Investment with little money

Other investment ideas with little money are activities in the stock market and capital market. You may not believe it, but the minimum investment amount in the stock market is only 500 thousand Tomans. That is, with only 500 thousand tomans, you can become a shareholder of a joint-stock company and by participating in the meetings of the ordinary general assembly, you can be present in the decisions related to that company and use your right to vote. You should pay attention to this point

Investing in the stock market is a complex and risky process that requires training and knowledge. Here are some of the main things to invest in the stock market:

1. Getting to know the listed companies: Before investing in the stock market, you should familiarize yourself with the listed companies and their performance. For this purpose, you can check the financial information of the companies and pay attention to the news and reports related to them.

2. Investigating technical and fundamental analysis: Technical and fundamental analysis are two important methods for analyzing companies and the stock market. Technical analysis, based on price charts and trading volume, is an analysis that is used to predict stock prices. Fundamental analysis, on the other hand, is an analysis used to estimate a company’s value based on information about company performance, profitability, market growth, and other factors related to the company.

3. Risk management: Investing in the stock market always involves risks, so you must be able to manage the risks associated with your investment. For this purpose, you can use different methods such as diversifying the stock portfolio, limiting the amount of investment in a particular company and using derivative instruments such as futures and options.

◊  Also read this article: Free stock market training from zero to one hundred

Investment funds are another way of investing with little money. Fixed income funds carry less risk and equity funds carry more risk. You can choose the right fund by comparing investment funds.

In the following, we introduce some safe investment funds with higher interest than bank deposits.

Kian Fixed Income Investment Fund is suitable for risk-averse people and acts like a short-term bank deposit. The yield of this fund in 2019 was equal to 33.5%.

Kian’s Voice Fund is a stock fund that is considered a good alternative to buying stocks directly. This fund has had a return of more than 3000% since its inception.

Kian Stock Song Fund is another stock fund that has yielded 650% return since its inception.

Another way to invest with little money is buying and selling gold and coins. Gold has always been one of the popular investment options among different strata of people and carries little risk. But since the price of gold is influenced by the global market, always monitor the global news affecting the gold market when buying and selling gold and coins. The Kian Gold Investment Fund is also a suitable alternative for buying physical gold, which has had a return of more than 460% since its establishment.

If you still ask yourself, where should I invest with little money?, we must say that buying domestic and foreign used cars and selling them at a higher price in the future, polishing and repairing cars, and renting classic cars are among the methods of making profit from the car market. .

Although buying property is not a low-cost way of investing, but using methods, you can enter this field with little money. Among the methods of investing with little money in the field of real estate, buying land, pre-purchasing real estate, buying real estate from cooperatives and paying its price in installments, etc. Is.

One of the other investment ideas with little money is to work in the global Forex market, which is currently known as the largest financial market in the world. But since there is no limit to the range of fluctuation in this market, one may suffer huge losses in case of improper performance. For this reason, working in forex requires the acquisition of sufficient specialized knowledge in this field.

Digital currency or cryptocurrency in the form of CryptoCurrency or encrypted money is decentralized and built on the blockchain platform. The purpose of designing cryptocurrencies is to increase security and prevent currency fraud and eliminate middlemen between buyers and sellers. But the activity in this field carries a lot of risk for investors in this field.

◊  Also read this article: Free digital currency training (from zero to one hundred)

Another way to invest with little money is to buy government bonds. These papers include debt papers and Islamic treasury documents. Islamic treasury bonds are sold for an amount less than their nominal value, and at the end of the contract, an amount equal to the nominal value of these bonds is paid to their owners. In the case of debt securities, the government undertakes to pay an amount as interest to the buyers at a certain time. Buying bonds is a low-risk method that brings little profit.

Buying and selling dollars is another investment method with little money that has its own fans. The foreign exchange market is very risky and one of its risks is the increase in purchase requests during seasonal trips and pilgrimages. Also, the presence of brokers is very effective on the fluctuations of this market. But by investing with a long-term view, the risk of the currency market is reduced.

Although it is not possible to start a big business with little capital, but to invest little money in the field of business, you can start a small business and gradually develop it. In this way, your risk is also reduced. Among the small businesses that can be started with low capital, home businesses can be mentioned.

