The
amazing beauty of investing in shares is that you can start with ridiculously
small amount that is not possible with other classes of assets like real estate
and gold. Let us list the benefits:
- The unit price or cost or sum
required is tiny.
- There is no minimum quantity to
be purchased (MOQ) stipulation (fractions are not allowed, of course). One unit or any multiple can be bought.
- The transaction costs like
taxes, brokerage, and annual maintenance charges are reasonable affordable.
- Investments are highly liquid.
In case of an emergency one may sell instantly and realize the money
within a week.
In
India shares of a good number of respectable companies are available for less
than Rs.35 ($0.50) apiece. There are two
candidates in our own educational ‘Portfolio 2K15’ itself that meet this
criterion:
 |
| Less than Rs.50 ($.0.50) Stocks |
If
we were to think about mutual funds or SIPs one can invest as low as Rs.50. Please also read 'What is the Minimum SIP Subscription Amount and Best SIP?'.
All in all in my opinion one should be
able to complete all the necessary things required like opening a trading account,
opening a demat) account (account for
holding stocks in a dematerialized form) and linking an already existing
account with the trading/ demat account for receiving dividends, within Rs.500
to 1000. If you do not have a bank account, you may require another Rs.1000 to
5000 as a minimum deposit or balance as per bank’s norms.
However, for the investments to be
meaningful and be able to give you ‘Financial Freedom’ you must consider
investing larger amounts, every month, for about forty years. Following picture
depicts the net wealth you may expect to accumulate after 40 years when you
invest various amounts:
 |
| Comparative Investment Results for Various Monthly Investment Sums |
In
conclusion one can invest in shares for a sum as low as Rs.28 and in SIP Rs.50
and slowly and gradually build a formidable wealth from such humble beginnings.
