How To Invest With $100

By | October 14, 2013

100 Dollar Bill
If you have found a $100 spare and you were thinking about the best way in growing money into something more, making your money work for you then you will have a choice of different options and you should consider the ones that will suit you best. This is not an article that will tell you where the best places to invest your money but the options that you have with the funds that you have available.

If this is the money that you have to invest you need to think carefully about the risk that you are prepared to take with it. If you do not want a high risk option this will mean that your $100 investment is relatively safe, there is still a risk with whatever investment that you chose. The downside to this type of investment is the return that you can expect to make; it will be considerable less than if you were to invest in a high risk option, but it is more likely that you will lose not only any interest that you might have made but your capital too could be lost.

Bonds

If you are looking for a low risk option then you might consider one of the Treasury bonds they will offer you a return for your investment and they are a low risk option. This means that the interest payments that you will receive will reflect a low return.

Stocks and shares

It is going to be possible that you will be able to buy a few stocks and shares in different companies but beware that you will need to pay for the shares as well as a fee for the purchase. This will depend on where you have purchased your shares to the price that you will need to pay.

It is important that you do your research into the stocks that you are hoping to purchase, because of your limited budget you will have to be very careful what you are going to buy.

Mutual Funds

It is possible that you are able to reduce the risk to your capital by considering going for a mutual fund; this is a lot less risky operation because you are not buying shares directly and are sharing the spread of the investment with other investors.

You might need to find a broker who is willing to accept the $100 investment; some have a minimum buy in value. It is also important to look at the fees that they will be charging you; this will eat into any profit that you might make.

Decisions

Whatever decision that you decide to make with your money make sure that it falls within your investment plan. An investment plan will help you work out what you are hoping to achieve and to aim you in the right direction.

It is important that you are able to plan how you are going to make your money work for you.

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