Our young investors often wonder if there is any real merit in investing small amounts or if micro-investing is of any value at all. We are here to clear the air once and for all — investing any amount, big or small, is a valuable endeavor. And the sooner you start, the better it is in the long run. And look, we’ll be honest with you — micro-investing alone is not a sustainable financial plan. It is a small part of what is (hopefully) a bigger and more diverse portfolio. But it can be a useful stepping stone to bigger and smarter investments.

So let’s delve into it a bit more, shall we?

What is Micro-Investing?

Let’s start with the most important question — what is micro-investing?

Micro-investing is the foundation on which the Deciml App was developed. It is the concept of investing small amounts of money consistently over a long period of time to earn a compounding interest over time. Unlike most investments, micro-investments do not require you to save money and invest large lump sums at once.

One of the easiest ways to micro-invest is through round-up investing — wherein the spare change from your online transactions gets invested in a fund of your choice.

Here’s an example of how it works as part of your daily routine:
Say you ordered wraps for lunch and paid the bill amount of ₹295 via your UPI app or your card. Once your online payment has been completed — a round-up investment app such as Deciml will pick up this spent amount, round it up to the next 10 and invest the difference. So in the case of your lunch — Deciml will round up the spent amount of ₹295 to the next 10 which is ₹300 and invest your spare change of ₹5.
Exactly. It’s that simple!

If you think about how many online transactions you make in a day — from taking that auto to work, to getting a midday snack — it becomes easy to see how many investments you are capable of making in a day and that when invested regularly, small amounts can turn into substantial investments over time.

What is the scope of micro-investing?

What can you do with your hard-earned money?

You can put it in a savings account — that’s smart! But it means your money is just lying in your account, not really working for you. You can start setting aside some money to make a one-time lump-sum investment — that’s great! But then by the time the saved amount reaches a substantial level, it’s already lost some amount of value.

Micro-investing is therefore a great alternative that grants you the ability to start using your money to make more money, right here right now. Once you learn more and earn more, your investment journey won’t solely rely on investing spare change. Ideally, with time and more earnings, you will be able to make bigger and more frequent investments. But, micro-investing tackles the “when is the right time to start investing” conundrum and lets you get to it, instantly.