Normally when any individual think about investing money, he thinks investing requires large money contribution and one can’t start investing with less money. The truth is one can start investing for less than $100. It’s just that you have to carefully choose the investment option so that you don’t end up paying large amount of fees. There are quality investment options out there that cost very little, have no minimum investment requirements, and come with all fees upfront. That means you can invest for $100 quickly and easily, so there’s no excuse not to put your money to work for you right now.
Below are some of the investment options you can use to start investing money for less than $100 :
Low-Cost Index Funds :
Low cost Index funds are a good investment options for small budget investment in world-class companies and fast growing sectors. Key benefits of investing money in index funds are extremely low fees and a lack of hidden fees. Vanguard funds are famous as the go-to fund for people who want to invest for low cost. Most active funds are going to cost you between 1 to 2.5% a year, but a low-cost index like Vanguard means you’ll often pay less than 0.2% a year in fees. Also, Vanguard doesn’t charge you fees related to marketing, brokerage, account operating and transaction charges for long term investors. That means you have a quality investment option to start investing for less than $100.
Invest in ETF:
Exchange Traded Funds, also known as ETF, offer a low-cost way to invest and operate much like purchasing a stock. Also, they just mimic the performance of S&P 500 index. Thus, one can purchase a whole pool of stocks for the cost of only one. It’s also an excellent choice for those whose employers don’t offer 401(k) plans or students who want to start investing early.
401(K) plans are good investment for making small investments or to start investing money for less than $100. However, the 401(K) investment plans has to be carefully analyze for the fees, sales charges and maintenance costs associated with the options your employer offers. Otherwise, it can result in more than $100 in fees per year, especially if one has a large investment amount. Thus, should select a fund that has a minimum fees and a historically strong track record.
From the above investing tips, it’s evident that one can start investing for less than $100 while keeping fees at the minimum. Thus, one can create a large pool of investment over a period of life by investing small amount of money.