Can I invest 1000 rs in the share market? Will this investment give me any profits?
If such questions keep popping up in your curious mind but are still pretty sceptical of the share market, then you should definitely read this till the end to throw all the doubts out the window.
Reading newspapers or watching financial news on TV gives this notion to an amateur that the share market is a game of billions, and people with meagre incomes shouldn’t even think about trading in this market.
But is there really any substance in that argument, or is it just a hoax? Yes, you guessed that right. It could be totally a false notion.
Now, you know that, yes, you can invest with 1000 rs in the share market. So what’s next? Do you really know how you can use this amount to trade? If not, then here is the investing guide for young adults and beginners who want to step into the world of share market investment.
How can I Invest 1000 Rs in the Share Market?
Just like how an infant attempts baby steps one at a time and gradually start running and jumping, similarly, you should approach the share market with caution initially. Investing a small amount of 1000 rs could actually become a very sensible thing to do.
The next probable question here is: How can I invest 1000 rs in the share market?
But with 1000 rs to invest, your options also diminish a bit.
Firstly, you will only be able to invest in stocks that are priced under 1000 rs. And if you wish to buy multiple stocks, then you won’t be able to choose stocks that are priced more than 500 rs each.
Among the choices of stocks that you have in this budget, it will be appropriate to invest in popular companies or scrips. For example, you can invest in national banks which have a decent reputation and a good track record financially.
And to find such stocks the investors have to do some research or you can rely on the full-service stockbroker who offers you the research tips and recommendations for long-term investment.
Secondly, To start investment and get the answer to the question that can I invest 1000 Rs in share market with moderate risk, you can pick stocks from mid-cap companies or large-cap companies that are available at the nominal price.
You can again pick stocks for the long term from the index like Nifty and Sensex in order to gain a high return. Make sure that the stocks you pick come from mid to large-cap capitalization if your risk appetite is mediocre or low. However, you can go for small-cap stocks as well, if you are a relatively higher risk-taker.
Small-cap stocks are relatively cheaper and within those 1000 Rs, you can get a larger volume of shares.
Having said that, remember one thing. In the stock market, the number of shares you buy for a specific capital matter less than the quality of stocks bought by you. Therefore, focus more on the stocks that are relatively reliable with a small mix of risky stocks (as per your choice).
Can I start Intraday Trading with 1000 Rupees?
When it comes to intraday trading, the strategy will change a bit. But that doesn’t mean that you can’t trade on Intraday with such a low amount.
Undoubtedly, anyone can start intraday trading with just 1000 rupees.
All you have to do is to trade in volume.
And, How trading in volume helps you in maximizing your gains?
For this, let’s consider an example.
Let’s suppose you buy Alpha shares at ₹100 each. So herewith Rs 1000 you bought 10 shares.
Now the share performed well in a day and you exited the market with the gain of 10% thus by the end of the day the profit you earned would be equal to (₹1100-₹1000) ₹100.
In another scenario, what if you picked the stock priced at ₹25 now with ₹1000 you would have bought 40 shares.
Considering the gain of ₹10 then the potential profit would be ₹400.
So, picking the right stock and trading in volume can help you in making good gains even with limited funds.
So, next time anyone tries to discourage you about trading in the share market with a low budget, do not hesitate to answer them back with the points covered in this article.
By the way, this also doesn’t mean that you should turn overconfident. It’s important to understand that learning about investing will take some time. Steadily, form your financial plan where you invest a set amount at regular intervals in reputed companies.
And if you need any further assistance from here on how to do it: