Yes, one can invest in the share market with 100 rupees. So, you can start investing with as little as Rs.100 only. Isn't that interesting? There is no reason as to why one can’t invest in the stock market for 100 rupees.
The avenues in which one can invest such a small amount of money are limited. These include intraday trading, mutual funds, penny stocks, and others.
But don’t expect anything special to happen until and unless you invest more. The more you invest, the more you can gain/loss from your investment. So don’t expect anything special and to answer your question, yes, you can invest in the stock market for 100 rupees.
A one-word answer to that question is Yes. You can easily start investing with Rs. 100 in India. To undertake this you shall need an active Demat and Trading account. This is necessary to purchase and hold your shares.
As you might already know, you will have to purchase a minimum of 1 share in the Indian share market. Therefore, if you are starting with a capital of Rs 100, your options are limited to the companies which are trading below 100.
However, there are multiple ways to go about investing, when you are trying to invest Rs. 100 in the stock market. Let us go through some of the possible options.
The most common and simple way to invest Rs. 100 is to go ahead and purchase the shares of a particular company listed on the stock exchanges. The only drawback to this is, you cannot acquire stocks that are trading above Rs. 100. Therefore, you will have to look for those stocks which are priced below Rs. 100. For example, if you want to own a stock of Reliance Industries or TCS. You cannot do so because the prices of these stocks are well above Rs. 100. But there is another way in which you can obtain exposure to these stocks. Learn how you can do that in the following part.
Buying individual stocks is an effective option, but there are certain limitations involved in this method. Good companies often trade extensively above the Rs 100 mark, therefore you would be unable to purchase them or add them to your portfolio if you have a capital of Rs. 100. But there is a way in which you can gain exposure to these companies for even Rs 100. You can do this by investing in equity mutual funds or index funds. There are numerous equity mutual funds, which typically consist of Large Cap, Mid Cap, or Small Cap Stocks, that are priced above Rs 100. The added bonus to these mutual funds is, the minimum investment amount is often low, at Rs 100. Hence, by purchasing mutual funds, you can indirectly buy the companies that are trading above Rs 1000 or 2000 with even a small capital of Rs 100.
To conclude, you can definitely purchase any stock in the Indian share market with a capital of just Rs. 100. The only limitation is, you will have to carefully select companies that are trading below Rs. 100. But if you want to gain exposure in the stocks which are priced over Rs. 100, then you can invest in equity mutual funds with Rs. 100. By purchasing Mutual Funds, you will be able to get a fractional ownership in multiple companies which are trading over Rs. 100.
So, what are you thinking? Any plans to invest a small amount of money in the share market? Do share your views.