Can I invest 100 rs in shares:
Yes, you can invest 100 rupees in shares all right but first you need to find out how, where and what it entails. Although 100 is not a huge sum, with the advent of modern platforms to invest and systems to buy a fraction of a stock, small investors are now able to start with a small capital base. Let us take a full-fledged dive into the concept so that you can know just how it works and whether it suits you.
1. Understanding the Basics of Shares
Shares are the ownership in a company. You have a small share in that company when you purchase a share, which implies:
There is a possibility that the company will expand and make a profit, and your shares will increase in value.
There are companies that pay dividends, which are some of the profits distributed to shareholders.
To protect the investor, SEBI (Securities and Exchange Board of India) regulates such platforms.
In India, the stock is traded mostly in two large stock exchanges:
- BSE (Bombay Stock Exchange)
- NSE (National Stock Exchange)
2. Can You Really Start with ₹100?
The answer then would have been No - most brokers would have ensured that the minimum requirement was extremely high and the price of a share might be 1,000 or more. Today, the story is different:
Easy to use low-cost brokers such as Zerodha, Upstox, Groww, Paytm Money and Angel One will allow you to begin with very small sums.
You can purchase shares in a company that has price less than 100 per share.
Example: Penny stock, small-cap companies or some public sector companies.
You can buy fractional units of ETFs or mutual funds based on shares i.e. your 100 rupees are combined with others in order to purchase a part of a bigger asset.
3. Ways to Invest ₹100 in Shares
A. Direct Stock Purchase
Filter companies having a share price of less than 100.
Live data: Create an example to evaluate prices as time passes (the prices get updated).
South Indian Bank (~₹25)
NHPC (~₹88)
Indian Railway Finance Corporation (~ 95)
You may purchase 1 or more shares according to your budget.
Pros:
Actual ownership of a company.
Probably increased returns in case the company increases.
Cons:
More risk when the firm underperforms.
Small investment implies small returns in the beginning.
B. Exchange Traded Funds (ETFs)
ETFs resemble stock baskets which track an index (e.g., Nifty 50 ETF).
Most of ETFs cost approximately 50 -100.
You can buy a piece of the best Indian companies with 100 rupees.
Pros:
Diversification - your 100 rupees are divided into several companies.
Less risky as compared to single stock investment.
Cons:
Less growth than choosing a winning stock.
C. Mutual funds through SIP (Systematic investment Plan)
It only takes 100 per month to begin a mutual fund SIP.
The fund puts money in various shares and bonds among other assets.
It is not so much an investment in riches as in education.
Pros:
Professional management.
Small cap diversification.
Cons:
Market trends are associated with returns.
There are management fees (albeit minor).
F. Fractional Shares in Stocks in the USA.
You can invest in fractions of US stocks (e.g. Amazon, Google) 100 rupees through sites such as INDmoney, Vested, or Groww.
Every rupee 100 in India could cost you only a few cents in US dollars, but it will enable you to trade in world markets.
Pros:
Connection to the best companies in the world.
Global diversification is made possible by fractional ownership.
Cons:
Currency conversion fee.
International market risk.
4. Some of the things to remember when you start with ₹100.
A. Brokerage & Charges
Although you pay 100, brokers can take trading fees (Rs. 0-20 per order by discount brokers).
This is because on very small trades, the fees might cannibalize profits.
B. Liquidity
Shares of large companies are easily sold at any point of time.
Low-priced shares or penny stocks can have less buyers-so they are difficult to sell fast.
C. Risk vs. Reward
The 100 in a share that increases by 50 percent becomes 150 - a 50 profit.
That is a high percentage, but minute in rupee terms.
Start with 100 -500 to know how to place the orders, track of the prices and read the company reports.
Full-digital KYC (PAN card, Aadhaar, bank details).
You can type in the name of the stock and order the quantity (1 or more) and order type (market or limit) and buy.
When you are sure, make incremental investments.
5. How to Invest 100 rupees in Shares.
Open a Demat & Trading Account
Select a broker such as Zerodha, Groww, Upstox, Angel One.
Get company news and trends.
Deposit Funds
Deposit 100 or above through Upi/Net banking in your trading account.
Research Stocks or ETFs
Identify some of the powerhouse companies that are trading at low share prices.
Free options are Moneycontrol, NSE India or Screener.in.
Place Your Order
Go ahead and assume that it is your first move into the investment scene.
Track & Learn
Follow the day-to-day movements in price.
Be aware of what is occurring in the company.
6. Benefits of Starting with ₹100
Low Exposure to Loss- Your stock will go to zero, but you will lose very little.
Practical Education — You learn how to invest without losing lots of money.
Habit Building — It promotes the need to invest on a regular basis.
Scalability — The same information is applicable when investing in 100 or 1,00,000.
7. Realistic Expectations
When you invest 100 in stock that yields at 10 percent a year, you will have 110 100 of your money - just 10 profit.
Small investments won’t get you rich overnight but it will experience so that when you invest more in future you will be sure that it will not be wasted.
8. Example Scenario
Suppose you put money into a company with a price of 20/share:
You buy 5 shares.
In more than 1 year, the stock increases to 25/share.
Your holding is now worth ₹125.
Profit: ₹25 (25% gain).
But consider 100 percent profit on 10 000 rupees - his profit is 2500. This explains why to learn it is best to start small, and to become wealthy must start big.
Final Thoughts
Yes, you can spend 100 rupees on shares today because of online brokers, cheap platforms, ETFs, SIPs. In absolute terms, your returns will be little; however, the knowledge, confidence, and understanding of the market you will glean will be more priceless. You can assume that it is your first investment in the world.
