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How to invest in stock market in India 2020

Written by Deepika Gupta

How to invest in stock market in India 2020

Nowadays, As technology rising day by day, Investing is widely growing in ways to start with some amount of little money. Generally, the main goal of investing in the different platforms is to commit money, and in return, that money will grow as per interset from time to time. Although, all investing platforms have risks. The higher the risk, the more you earn money accordingly. If you are beginners on this platform first, You can get started investing with a very small amount, even $5. Because, if you invest with just $5, you have to know about the investing process and how to grow your money.

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There are many easy ways to start investing in stock market in which some of the best are the following:

  1. Invest in Mutual funds
  2. Investing money as a Robo-advisors
  3. Invest money in Your Spare Change with Acorns
  4. Invest money in Certificates Of Deposit (CDs)
  5. Peer to Peer Lending
  6. Investing in Treasury Securities
  7. Investing in Commodities

  1. Invest in Mutual funds

a mutual fund is one of the best easy ways to start investing in– mutual funds of stocks, stocks, or ETFs made up of stocks. a mutual fund is a process when an asset management company (AMC) investments from a different type of individual and institutional investors to purchase these securities respectively.

The AMCs have many best fund managers who have to manage their investments from investors. In brief, mutual funds club investments from different categories of investors to invest their amount in stocks, bonds, and other similar avenues. Mutual fund investors are assigned with specific fund units related to their investment relatively. Mutual fund Investors are mainly allowed to purchase fund units. Best mutual funds in India are authorized by the Securities and Exchange Board of India (SEBI), and hence, they can be considered as a safe and secure investment.

 

  1. Investing money as a Robo-advisors

Robo-advisors are also easy ways to start investing in stock market with little amount. If you had not to hire any human investment manager due to high cost, after being a Robo-advisor you can do it easily. In this process, You can use a service such as M1 Finance which allows you to automatically increase your investments in different categories of stocks and bonds. You can start with investments of the little amount at $100, apart from that, it is also the best option if you want to avoid large fees and easier access to your money accordingly. Some common examples of Robo advisors are Betterment and Wealtfront relatively.

 

  1. Invest money in Your Spare Change with Acorns

Acorns are the best investing platform to start with little money in stock market  that permits you to invest in spare change by rounding up your purchases accordingly. To start investing in this platform, you have to simply link your credit or debit card and once your account balance will be $5, you can start investing money with Acorns using Exchange-Traded Funds or ETFs. Here, You can freely choose to invest money conservatively or aggressively and even round up the amount to $10 to increase your investment funds specifically.

 

  1. Invest money in Certificates Of Deposit (CDs)

Certificates Of Deposit (CDs) is one of the oldest and easy ways to start investing in stock market. This platform is very safe to use and it’s clear all your amount at the end of the process. To start with CDs, first, it is essential to buy a CD at a fixed rate which is used to see exactly how much money you will have made. after seeing this, The bank then takes your money and lends it out accordingly. Besides that, CDs provide so much lower returns than other types of little investments, but the risk is much lower in this process.

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  1. Peer to Peer Lending

If you have an amount of $1,000, then you can find easy ways to start investing simply with Peer to Peer Lending. Although, It is very risky because you don’t know about any individuals. Apart from that, investing money in friends and relatives business is also risky. Some companies like Prosper and Lending Club gives you proper guidance and you can easily be started with just a little bit of money.

The two most common platforms to lend money to others are the following:

  • Prosper: In prosper, You can start lending out with only $25 according to specific criteria
  • Lending Club: The larger of the two platforms and Certificates Of Deposit (CDs) is also an alternative option.

 

  1. Investing in Treasury Securities

US Treasury securities are also one of the easy ways to start investing in stock market if you are beginners. Although, unlike with mutual funds that you can spread your investment and make you profitable, treasury securities with not offer great returns. besides that, in this investment, you can save more money after some time.

the two most common ways of investing are:

  • first, Directly through the U.S. Treasury at Treasury Direct
  • Second with the help of your brokerage

 

  1. Investing in Commodities

Investing in Commodities like natural gas, oil, renewable energy, and agricultural products (crops or livestock) are also easy ways to start investing in stock market. After investing in various types of commodities, you can rely on the supply and demand of the commodity. The work process of a commodity is that first you have to buy a futures contract, and if the market price is higher then your investment is paying off and you are making money easily. The most common example for investors to invest in commodities with the help of just $1,000 is through ETFs or ETNs.

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Conclusion:

After analyzing all about how to Start Investing in stock market we reach on the conclusion that, There are many ways to start investing with little money. Here, We covered all important and easy ways to start investing with some amount. But, If you want more money to invest, then it opens many opportunities for you.  The main important thing to note down from all the above investment is that you first study all essential information about the platform where you want to invest then make a decision accordingly.

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Deepika Gupta

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