With Best Investment Options Can I Start Investing with a Small Amount?

With Best Investment Options Can I Start Investing with a Small Amount?


You can save a lot of money for you and your family with the help of investment plans. But did you know that the best investment options also allow investing smaller amounts? If you did not, here you can know everything about why people prefer small amount investments, their types, and their benefits. So, stay tuned as you go through the brief description of those topics.

Why People Prefer Small Amount Investments

The majority of people living in India have several limitations on the income and even more on the savings after meeting all the expenses. Also, most of these people live in joint families, and a regular breadwinner of the family will have several dependents. So, setting aside huge sums of money for investment cannot be a viable solution while they still have mouths to feed and expenses to bear.

But some people still believe having a backup plan through investment is the best way to meet unexpected emergencies. For this reason, they prefer small amount investment plans. Through it, they only have to set a very small amount of their income towards the investment. The best investment options in this category allow monthly payments that too for amounts as low as INR 500 every month. Through this, they get access to this otherwise costly mode of saving money.

Types Of Investments Allowing Small Amounts

Several investment plans allow investing minimum amounts that too in monthly payments. Given below are some of the plans that have widespread popularity across the investment plans as the best mode of small amount investment plans.

Recurring Deposits

Recurring deposits are pure banking instruments that all banks, post offices, and financial institutions provide. Through it, an account holder can deposit a pre-decided amount every month until maturity. The account holder will get back the invested amount with interest at maturity. Usually, the interest rate will be more than regular savings account interest rates but lower than that of a fixed deposit.

Life Insurance

Life insurance, especially life insurance with a monthly premium, is one of the best small amount investment plans with the added benefit of life protection. Through it, a policyholder can also get good returns and provide funds to the family in case of an untimely demise.

Bank Savings Schemes

Bank savings schemes are specific investment plans for people belonging to different categories. These include best savings schemes for the elderly, women, girls, retired and special category people. These people can enjoy the extra benefits of higher interest rates. There are also schemes for the general public, but they will only have basic savings account interest rates.

Post Office Savings Schemes

Post office savings schemes are the only schemes that are available to people everywhere in the country, especially in deeply rural regions. Even if the people residing over there aren’t aware of other investment plans, they surely know and must even have a post office savings scheme.

The popularity of post office schemes generates from the extremely wide network of branches and the trust people have in its reliability. These plans also have monthly payments or even annual payments of sums as low as INR 100. Another benefit is that there is no fixed amount of the premium payment in some plans. So, people can deposit whatever money they save.

Provident Funds

Provident funds are voluntary or involuntary deposit schemes in which the account holder pays a fixed portion of the monthly income. This money the gathers and the account holder receives the funds with high-interest rates when they retire. They can also make partial withdrawals and use the funds as collateral for a loan.

This information about small amount investment plans will encourage you to start an investment even with the few available funds. Through it, you can save money for the future without any monetary or budgetary limitations. One of the best investment options will always be life insurance because of the surety of its nature. It would be best to prefer life insurance, especially from reputed insurers.