5 Smart Ways to Start Investing with Just ₹500
Think you need thousands of rupees to start investing? Think again. The truth is, you can begin your investment journey with as little as ₹500—yep, that’s less than what you might spend on a weekend meal or a few online impulse buys.
So if you’ve been waiting for the “perfect time” or a fatter paycheck, this is your sign to start now. Here are 5 smart, simple, and beginner-friendly ways to invest with just ₹500.
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1. Start a SIP in a Mutual Fund
SIP stands for Systematic Investment Plan—and it's one of the easiest ways to dip your toes into the world of investing.
How it works: You invest a small fixed amount (like ₹500) every month into a mutual fund.
Why it’s smart: Your money gets professionally managed and is diversified across multiple stocks or bonds.
Where to start: Use platforms like Zerodha, Groww, Paytm Money, or Kuvera.
Pro Tip: Look for index funds or low-cost ELSS funds if you're investing for tax-saving too.
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2. Buy a Fractional Share (Yes, It's Possible!)
In India, we can’t technically buy “fractional shares” like in the US, but some platforms let you start small by pooling investments.
Instead of buying one expensive stock like Infosys or TCS, you can:
Invest via smallcases (theme-based stock baskets)
Try stock market simulators or mutual fund-based equity exposure
Why it’s smart: You’re investing in the stock market without breaking the bank.
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3. Invest in Digital Gold
Not ready for stocks or funds? Gold feels safer? Try digital gold.
Minimum investment: As low as ₹1
Platforms: PhonePe, Paytm, Groww, or Amazon Pay
Why it’s smart: No need to worry about purity, lockers, or making a full jewelry purchase.
Heads up: Treat this as a short-to-medium-term investment, not a long-term wealth builder.
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4. Use ₹500 to Learn a Money-Making Skill
Wait—this one’s different.
Instead of investing in the market, why not invest in yourself?
Buy a course on copywriting, Canva, freelancing, or crypto basics
Sign up for a workshop or masterclass
Read an eBook on personal finance or passive income
Why it’s smart: The ROI (Return on Investment) on new skills can be huge—especially if you can turn that knowledge into a side hustle or better job.
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5. Try a Recurring Deposit (RD)
Still not ready for market risks? Go the safe route with an RD at your bank or post office.
How it works: Deposit ₹500 monthly for a fixed period (say 1 or 2 years)
Returns: Guaranteed, though lower than stocks/funds (around 5–7%)
Best for: Risk-averse beginners or short-term savers
Bonus tip: Set up auto-debit so you don’t skip a month!
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Quick Mindset Check:
> It’s not about how much you invest—it’s about how consistently you do it.
₹500 a month might not feel like a lot, but over 5 years, that adds up to ₹30,000 (
without even counting returns). Add compounding to the mix, and you’re seriously building wealth.
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