For many people, the word “investing” conjures up images of men in suits, monitoring the exchange of millions of dollars on a stock ticker. I’m here to tell you: you don’t need to be the Wolf of Wall Street to start investing. It’s okay if you’re more of a Main Street. Even if you only have a few rupees to spare, your money will grow with compound interest. The key to building wealth is developing good habits like regularly putting money away every month and nixing your Planet Fitness membership that you haven’t used in years (that alone saves you over $100/year). Once you have a little money to play with, you can start to invest. In this article we will discuss the Best 3 Safest Method to Start Investing in Stock Market
What Are The Safest Methods To Start Investing In A Stock Market?
Always stick to the following safest methods;
Try The Cookie Jar Approach
Saving money and investing it are closely connected. In order to invest money, you first have to save some up. That will take a lot less time than you think, and you can do it in very small steps. If you’ve never been a saver, you can start by putting away just ₹100 per week. That may not seem like a lot, but over the course of a year, it comes to over ₹5000. Try putting ₹100 into an envelope, shoebox, a small safe, or even that legendary bank of first resort, the cookie jar. Though this may sound silly, it’s often a necessary first step. Get yourself into the habit of living on a little bit less than you earn, and stash the savings away in a safe place.
The electronic equivalent of the cookie jar is the online savings account; it’s separate from your checking account. The money can be withdrawn in two business days if you need it, but it’s not linked to your debit card. Then when the stash is large enough, you can take it out and move it into some actual investment vehicles.
Also Read: Financial Tips For Young Adults In 2022
Start Investing In Stock Market With Small Amount
When it comes to investing in the stock market, cost is often the barrier to entry. It takes money to make money, right? Not anymore. The internet has made it easy for consumers to get started with very little upfront money. That means you can put a few rupees in to familiarize yourself with investing before making a bigger commitment. It’s a great way to learn about investing while putting very little money at risk. Today, there are increasing numbers of options that have swung open doors to a new generation of investors letting you get started with as little as ₹100 and charge no trade commissions.
In the past, stockbrokers charged commissions of several rupees every time you bought or sold stock. That made it cost-prohibitive to invest in even a single stock with less than hundreds or thousands of rupees. Plus the ability to invest in companies with fractional/partial shares is a complete game-changer with investing. With fractional shares, it means you can diversify your portfolio even more while saving money. Instead of investing in a full share, you can buy a fraction of a share.
Invest In Mutual Fund: The Safest Investment Option
Mutual funds are investment securities that allow you to invest in a portfolio of stocks and bonds with a single transaction, making them perfect for new investors. The trouble is many mutual fund companies require initial minimum investments of between ₹50,000 and ₹5,00,000. If you’re a first-time investor with little money to invest, those minimums can be out of reach. But some mutual fund companies will waive the account minimums if you agree to automatic monthly investments of between ₹5000 and ₹10,000. Automatic investing is a common feature with mutual funds.
So, you can invest in a Mutual fund as a retirement plan and get a handsome return without taking a single percentage risk.
There are plenty of ways to start investing with safety, with many online and app-based platforms making it easier than ever. All you have to do is start somewhere. Once you do, it will get easier as time goes on, and your future self will love you for it.