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Micro Investing: What It Is And How To Get Started

“I want to retire at 40, but I don’t want to miss out on living my 20s”!

If this is you, we’ve cracked the code and found the missing piece of the puzzle for you – micro investing.

In this blog, we will unravel the concept of micro investing, explore the best micro investing app in India, and guide you through the steps to embark on the journey to financial wellness.

What is Micro Investing?

Micro investing, as the name suggests, is the practice of making small investments. It allows individuals to invest small amounts of money into various stocks, bonds, exchange-traded funds (ETFs), or cryptocurrencies. The whole idea behind micro investing is to break down the entry barriers to the investing ecosystem that often prevent people from investing due to high cost. It’s like turning small drops of water into a mighty ocean of wealth.

Micro investing platforms and apps have gained popularity in recent years, making it easier than ever for people to start investing with just a few rupees. Most of these platforms offer user-friendly interfaces and automated investment features that make the process simple and accessible to everyone.

One form of micro investing is roundup investing.

Round up investing is a form of micro investing that grabs the difference (chillar) from your transactions and invests them. It’s like having a helpful pocket-sized genie in your phone. That burger combo you ate? Rounded up! That spontaneous shopping spree? Rounded up!

Most importantly – round up investing doesn’t stop there, it unlocks the power of compounding and enables your money to grow exponentially. And if you continue investing regularly, stay invested and allow your money to grow for you – the effect is truly magical.

Should you wait for a high-paying job before starting micro-investing? 

Simple answer; No! With micro investing, you can start building your financial future right from your dorm room. All it takes is a few rupees lying in your bank account to get the ball rolling. Micro investing breaks the notion that investing is only for big shots who want to buy fancy houses and drive shiny cars. It lets you invest for the small things in life that truly matter. Whether it’s saving up for a road trip with friends, buying that DSLR camera you’ve always wanted, or even starting a rainy-day fund for unexpected adventures, micro investing allows you to make progress towards your goals, no matter how big or small they may be.

How can micro Investing help you?

1: Enjoy big returns from small effortless investments

If you ever wondered if small efforts can yield significant results, get this: investing just ₹100 everyday for 3 years will give you about ₹1,27,678 in 3 years.

Thus micro-investing challenges the notion that investing requires a fortune. Each small investment you make paves the way for a brighter financial future.

2: Unlock the power of compounding

As a child, did you ever throw stones into a pond and watch them create a beautiful ripple effect?

You can think of your ‘chillar’ as a stone creating a ripple effect on your financial well-being. Day by day, your investments accumulate, grow, and create a steady stream of passive income.

3: Cultivating a financial mindset

Micro investment is not just about generating passive income; it’s about cultivating a financial mindset from a young age. By making regular contributions, you develop a habit of discipline, foresight, and long-term planning. It’s a journey of small steps that leads to big rewards.

4: Turn spare change into wealth

Micro investing apps will not only keep your spare change safe but also turn it into something more valuable. It’s like having a virtual piggy bank that grows and multiplies your savings automatically.

  1. Easy, Effortless and hassle free investment

Yes! You read it right. Gone are the days when you needed complete expertise to start investing.

New-age fintechs have made it easier for youngsters (or anyone wanting to start investing!) to start investing – not just by reducing the capital requirement but also with the digitization of KYC and the introduction of automated processes.

With the Deciml app, for example, you can set up in 2 super simple steps and experience hassle-free investing from the very get-go.

Here’s how the power of investing and compounding is right at your fingertips:

  1. Complete a super-quick Account Setup

Account Setup is basically your KYC (Know Your Customer). This step is as easy as verifying your PAN and – nope, that’s it! That’s all you’ve got to do.

PAN verification is an RBI-mandated process that ensures the complete security of your investments.

P.S. This data is even more secure because Deciml employs 256-bit bank-grade encryption!

  1. Start auto-invest

Auto-invest or Autopay ensures that all small and big investments happen automatically, effortlessly and instantly. You don’t have to punch in an OTP every time you make an online transaction to tell Deciml that you have spent and would like to round up that spend.

Rest assured – Deciml will update you every time the money gets debited.

You can set up autopay in under a minute through your UPI ID.

And now comes the most exciting and effortless part – watching your money get to work and start growing!

So if your goal is to retire early without compromising on the joys of your 20s – micro-investing is the missing piece of the puzzle that you’ve been searching for.

So, why wait? Start rounding up your purchases, and let your money start working for you while you continue spending guilt-free!

FAQs 

  1. What is micro investing?

Micro investing refers to the practice of making small investments frequently thus allowing individuals to overcome the entry barriers to the financial ecosystem and start investing with minimal amounts of money.

  1. How does micro investing differ from traditional investing?

Micro investing focuses on small investments, often utilising automated features and user-friendly platforms, making it accessible to individuals with limited capital. Traditional investing typically involves larger amounts of money and may require more complex investment strategies.

  1. Can micro investing generate significant returns?

Yes, micro investing has the potential to generate significant returns over time, especially when combined with the power of compounding. Even small, consistent investments can accumulate and grow, leading to substantial wealth accumulation in the long run.

  1. Is micro investing suitable for young individuals or beginners?

Absolutely! Micro investing is particularly well-suited for young individuals or beginners who want to start investing with limited funds. It helps develop a financial mindset, cultivates discipline, and provides an opportunity to grow wealth gradually.

  1. Are there any tax implications with micro investing?

Just like with any other investments, profits from your micro investments may be subject to capital gains tax. It’s advisable to consult with a tax professional or financial advisor to understand the tax implications and any potential tax-saving strategies.

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