well, you don’t need to do that!
You can start investing in stock markets with little money 💰 as well!
1. Learn the basics!
You must have heard of the rising popularity of investing in IPOs, considering the latest wave of technology-driven unicorns like Zomato and Nykaa go for their IPOs. However, don’t just unthinkingly follow the herd. Do your research and learn the basics like how to open demat account, brokerage charges, taxes on trading like the securities transaction tax before you start investing. These charges have the potential of blocking your investments or bringing down your net profits; therefore, it becomes essential to be aware of them before you start your journey.
2. Don’t let your emotions get the better of you
The golden rule while online stock trading is never to be swayed by sudden profits or sudden losses. Staying consistent and having patience will ultimately lead to wealth maximisation.
3. The cookie-jar approach!
Have you ever owned a piggy bank or a cookie jar in which you’d drop a few coins whenever you got the chance? It was the first savings method taught to us. You can do the same with stock markets as well. You can start by investing as little as Rs. 500 in a SIP and take it from there. Even if it’s a small amount, consistent and regular savings can help you grow your investments in stock markets.
4. Diversify and set financial goals
With plenty of financial instruments to choose from, you can set financial goals for yourself and invest accordingly. Invest in ETFs and SIPs based on the tenure that matches your financial goals.
Takeaway
Investing in stocks is a different journey for every individual because everyone has different goals and risk appetites. Following investment advice from experts is a great insight but don’t be intimidated looking at their large investments.
Start today, start slow and create your own journey towards building your wealth!
Here are 5 investment decisions to take in your early 30s which will help to achieve your goals and dreams.
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