At the beginning of this article, we stated that the purpose of investment is one of its most important pillars. Depending on whether your investment goal is to make a profit or preserve assets or both, and according to your risk tolerance and time horizon, you will have several options for investing with little money.

You can invest 10 million Tomans to start a small home business or to enter the stock market. But in both cases, you should first do the necessary studies and estimates.

If you have a budget of 10 to 20 million tomans, you can invest in home business or stock market as before. Of course, you will be more profitable in this case.

With a budget of 20 to 50 million Tomans, you can enter the gold and coin market, also, options for home business and activity in the stock market are still included in our proposed package.

With a capital of 50 to 100 million Tomans, you can enter the stock market, gold market, coin or digital currency market. If you are thinking of starting your own business with this money, you can change it from home to a small workshop and develop it.

If you have a high risk tolerance, you can invest your money in the field of digital currencies, buying and selling currency, as well as operating in the stock market and stock funds. But if you are a cautious person with low risk tolerance, you can use fixed income funds, bank deposits and property purchase for investment.

The issue of investing with little money is mainly raised for the middle or poor class of society. But what challenges do these people face that many times they cannot invest with their own money?

Many people consider small amounts insignificant and do not draw any plan for investing with little money. This way of thinking leads to the emergence of emotional and irrational behaviors when low capital enters a person’s life.

People belonging to the poor strata of the society mostly owe more than they have assets. If these people get a little capital, they will mainly spend that money on their previous debts and will not be able to invest or save.

Unforeseen costs are imposed on people when one of the household appliances, such as a refrigerator or TV, breaks down. In this case, a person has to spend his entire savings to replace such not so cheap devices.

Another challenge of investing with little money is that if a low-income person earns capital, he prefers to buy a useful and valuable product such as a mobile phone.

Another obstacle to investing with little money is that financial institutions have a discriminatory treatment with little capital. For example, bank interest is high for small loans, and overall, the “cost of capital” is higher for low-income people than for the rich.

Investments less than three months are considered short-term, between three months and one year medium-term, and investments more than one year are considered long-term. Of course, there are different definitions for investment time frame. But the important thing is to determine your time strategy before investing.

To stay safe from market fluctuations and possible risks, we recommend that you choose a long-term strategy for your investment. But if you can’t hold onto your money for a long time, take advantage of short-term investments.

Investing with little money has requirements, which we will discuss below:

One of the essentials of successful investing with little money is to acquire enough knowledge and skills to be present in the market you want.

Patience and a long-term view of investment are other requirements for successful investment with little money. Long-term strategy reduces investment risk.

Before investing in any market, evaluate the risk level of that market to adapt your risk tolerance to it and enter that market if you wish.

Check all the financial markets and analyze their performance from the past to today and see how much their returns have been. Then, enter your target market.

Liquidity is one of the most important requirements of investing with little money. For example, after selling shares in the stock exchange, the money is deposited into the person’s account up to two working days later, and in this way, the stock market has high liquidity.

With a small capital, you can invest in banks, investment funds, gold, coins, stock exchanges, digital currencies and forex. The information about the yield and the latest transactions of the funds can be obtained from here.

Regarding the best solution for investing with little money, it is not possible to apply the same prescription to all people. But each person can choose the best solution by examining the investment pillars and evaluating his own conditions.

The level of risk tolerance of the investor, the purpose of the investment, the interest rate, the amount of liquidity, the financial conditions and the age of the investor, sufficient knowledge in the field of investment in the target market, and also, time are the most important elements of investment.

You can invest your money, however little. If you have a small home business, this small investment will be effective to boost your small business. Also, you can invest this money in financial markets. But since the amount of this money is small, to increase its profitability, you can enter high-yield markets that require high risk, such as the stock market and digital currencies.

Investing with little money is very challenging and for many people, it seems impossible. But knowing the pillars of investment, target markets, the risk of financial markets and the returns of each market and many other things, helps the investor to choose the best platform. Also, a person may invest his funds in several financial markets in parallel or spend it on developing his business.