With so many new investors entering the market, one of the basic questions among newbies is how much money they need to start investing in the stock market. Can you start investing in stocks if you do not have much money? Can you invest Rs 100 in share market? This is what we are going to discuss in this post.
Today, we are going to discuss what is the amount with which beginners should start investing with and can you invest Rs 100 in share market. Keep Reading.
Prerequisites to Start Investing in Share Market
Before we answer your question, let us first tell you the pre-requirements to start to invest in the Share market in India. If you want to invest or trade in Stocks in India, you’ll require a demat and trading account. Both these accounts are opened together with any of the top stockbrokers in India.
For opening these accounts, you’ll require some key documents like your PAN Card, Aadhar card (or document proof), Savings Bank (to link with your trading account), and a laptop/mobile with an internet connection to complete the account opening process and to trade/invest.
Now, looking into the account opening charges for demat and trading accounts, most stockbrokers may charge you somewhere between Rs 200–300 to open your demat account. However, many leading stockbrokers are also offering FREE Demat account openings. If you do not want to pay account opening charges, you can go with these FREE accounts with top brokers.
If you’re just starting out, we’ll recommend you setting up your stock brokerage account with any of the below-mentioned stock brokers:
1) Zerodha — No 1 Stockbroker in India — Demat/Trading
- Discount Broker | +5 Million Clients — Biggest Stockbroker in India | Zero Brokerage on Delivery Trades | Rs 20 Per Order on all other Trades | Instant Online Demat Account
- Account Opening Charges: Rs 200 for Equity + Rs 100 for commodity (Optional)
2) Angel Broking — FREE Demat/Trading Account
- Full-Service Broker with Flat Brokerage | +4 Million Clients | Rs 0 Brokerage on Equity Delivery | Rs 20 per order for Intraday and F&O trade | FREE Added Advisory Services
- Account Opening Charges: ZERO
The brokerage charge for delivery trades for both these brokers is Zero which means that you don’t have to pay any brokerage if you’re making long-term investments. For Intraday trading and other trades, you have to pay a maximum brokerage of Rs 20 per order. Moreover, with the same demat account, you can invest in Stocks, Mutual Funds, and IPOs for NIL Brokerage on these two stock brokers.
In addition, please also note that there is Annual Maintenance Charges (AMC) for setting up these accounts. You have to pay Rs 300 per year for Zerodha as AMC. Angel broking has currently waived off its first year AMC and from the second year onwards you have to pay an AMC of Rs 450 with Angel Broking. Usually, this AMC Charge is between Rs 300–500 for most of the leading stock brokers in India.
Now that you have understood the pre-requisites, let us move forward to our topic that can you invest Rs 100 in share market. Well, obviously you can see that you can set your demat and trading account for FREE with many leading brokers, and hence account opening charges should not be an issue. Next, let us look into stocks to buy in this range.
Can you invest Rs 100 in Share market?
The answer to this question is “Definitely, Yes”.
You can invest Rs 100 in share market. There are many shares in India whose share price is trading below Rs 100. The minimum number of quantity of shares that you need to buy is one. Therefore, you can buy one share of such stock whose current share price is below Rs 100. Hence, you can make an investment of 100 in the share market.
Further, this strategy of investing Rs 100 or less is good for the absolute beginner who wants to learn the process of investing in the stock market without taking much risk.
Before moving forward, we would also like to mention that though Rs 100 is good enough to start investing in stocks, however, if you’re planning to invest in Mutual Funds or IPOs, then you’ll require more money. For investing in Mutual funds, you’ll require at least Rs 500 per month as a Systematic investment plan (SIP) or a higher amount if you’re going for a lump-sum investment. For investing in IPOs, you have to buy at least one lot of stocks which might cost you somewhere between Rs 12-15k. You cannot buy just one stock while investing through IPOs.
Related Article: What is The Minimum Money I Need to Start Stock trading in India?
How to find stocks with a Share Price of less than Rs 100?
Now, let us discuss how to invest in share market and find stocks with a share price of less than Rs 100 to invest. There are a lot of stock screeners available in the market using which you can easily filter stocks whose current share price is less than Rs 100.
One such best stock screener is Trade Brains Screener, which is freely available on our Portal for basic use. Here’s a quick demo of how you can find stocks with a Share Price that is less than Rs 100 using Trade Brains Screener.
- Go to Trade Brains Portal and login.
- Using the top menu bar, Go to Products –> Stock Screener
- Select “Current Price” from the filters and use the criteria “Less than → 100”
- Finally, Apply the filter.
- You will get the list of all the stocks whose share price is trading below Rs 100.
In addition, you can also apply other filters like Marketcap, Industry Filter, PE Ratio, etc on Trade Brains Screener to make more screening. Here’s a demo of how you can use Trade Brains Screener to made advanced stock research.
In this article, we discussed the answer to can you invest Rs 100 in share market. The answer to this question is Yes. You can invest Rs 100 or even lower amount in stock market. However, there are a few requirements. You’ll need to set up your demat and trading account in order to start investing. In addition, these accounts will also come up with AMCs which you have to pay periodically to keep your account active.
That’s all for today on this post on can you invest Rs 100 in share market. We hope this article on how to invest in share market was useful to you. If you got any queries on this topic feel free to write them down in the comment section below. We’ll be happy to answer your question. Have a great day and Happy investing.
Frequently Asked Questions (FAQs)
- Can I invest with just 100?
Yes, investing with Rs. 100 is possible. However, it is a very small amount to be invested in the stock market. With Rs. 100, a few less priced or penny stocks can be bought, or maybe one or two shares of a company that has a higher share price. Please note that Rs. 100 is insufficient if you haven’t opened a demat and trading account yet, as the annual maintenance charges are more than Rs. 100 for most brokers.
- Is buying 1 share of stock worth it?
Yes, in a few cases. For example, if someone bought MRFs share at Rs. 50,000, and sold it at Rs. 75,000, they made 50% returns i.e. Rs 25,000. However, if the price of a share is Rs. 20 for company X and in 5 years, it does well and somehow the price rises to Rs. 1000 per share, an investor with just one share hasn’t made much profit, even though the company did well. If the investor would have bought more shares, then he or she would have made more profit. So, whether buying one share is worth it or not, depends on a few factors.
- How do beginners buy stocks?
Beginners can buy stocks by:
- Defining their investment goals: whether they want to beat inflation, generate passive income, or get higher returns or something else.
- Decide whether they want to invest a lump sum or systematically.
- Get at least basic knowledge about the market and its working.
- Choose a broker and open a demat and trading account.
- Start researching stocks of well-known and familiar companies.
- Select a platform to track your performance.
- How fast can you make money in stocks?
How fast you can make money in stocks depends on when you buy stocks, how many you buy, the companies whose stocks you buy, and much you want to make. Some people trade in stocks and make money in a small amount of time, while others invest in them for a long period of time and make consistent money. In general, you can easily make about 12% to 15% returns in a year with stocks. They beat inflation and give better returns than their counterparts, however, the risk involved is high. The top investors do make 20% or more per year when they analyze properly before buying.
- Can stocks make you rich?
Yes, stocks can make you rich. Some of the best examples of this are Warren Buffet, Peter Lynch, and more. In India, Rakesh Jhunjhunwala, Radhakishan Damani, Dolly Khanna, Mukul Agrawal, and Ashish Kacholia are some of the top investors who have made huge fortunes with the help of the stock market. In the end, making money in the stock market is not gambling, but is about taking calculated risks. And stocks can make you rich if you’re talking right and calculated risks.