Crypto Investing
29 Oct 2020

7 Easy Ways To Start Investing With Little Money

Nisha Ramesh

Investing isn’t an option; it is a mandate!

We have always heard our parents talk about savings and how important it is, but savings alone doesn’t help. 

If you only save money in a bank account and are not investing it, then, in fact, you are losing money.

Let me explain how:

India currently has an inflation rate of 7.34%, which means that the amount of money sitting in your bank account has lost this much of its worth.

So the right way to safeguard your money is to not only save it but also invest it wisely to protect its value and, in due course, see it grow.

Ways You Can Start Investing With Little Money

Many complain that they do not have a large sum of money to invest. But, the good news is you don’t need a large sum to start investing; here are some of the ways.

1. Try Cryptocurrencies

They are a form of decentralized digital asset built on blockchain technology that acts as a hedge against inflation and seems to yield impressive returns to the investors.

And like with every asset class, there are risks associated with crypto as well, which can be mitigated by thorough research and informed decisions.

You can start investing in cryptocurrencies with a minimum investment capital of ₹100 – ₹500 in India.

Cryptocurrencies generally yield higher returns compared to any other asset class. Provided, you invest in the right coins and use a user-friendly and secure platform like CoinSwitch Kuber.

CoinSwitch Kuber facilitates crypto purchase for as low as ₹100 and pools liquidity from top exchanges to offer its users the best rates for buying and selling crypto using INR.

Invest In Crypto With Just Rs.100

2. Check Out National Pension Scheme (NPS)

The Indian government regulates the National Pension Scheme to facilitate individuals between 18 and 60 to save up for retirement.

When you sign up for NPS, you are required to make a minimum contribution towards your pension account of ₹1000 in a financial year for a Tier I account throughout your working life. 

The subscriber can withdraw a lump sum of their corpus on retirement and use the rest to buy an annuity and secure a regular income post-retirement.

The interest generated from your NPS contribution can be around 12 – 14%. It is one of the safest investment options that invest individuals’ contributions to debt and equity instruments.

3. Make Recurring Deposits

Recurring Deposit is one of the most popular and low-risk investment options that provide complete flexibility to the user for the amount invested every month and the investment tenure.

One can choose to invest as low as ₹100 per month for a period ranging from 6 months to 10 years, whichever is fixed at the time of setting up an RD. 

The return on investment on an RD can vary from 3.5% – 5% annually, depending on your financial institution.

4. Bond With The Bonds

Bonds are a way through which organizations and government institutions raise funds. 

When individuals buy bonds, they lend money to organizations and pay a fixed sum periodically on the borrower’s principal amount.

Bond owners do not own a stake in the company; neither do they have a say in organizations’ decisions. Unlike shareholders, their returns are not based on the company’s performance.

The minimum amount required to start investing in bonds is ₹1000/-

Government bonds generally yield a return of 7-8% per annum and the risk involved is minimum as per the consensus.

5. Try Out Mutual Funds

In Mutual funds, an investing company acts as a money manager and pools money from several individual investors to buy shares and bonds. 

These companies then try to maximize capital gains on the investment by allocating money to promising securities.

This is how it works:

When you invest in Mutual funds, you do not directly invest in a company. Instead, you buy a portion of the mutual fund company’s portfolio. 

Mutual Funds give the security of shared risk and are less volatile than shares.

You can start investing in Mutual Funds for just ₹100 per month. They generate an average return of  ~7-12%, but it may vary depending on which funds you choose.

6. Penny Stocks 

First things first, Penny stocks trading invite many scams, but some stocks are genuine too, so consider this only at your risk and research.

Penny Stocks are stocks that are minimally priced and whose market capitalization is less than ₹5000 crores. They, too, like Equity stocks, are traded on NSE and BSE.

Since these shares are issued by small-cap companies with huge potential to grow, while the returns on these could be exponential, the risks are also crucial, given that they are illiquid and highly volatile.

Penny stocks in India are usually priced lower than ₹10, making it a super affordable investment option.

For instance:

Between April 1 and August 24, 2020, about 89% of penny stocks soared up to 1508%.

7. Gold ETF’s

Gold ETF (Exchange Traded Funds) is a commodity(gold)-based Mutual Fund that represents physical gold in paper form. 

It can be an excellent diversification plan to one’s portfolio, as it protects your funds from market fluctuations and helps you capitalize on situations where currency falls weak.

Gold ETFs have outperformed standard stocks in the last few years and is a wildly safe playground for those who count on precious metals and don’t want to own them physically.

You can start investing with just one gram of Gold ETF; the returns may vary depending on the fund you choose. 


There are countless instruments and ways to start investing, but you don’t have to do it all at once.

Pick a few instruments that fit your investment goals and risk appetite and start building them.

Once you have a substantial amount in low risk – low return medium, you can then expand your portfolio to other vehicles that are high risk and high return.

And my most important suggestion would always be to do your research and never blindly go by anybody’s advice.

[su_note] KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing. [/su_note]

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.


Nisha Ramesh

Content Writer

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