6 Easy Ways to Start Investing with as Little as Rs. 500 | ABSLI (2024)

FAQs

6 Easy Ways to Start Investing with as Little as Rs. 500 | ABSLI? ›

You can start investing $500 by selecting an investment account, deciding whether you want help and diversifying with ETFs. In general, you should plan to stay invested for at least five years.

You can start investing $500 by selecting an investment account, deciding whether you want help and diversifying with ETFs. In general, you should plan to stay invested for at least five years.

I have found no better way of doing this than investing in high-quality stocks that pay high dividends. I then reinvest those dividends back into the stocks that paid them – 'dividend' compounding', as it's known. This is the same process as leaving interest paid in a bank account to grow over time.

The classic approach to doubling your money is investing in a diversified portfolio of stocks and bonds, which is likely the best option for most investors.

To make $1,000 per month on T-bills, you would need to invest $240,000 at a 5% rate. This is a solid return — and probably one of the safest investments available today. But do you have $240,000 sitting around? That's the hard part.

Cash. A cash bank deposit is the simplest, most easily understandable investment asset—and the safest. It not only gives investors precise knowledge of the interest that they'll earn but also guarantees that they'll get their capital back.

What is the least risky thing to invest in? ›

But generally, cash and government bonds—particularly U.S. Treasury securities—are often considered among the safest investment options available. This is because there is minimal risk of loss. That said, it's important to note that no investment is entirely risk-free.

How much should you save each month? For many people, the 50/30/20 rule is a great way to split up monthly income. This budgeting rule states that you should allocate 50 percent of your monthly income for essentials (such as housing, groceries and gas), 30 percent for wants and 20 percent for savings.

For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.

As a general rule of thumb, you want to aim to invest a total of 10% to 15% of your income each year for retirement. That probably sounds unrealistic now, but you can start small and work your way up to it over time. (Calculate a more specific retirement goal with our retirement calculator.)