Can I invest 100 rupees in share market?
- Asked By
- Updated On:23-Feb-2022
- Replies:2
Short Answer
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.
Detailed Answer
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.
Is it possible to invest Rs. 100 in the Share Market?
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.
1. Buying Direct Shares
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.
2. Buying Equity Mutual Funds
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.
Investing in Share Market
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.
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Discussion (1)
You can definitely trade or invest Rs 100 in Indian stock markets. There are no monetary requirements to enter the stock market hence you can buy any share that is trading under Rs 100. Apart from direct stock investing/ trading, there are some indirect ways to own shares over Rs 100. This can be done through Mutual Funds.
To find good companies out of the thousand companies listen on the Indian stock exchange, you can filter stocks on the basis of certain parameters such as Market cap, Debt to Equity, Dividend payouts, Revenue and Profits growth, etc. You can easily use an online stock screener to find out these stocks.
Nifty and Sensex and two stock market index given to the top performing, financially established and stable companies where most of the individuals prefer investing.
Small case is an intermediatory platform that helps investors looking to make investments in a basket of stocks ranging through different portfolios quite simple and straightforward. You can choose from various stock portfolios and make necessary SIP's or one-time investments to hold them or sell them based on your preference.
Discount brokers have gained a lot of popularity in the past couple of years. Zerodha is currently India's largest and most trusted discount broker which is also the best option for beginners. It has all the necessary qualities required for a good broker like low commissions, low-maintenance charges, high-quality trading terminal, etc.
Zerodha Kite allows you to sell shares either at market order or by placing stop loss. The order will be executed at the best available price.
Every Equity Investor should maintain some part of their portfolio diversified into foreign companies. This can be achieved through Foreign brokers or Mutual Funds and ETFs that invest in abroad markets. Investing abroad has many benefits such as exposure to the top global companies like Facebook, Amazon, Ford, etc. The tax implications on investments made outside India are different as foreign Equity is taxed as Debt Mutual Funds
The best stocks for college students to invest in in India are those with strong fundamentals and high dividend yields, such as Reliance Ltd., ITC Ltd., and Infosys Ltd.
ETFs (Exchange Traded Funds) and Mutual Funds are similar investment vehicles that provide the investors various features. Both have their benefits and shortcomings. ETFs are a good option for passive investors who want to invest in a particular Index or Sector without much rebalancing. On the other hand, Mutual Funds are a better option for active investors who are more active with their investments. One can switch between funds according to their current strategies.
The courses by NSE Academy and few others rank as the best to learn about stock market in India. In addition to the stock market, other factors like the global market and investing in initial public offerings have also been covered in these courses.
Harshil Patel
Yes, you can. You can invest, but then don't expect any fancy returns. Instead, create some capital of 10,000 rupees or 20,000 rupees to have a handful of returns in the stock market.