How to start investing with 100 dollars in Canada?
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- Updated On:29-Nov-2022
- Replies:1
Short Answer
There are many ways in which you can invest $100 such as robo advisor platform, fractional shares, ETFs, managed funds, crypto currency, etc. Let's discover and discuss different ways of investing an amount of 100 CAD in Canada.
Detailed Answer
What to do with $100 in Canada?
In Canada, or in any other country, you can do three things for $100. You can spend it or you can keep it as cash or you can invest it.
There is a saying – Little drops make a mighty ocean. Similarly, if you start investing $100, you can end up with a lot of money.
Imagine you invest $100 in an asset earning 6% compounded annually every month for 10 years, you accumulate $15,256. If you invest for 20 years, $39,945 for 30 years, $80,159, and it goes on.
How to start investing 100 dollars in Canada?
There are many ways you can invest your $100 not only in Canada, but in any other country as well.
- Open Investment Account:
If you are a novice at investing, you can commence a robo-advisor account. Here you are supposed to answer a questionnaire and based on your responses the robo will figure out your risk tolerance. Your money will then get invested in an investment option that is in line with your risk profile.
- Get Fractional Shares
You can invest in fractional shares. A fractional share is a portion or a fraction of an individual share. If your desired share price is $1,000, but if you have only $100. You can invest in one-tenth of the share. Or you can even buy 10 different fractional shares.
- High-interest Bank Account
You can open a high-earning savings account. EQ bank offers 3%, Saven Financial 3.30%, Scotiabank offers 4.25%, Tangerine offers a promotional rate of 3% etc.,
- Put money in Investment Plan
You can contribute the sum to an investment plan. It could be a registered investment plan like a tax-free savings account, a registered retirement savings plan, registered educational savings plan or even a non-registered investment plan.
- Mutual Funds or ETFs:
You can invest directly in an Exchange-traded Fund or a Mutual Fund as per your financial goals.
- Invest in Cryptocurrency
You may invest in cryptocurrencies like bitcoin or Ethereum. Crypto currencies are in vogue now. They are basically digital currency that is coded based on block chain technology. It is cheap and can be transferred quickly.
Important: Some of the assets stated above are highly volatile. So, be cautious of the risks involved before investing any sum of money into it. Take professional advice before making small or big investments.
Investing $100 in Canada
In this article, we have listed the financial instruments that you can buy for $100. You can also choose to pay off your credit card or debt, which will indirectly boost your net worth.
Finally, You can also invest in yourself by joining courses that will improve your skills. This will in turn earn you money at a later period. Where have you invested a sum of 100 CAD in Canada? Where else can you invest 100 dollars in Canada? Do list your ideas.
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Discussion (0)
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