I think investing is more of a time based game then the amount of money invested,I am not saying money invested does not matter It highly matters as 2% monthly return on RS.2000 invested is just 40 Rs. But that 2% on 20 lakhs is 40,000 and that is a really good amount of money,more than most people’s salary around us. So Yes money matters,But let’s assume you are a student or someone who can not manage a big sum of money to invest.So its best to just skip 1 pizza this weekend and start with your investing journey as a beginner with as low as 100Rs,As I have read that in a book or heard in a podcast that someone said “Just Take the Action and you will learn while doing it”
So, Today I will help you in investing that 100 Rs. Firstly to invest (you are below 18) you have 2 simple options:
Option A: Invest Using Your Mother’s/Parent’s AccountThis is one of the easiest and fastest just ask your parents the details use their parent’s Demat as well as bank details and start investing in the markets.Most youngsters and students do it and its completely normal
,just tell them that i am just investing Rs.100 just to see how the stock market works and to learn.Parents usually appreciate this more than you think. They feel proud that you’re trying to learn something early instead of wasting money and even if they don’t understand the market themselves, they will still support a small ₹100 experiment.Just make sure you maintain transparency so they don’t get scared that you’re doing something risky.
Option B: Open a Minor Demat Account
A “Minor Demat” means the Demat is in your name, but your mother/parent acts as the guardian.You can invest in mutual funds through this,But trading in stocks (buy/sell) is not allowed until you turn 18. The moment you will turn 18 the account will be converted into a full fledged major demat + Trading Account, and you will have full control.
Now if you want to start investing as a beginner completely inStock Market and don’t understand terms like Demat,SIP, ETFs etc.
consider reading this Blog – Stock Market Basics (your own Lemonade Stand Story). Now After this don’t just start picking random stocks (i regret doing it).See there is not any hard and fast rule of investing,But start with the Mutual funds and ETFs.I am not trying to portray that picking companies instead of funds will give you losses,Even i faced some losses early too,but in your case you have limited amount like 100-200 Rs You need to invest these with care without just gambling and one thing if you are think that putting money in stock markets will make you rich overnight or a week,then just come back to reality.Invest that money in Funds.
Now i believe there are 3 best ways to invest your first Rs 100
a) Mutual Fund SIPs (Beginner’s #1 Choice). b) Digital Gold/Silver (As you understand its usage and roles) c) ETFs
Now, How will that ₹100 Work for you?, Simply
Even that ₹100 can grow to a decent amount but only if you stay consistent. When you will invest every month, your money will not grow linearly, it will compound.That simply means the thing that your returns will also start earning returns over time.Example:if you invest ₹100 every month for 10 years, and assume an average return of 12% (just an example), it can grow to around ₹23,000+.You put in ₹12,000… the rest was growth, But here’s something MOST beginners in Stock Markets forget:
INFLATION.₹100 today and ₹100 after 10 years are not the same.Prices rise, purchasing power falls.So ₹100 SIP is not for the long-term — it’s just to build the habit.After some months, slowly increase it… ₹100 to ₹200 to ₹500 and keep on rising it.This is how real wealth is created.Consistency > income.If you can stay disciplined with ₹100, you’ll definitely stay disciplined with ₹1,000 and later even with ₹10,00,000.The amount may look small today, but the real power is in the habit.Your consistency beats your income.If you can stay disciplined with ₹100, you will stay disciplined with ₹1,000 and later ₹10,00,000.This is how wealth silently builds — one small monthly step at a time.
So just Start Today With ₹100 and keep on learning how it works,You will make some mistakes in the learning process but just keep on learning from them too as No one is perfect and Don’t worry much as Common Mistakes to Avoid Will be Covered int he Next one,Till then Level Up and do some masti yaar 🙂