Theoretically, an investment in a share market appears so overwhelming that even the littlest beginner seems to feel shy from it. All the aspiring investors think that they will be doing something where only large-scale money will invest in the share market. What they forget is the fact that just with some penny, one may start investing in the share market.
This blog is about whether one can invest ₹10 in the share market of India and what all options are there for small investors.
_Is it Possible to Invest ₹10 in the Share Market?_
Technically, yes, one can invest ₹10 in the share market, but some limitations and considerations do come with this.
In India, the minimum investment in shares is dictated by the brokerage firm, that can range from buying share with a minimum amount of ₹100 or ₹500 to allowing investments as low as ₹10. Investing such an amount is certainly not practical or cost-effective, but there's a reason for this:
Brokerage charges: Brokerage houses charge a commission on buying and selling shares. It can be ₹10 to ₹100 or even more per trade depending upon the brokerage house and the type of shares being sold. If you invest ₹10, then the brokerage charge will eat away into your investment, and at the end, you will have very little or nothing in return.
Zero Brokerage Discount Brokers
Some of the discount brokers of India also provide zero brokerage charges to trade and invest in shares. The most famous ones are:
Zerodha: One of the most well-known discount brokers in India is Zerodha; this one provides zero brokerage charges for trading and share investment.
Upstox: Other than Zerodha, Upstox is another well-known discount broker in India that offers zero brokerage charges for trading and share investment.
5Paisa: 5Paisa is a discount broker that provides zero brokerage for trading and investing in shares.
Groww: Groww is one of the most popular discount brokers in India that provides zero brokerage for trading and investing in shares.
_Options for Small Investors_
Though it is not possible to invest ₹10 in the share market, there are options available for small investors:
Mutual Funds: Mutual funds help you invest in a small amount of money in shares that are diversified. The minimum investment in mutual funds may be as low as ₹100 or ₹500.
Systematic Investment Plans (SIPs): SIPs enable investors to save a pre-fixed sum of money at periodic intervals for investment in a mutual fund or exchange-traded fund (ETF). The minimum investment allowed through SIPs can be as low as ₹100 or ₹500.
Stock Exchange-Traded Funds (ETFs): ETFs are traded on the stock exchange like shares. You can invest in a diversified portfolio of shares with relatively small amounts of money.
Conclusion
Technically, it can invest in the share market with ₹10. But practically, it is not cost-effective. Zero brokerage discount brokers and other investment options have made it easier for small investors to involve in the share market.
Before investing in the share market, the first thing to do is-
Research and understand the investment options available
Set clear financial goals and risk tolerance
- Look for a financial advisor or broker, if necessary
By investing responsibly and wisely, you can maximize your investments with maximum gains to achieve all your financial objectives.
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