Beginner's Guide to Micro Investing: How to Choose the Right App for You

Level: Beginner
Mission: To choose the right micro investing app for you
Team: You and Us!
Toolkit: Technology, Information, and Micro Investing

Level Begins in 3, 2, 1…

You’re fresh out of college and just got your first salary check. Congratulations! Now what?

Well, now, you have a very important task ahead of you – financial management.

This means you have to know how much you’re earning, how much you are spending, how much you are saving, and how much you are investing.

Our guess is you’ll figure out how much you make and spend (in a month, for instance) quite easily.

We’ll also leave the saving bit for you to figure out (a little bit out of every salary check!).

But what we are primarily interested in helping you with today is the ‘investing’ bit, because that is going to be one of the most important elements of your financial portfolio. When you are just starting out, it is safe to assume that –

  • Your investment budget is not huge – you probably only have small amounts of money left to invest after spending and saving.
  • You are drowning in options and don’t know where exactly to start – all you know is you want to start!

If these assumptions do in fact apply to you, then micro investing platforms is the perfect point for you to start your investing journey. Micro investing app India allows you to invest small amounts of money regularly, rather than making huge lump sum investments all in one go. Sounds simple enough, right? But, where can you go to start micro investing? Much like for most things today – there’s an app for that.

Okay, there are a lot of apps for that. And this is where our mission kicks in – we’re going to help you with a checklist that can help you figure out exactly which micro investing apps in india is right for you.

These are some basic parameters that you need to consider before selecting an app and starting micro investing through it. The idea of this checklist is to help you identify the micro investing app that is perfect for your individual financial goals. Here’s how you accomplish this mission –

Find a well-reputed app – As an investor, you’d want accountability from any app that you choose to use for kick-starting your investment journey.

This is where the ‘Information’ tool from your toolkit will come in handy. Find out as much information as possible about any micro investing app that catches your attention.

Find out how many users it has, who owns the company, and what customers are saying about it. This will give you a fair idea of whether or not an app is popular in the market or not.

Find a secure app – This one is important considering your hard-earned money is on the line! You can only rely on micro investing apps that have been authenticated by SEBI or the RBI.

So keep a look out for these certifications and registrations because they assure that these micro investing apps are maintaining necessary standards of safety and security. Deciml, for instance, is regulated by SEBI – so you can be sure that the app had to meet certain requirements to get that certification, and it offers more legitimacy to any micro investing app.

Find out about the fees – A lot of micro investing apps require users to pay some sort of subscription fee or might have charges associated with investing.

You need to know upfront in case any such charges are applicable to the micro investing app that you have picked, so you can account for any such fees in your investment budget itself! Of course, there are also micro investing apps like Deciml out there which do not require any subscription fees and have no charges on the investments made by users. 🙂

Find an app that is user-friendly – This of course means choosing a micro investing app that has an easy interface and is not too cluttered! But it also means identifying which of these micro investing apps offer easy KYC solutions, and which ones can allow you to invest through automated payments.

The Deciml App allows users to set up auto-pay for their Round-Up investing (a form of spare-change investing) and Daily Deposits (investing fixed amounts every day) as well.

This means that a simple onboarding should be enough for you to start micro investing, and the app should be able to enable regular investments without requiring any manual assistance from you all the time!

Find an app that offers support and information – Even the most seasoned investors will often require information about the world of investing. Whether this is in the form of an advisor, or independent research – it is important to stay up-to-date with the latest developments in finance.

As beginners, however, you might need to dig deeper and even need insights into some of the fundamentals of investing (no shame in that!). So any micro investing app you choose should be able to offer you that support.

Deciml, for instance, has a feature called Wise Up that is a trove of insights for investors, in addition to regular customer support!

Find out the minimum required investment – How micro can micro investing be exactly? This is an important question because it is pertinent to your budgeting. Some platforms allow you to invest a minimum of ₹500 per month through SIPS, and other micro investing apps like Deciml will let you invest as little as ₹1 through its Round-Up feature.

For example, assume your round-up limit with Deciml is ₹10. Then if you are buying a coffee worth ₹146, Deciml is investing ₹4 on your behalf. So for every digital transaction, a small (but significant!) amount will get invested through a micro investing app like Deciml.

Understanding the minimum amount of investment allowed will help you out with your financial plans, especially when you are starting out with limited financial resources.

And there you have it. Each point in this checklist, when checked off, will result in a completed mission – you’d have found the best micro investing app for yourself!

Level Completed.

Keep in mind that while micro investing is definitely a useful tool, it does require investors to stay invested for a longer period of time to get high returns.

You will only see good results through micro investing if you can capitalize on the benefits of compounding. So, picking the best micro investing app is a starting point that will pave the way for your investing plans – micro or otherwise!

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