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Investing even very small amounts can reap big rewards. Here are 4 ways you can start investing with little money today.
Have you always had the feeling that you needed a lot of money to start investing?
We don’t blame you.
Our friends and family, Hollywood and the Internet has made us believe that investing is only for suited- up Wall Street Investors who have truck loads of cash.
We’re here to prove them wrong.
By the end of this article, you’ll discover how to start investing with little money, and more specifically, 4 great investments you can make with only RM100 or less in Malaysia.
In fact, some of these investments have initial capital requirements of only RM1!
Let’s say you’ve been following our content, but you’re still too afraid to take the first step.
Being able to test the waters by investing with little money could build your confidence before making larger deposits of your hard earned cash.
Personally, I started out with just an RM100 investment because I was too afraid.
After getting used to fluctuations and checking my investments 10 times a day, I’ve gotten to the point of being way more comfortable with my money.
Before you start investing with little money, you need to know that an investment of RM100 is not necessarily going to change your life.
You’ll only see results if you constantly add to this amount and allow the power of compounding to do its work.
It’s OK if you don’t have a lot of money, RM100 now and an extra RM50 every month will go a long way over 40 years!
So let’s go into 4 ways to start investing with little money, starting with the first one…
Amanah Saham
Amanah Saham is a great investment tool by PNB that was meant to get Malaysians involved in investing their money.
To be in line with this vision, all Amanah Saham funds have a minimum initial investment of only RM10!
In my opinion, Amanah Saham products are one of the best ways to start your investing journey.
They have fixed price funds that guarantee your capital and pay out yearly dividends on your invested money.
If you’re a Bumiputera, we highly recommend you to go for ASB to maximize your returns.
If you want a bit more fun, they also have variable price funds, meaning the value of your investment fluctuates from day to day.
I don’t have much insights as to how these funds perform or how good they are as investments, but it’s an option for you!
On top of this, a PNB owned product called Raiz Invest focuses on micro investing and allows you to invest into PNB funds with amounts less than RM1.
If you want to know more about Amanah Saham, you can check out our article on it.
Gold
The second way you can start investing with little money is by investing the ever popular gold.
Gold is usually seen as a diversifying investment to make sure your entire portfolio of stocks, bonds, and commodities are balanced.
However, there are still people who invest in only gold!
Over the past year, gold’s return has been over 25%, so who am I to say this isn’t the right strategy.
Just recently, gold hit all-time highs at just over $2,000 an ounce.
When looking to invest in gold, I recommend doing it as I would any other investment – online.
HelloGold is a great app that have good reviews from other personal finance bloggers.
Their minimum initial deposit is only RM1, allowing us to include gold in this list.
Do note that the fees are a bit on the high side but this is because they actually store the physical gold for you and you can request for it if you want.
There are cheaper alternatives of buying gold such as owning an ETF, but you can’t exactly request for your gold to be delivered to you physically since it’s more like a tracking fund of gold prices, or put more simply — gold on paper.
I don’t know if this feature of requesting physical gold to be send to you is really something people want, but it’s a cool feature to have I guess.
Bitcoin
The third way to start investing with little money is by investing in the digital version of gold — Bitcoin.
Bitcoin has been generating a lot of hype in the past few years and surveys have shown that millennials are way more attracted to it as an investment vs the Boomers and Gen X’ers.
Bitcoin and gold draw some similarities in terms of the purpose of it’s investment, being a hedge against a devaluing fiat currency.
Everything else is pretty different though.
Bitcoin has way more upside potential if it gets widely adopted, but its valuation fluctuates wildly.
If you want to invest in it, be prepared for big fluctuations.
I personally invest in Bitcoin directly and recommend using Luno to do this.
It’s a great app with an easy interface and even allows you to transfer Bitcoin to friends and use it as a Bitcoin wallet.
The minimum investment of only RM3 helps us put Bitcoin as one of the investments Malaysians can make with RM100.
If you want to find out more about why and how much I invest in Bitcoin, you can check out our article on it here.
(P.S If you wanna try out Luno, you can use our referral code Y5SZ8B so we both get RM25 once you buy RM250 worth of Bitcoin! 🙂)
Robo Advisors
We saved the best for last.
The last (and possibly best) way to start investing with little money is through Robo Advisors.
It’s one of our favourite ways to invest right now.
Robo advisors are investment tools that help us invest our money in a diversified portfolio depending on our risk appetite, all on auto-pilot.
They’re great for both beginners and knowledgeable investors alike as they aim to remove the emotional aspect of investing.
When using a robo advisor, you don’t have to choose what to invest in.
They do it all for you after asking a few questions to determine how risk averse you are.
The best part is, you can own a portfolio of so many different assets with an investment of just RM100.
They even cover gold which i mentioned earlier and is our preferred way of getting exposure to the asset.
There are 3 main players in the Malaysian market right now, with StashAway allowing for minimum deposits of RM1 while both Wahed Invest & MyTheo have it at RM100.
If you clicked on one of the links above, you’ll notice that they’ll ask you some questions like your age and experience with investing to determine your risk appetite.
From there, they’ll start carving out your personal portfolio and run it on auto-pilot for you!
Either way, all 3 robo advisors fit in our category of top investments with only 100 bucks.
If you want to invest with Robo Advisors, check out our article on the comparison of the 3 Robo Advisor apps here so you know which one fits you the best!
Final Thoughts On Investing With Little Money…
The hardest move to make is often the first move.
You may be feeling a lot of resistance to start investing because of fear, uncertainty or information overload.
Hopefully this article on 4 ways to start investing with little money showed you that investing doesn’t require a truck full of cash, nor does it have to be complicated or scary.
Investing is a skill that, like any other skill, takes practice, patience, and most importantly, the desire to get started.
It’s a lifetime skill that will reward you exponentially over the course of your life, so the earlier you get your feet wet, the better.
You don’t have to be great to start, but you have to start to be great 🙂
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