For most of us, the piggy-bank or the humble ‘gullak’ are the earliest memories of savings at a young
age. From
carefully-retained ‘chillar’ on an errand-run to ‘money for sweets’ that relatives lovingly thrusted in
our fists during
Diwali, the piggy-bank was trusted with a pool of money to be broken after the passage of a significant
amount of time.
We were encouraged to put money way into it often — small denominations of cash that we wouldn’t miss —
that would
culminate into a big enough sum for future indulgences. After all, that’s what all investments are for
anyway, right?
But can you really make money by stashing away spare change? The simple answer is yes. Let us tell you
how!
What is Micro-investing?
Now the gullak has grown up and assumed a more adolescent name — it’s called micro-investing or round-up
investing. And
unlike its childhood counterpart, idle money set-aside in micro-investing platforms can earn you money.
Let’s take you
through a more formal definition for better understanding:
‘The process of saving, depositing, and investing modest amounts of money into an investment account is
called
“micro-investing.” Small amounts of cash may have a better opportunity to grow in an investing account
than they would
if they were stashed away under the mattress! As much as you’d like to keep it for an end of month
beer-run or an
unforeseen party, it is not the most productive use of your money!’
Another benefit is that traditional investments have restrictions like trading fees and the requirement
of accounts with
minimum balance, which can be avoided by micro-investing platforms.
Now I know what you’re thinking — all this is great, but how does micro-investing actually work? And
will it work for me?
How Does Micro-Investing Work?
Micro-investing platforms work in a variety of ways. Some demand a modest initial payment, while others
connect to your
bank account and begin investing with little amounts of money rounded off from different activities,
such as grocery
shopping or purchasing a smoothie. It’s like investing your pocket-change every time you get into a cab!
Where Do Micro-investing Platforms Invest Your Money?
Back in the day when complicated words like ‘micro-investing’ had not yet been thought of, the gullak
that held a
far-off resemblance to a farm-pig was the family go-to-place for left-over chillar.
Today, mobile applications can help you pool in your spare change, bit by bit, and invest in a credible
mutual fund with
a proven track-record of beating benchmark indices.
If I Start Micro-Investing, How Will It Work?
Let’s pretend that Person X has signed up on Deciml, and authorized the app to auto-invest on their
behalf every time
they spend digitally.
Now, X buys a coffee for ₹127 every morning. Their
bank account
gets debited by ₹130 when their card is
swiped in the
machine. The additional ₹3 is automatically put into their
investing account. The amount is tiny, but
the frequent
payments add up to a significant amount over time. You get the idea, right!
The aim is to round up purchases to the closest ten or hundred rupee and invest the leftover change in a
diverse
portfolio of exchange-traded funds or mutual funds over time. Making regular monthly contributions
through round-up
investing apps like Deciml can help you stick to an achievable investment plan and avoid trying to time
the market,
which is a technique that even the most seasoned investor can’t help falling prey to.
How is Micro-Investing Beneficial for You?
Let’s compare, shall we?
Traditional investments like FDs, RDs, lumpsum investments in Mutual Funds or Shares -
Last, but not the least, these round-up investment platforms make investing so simple that it goes hand
in hand with our
lifestyle, reminding us fondly of our childhood gullak- every time you spend some money, you should make
it a point to
save some. So go on and test the waters. Participate in the financial markets one coffee or beer at a
time!
Learn more about Deciml, the micro-investing app that let’s you invest as little as ₹1 every time you
spend here
For most of us, the piggy-bank or the humble ‘gullak’ are the earliest memories of savings at a young
age. From
carefully-retained ‘chillar’ on an errand-run to ‘money for sweets’ that relatives lovingly thrusted in
our fists during
Diwali, the piggy-bank was trusted with a pool of money to be broken after the passage of a significant
amount of time.
We were encouraged to put money way into it often — small denominations of cash that we wouldn’t miss —
that would
culminate into a big enough sum for future indulgences. After all, that’s what all investments are for
anyway, right?
But can you really make money by stashing away spare change? The simple answer is yes. Let us tell you
how!
What is Micro-investing?
Now the gullak has grown up and assumed a more adolescent name — it’s called micro-investing or round-up
investing. And
unlike its childhood counterpart, idle money set-aside in micro-investing platforms can earn you money.
Let’s take you
through a more formal definition for better understanding:
‘The process of saving, depositing, and investing modest amounts of money into an investment account is
called
“micro-investing.” Small amounts of cash may have a better opportunity to grow in an investing account
than they would
if they were stashed away under the mattress! As much as you’d like to keep it for an end of month
beer-run or an
unforeseen party, it is not the most productive use of your money!’
Another benefit is that traditional investments have restrictions like trading fees and the requirement
of accounts with
minimum balance, which can be avoided by micro-investing platforms.
Now I know what you’re thinking — all this is great, but how does micro-investing actually work? And
will it work for me?
How Does Micro-Investing Work?
Micro-investing platforms work in a variety of ways. Some demand a modest initial payment, while others
connect to your
bank account and begin investing with little amounts of money rounded off from different activities,
such as grocery
shopping or purchasing a smoothie. It’s like investing your pocket-change every time you get into a cab!
Where Do Micro-investing Platforms Invest Your Money?
Back in the day when complicated words like ‘micro-investing’ had not yet been thought of, the gullak
that held a
far-off resemblance to a farm-pig was the family go-to-place for left-over chillar.
Today, mobile applications can help you pool in your spare change, bit by bit, and invest in a credible
mutual fund with
a proven track-record of beating benchmark indices.
If I Start Micro-Investing, How Will It Work?
Let’s pretend that Person X has signed up on Deciml, and authorized the app to auto-invest on their
behalf every time
they spend digitally.
Now, X buys a coffee for ₹127 every morning. Their
bank account
gets debited by ₹130 when their card is
swiped in the
machine. The additional ₹3 is automatically put into their
investing account. The amount is tiny, but
the frequent
payments add up to a significant amount over time. You get the idea, right!
The aim is to round up purchases to the closest ten or hundred rupee and invest the leftover change in a
diverse
portfolio of exchange-traded funds or mutual funds over time. Making regular monthly contributions
through round-up
investing apps like Deciml can help you stick to an achievable investment plan and avoid trying to time
the market,
which is a technique that even the most seasoned investor can’t help falling prey to.
How is Micro-Investing Beneficial for You?
Let’s compare, shall we?
Traditional investments like FDs, RDs, lumpsum investments in Mutual Funds or Shares -
Last, but not the least, these round-up investment platforms make investing so simple that it goes hand
in hand with our
lifestyle, reminding us fondly of our childhood gullak- every time you spend some money, you should make
it a point to
save some. So go on and test the waters. Participate in the financial markets one coffee or beer at a
time!
Learn more about Deciml, the micro-investing app that let’s you invest as little as ₹1 every time you
spend here
