-3 minutes read-
Start early and invest regularly.
No matter how small your amount of saving or investment may be, but you need to start as early as possible. This process will help you in the preparation of financial planning to reach your life’s goals.
The journey of thousand miles begins with a single step.
When I was in college , I used to seek ways to accumulate money and try to invest in various ways. Even though I could save Rs 500 a month, I would make sure to invest it regularly.
In this blog, I have noted down the top 5 investing options, with a saving of Rs 500 a month that gave a cushion to my future goals.
1. Start a Systematic Investment
The idea behind this category is to develop a habit of saving and investment. Systematic Investment Plan (SIP) is basically an investment in a mutual fund scheme.
However, there are certain facts that you must know before investing in a mutual fund.
There is a high probability your money will grow because these funds are managed by professional fund managers.
It can be started with as low as Rs 500/-. In case you wish to start it right away, you may go through the our detailed explanation on 2 Steps Checklist on starting Systematic Investment Plan (SIP)
One of the most important benefit of starting early is the power of compounding. You may read here to understand on how does the power of compounding works.
We have listed below few some mutual fund schemes on which you may research and invest.
- HDFC small cap fund
- DSP mid cap fund
- HDFC mid cap opportunities fund
- Aditya Birla Sun life Equity Fund
- ICICI Prudential Equity and Debt Fund
Note: None of the above-mentioned funds are suggested to be invested by us. They are mere examples for you for giving an idea of the various schemes available to invest.
2. Buy a Share of a Company
I know what you must be thinking, what will happen if I buy just one share of a company?
More than anything else, it will motivate you to follow and learn the stock markets. Once you have pooled in your money in something, it will drive you to learn more about the financial market.
Tracking news about markets and companies, understanding how they work is a must-have skill, if you want to make money from the markets. This in itself can be great use of 500 rupees.
3. Start a Recurring Deposit (RD) Account
In case you are able to save 500 rupees every month but you are not interested in stock markets. If you feel it’s too risky, you can start a recurring deposit account in a bank or post office. That way your money will grow and remain safe at the same time.
Almost all banks in India provide recurring deposit account services.
Instructions to open a recurring deposit account are mentioned on each bank’s websites. It’s easy and hassle-free investment account.
The interest rate varies between 6-8% which is again better than lying the funds ideal at home.
4. Invest in a Book
Well, reading is a great habit. Developing reading habit can be immensely beneficial going forward. You gain great knowledge, develop different perspectives about a lot of things, you become confident. Most successful people share this common trait of great reading habit.
Nothing can be a better investment than investing in yourself. So if you are not ready for the above options, you may always invest in reading new books.
Elon Musk, founder of SpaceX and Tesla used to be a voracious reader when he was a kid. He later on went on say in interviews that some books really inspired him early on to do what he is doing today.
5. Educate Yourself
Another way of investing is educating yourself by taking up small certification courses online.
Due to easy accessibility to the internet, nowadays there are lot of learning options online. You can use this money to buy a course and learn a new skill you are interested in it. It could be anything of your choice.
- The amount of money does not matter much, but starting early matters a lot.
- Starting SIP will you higher interest as compared to investment in RD’s.
- In case you are not ready for any investments, you can always enrich yourself with knowledge in terms of reading and taking up small online courses.