A widespread misconception about investing is that you need a large bank account to get started. In truth, developing a robust portfolio might begin with a few thousand—or even a few hundred—rupees.
Let us explore the numerous minor investment plans for those investors who want to secure their money while also looking for investment options that will help them earn magnificent returns in this post.
1. Treasury bills, notes, bonds
Individuals seeking to purchase a short-term treasury bill must invest a minimum of Rs. 25,000, according to RBI regulations. Furthermore, any further contribution must be in multiples of Rs. 25,000.
A Treasury bill is a promissory note with a future repayment guarantee issued by the Government of India. Funds gathered through such measures are often utilized to cover the government’s short-term needs, hence reducing a country’s overall fiscal imbalance.
They are typically short-term borrowing instruments with a maximum tenure of 364 days and zero coupons (interest). They are issued at a discount to the nominal value of government security (G-sec) as announced.
Source: NSEindia.com
2. Post Office Monthly Income Scheme
The Indian Postal Service established the post office monthly income scheme, which is one of the best little investment options for any investor. The investor must set aside a certain amount each month in this plan, after which the interest will be added to the investment at the corresponding rate and paid to the depositor each month. The government sets interest rates, which are subject to quarterly revisions depending on the yields on government bonds of the same period.
3. National Savings Certificate
The National Savings Certificate is a fixed-income investment scheme that can be opened at any Indian post office. It is essentially a savings bond, which is a government effort in India that encourages small investors to invest their money and save on income taxes. This structure, like post office fixed deposits and public provident fund, is a safe and generally secure thing. You can get it from the nearest post office in your name, for the minor, or with any other adult as common help. They stick to a five-year maturity time frame. There is no upper limit on getting NSCs; however, only investments up to Rs.1.5 lakh are eligible for a tax deduction under Section 80C of the Income Tax Act. These certificates also receive a set interest rate, which is now 6.8 percent per year.
4. Purchase ETFs
Another option for a low-cost start is an exchange-traded fund (ETF), the majority of which have no minimum investment requirement. ETFs, unlike most mutual funds, often have a passive management structure, which means lower ongoing costs. However, among other disadvantages of ETFs, you must pay transaction fees. Consider utilising a bargain broker that does not charge a commission—or plan to invest less frequently, perhaps investing larger amounts quarterly rather than making modest monthly purchases—to reduce these charges.
5. Peer to Peer
Investing in the stock market can be a daunting task, especially for those who are on a budget. With Monexo Grow, individuals can now invest in risk-assessed, personal loans from creditworthy salaried borrowers with as little as Rs 5,000.
The platform allows investors to diversify their investments by investing regularly through systematic investment plans (SIPs). This provides them with the opportunity to grow their money over time without having to worry about volatile markets. Moreover, Monexo Grow also provides investors with the possibility of investing in peer to peer lending and other financial services at an affordable cost.
Conclusion
You can also go online for information on small investment plans. In these difficult times, investing is critical, because no one can predict the future, and hardship can strike at any time. As a result, do not wait for the perfect moment or time. Make your investment decisions quickly but not hastily. Give it some thought, and then choose a small investment plan that will not put a strain on your finances.
Monexo Grow is an innovative peer-to-peer investment platform that not only allows investors to start small but also provides them with the chance to build up their investments gradually over time. With SIPs starting at Rs. 5,000 and the ability to build up your investment over time, Monexo Grow makes it easy for anyone to get started investing and grow their money responsibly.
