How to invest R100 in the stock market

You might think you need to have a lot of money and knowledge to invest in the stock market, but with today’s investment products, everyone can invest – you don’t need millions, tens of thousands or even thousands of rand to get started. We found out where you can invest from as little as R100 and spoke to two financial professionals for tips.

A small start is better than no start

It might feel that a few hundred Rands isn’t much, but the beauty of investing is that the value of these small amounts should grow, and you will continue to invest as and when you have the money available.

“When we start investing it is less about how much and more about starting the habit and using the power of time. Even a small amount is better than none,” is the advice from JustOneLap, financial professionals focusing on investment education.

Anthea Gardner, author of Make Your Money Work For You: Think Big, Start Small, and managing partner at Cartesian Capital, says: “Investing just R100 into shares will hopefully get you excited about investing and help you understand how the stock market works. You will learn about volatility, asset classes and the difference between yielding assets and risk assets and hopefully how to build a portfolio that suits your investment goals and risk appetite.”

She also says you should increase your investment amount over time as you earn more money or tighten your budget.

Where you can invest R100

EasyEquities
An online platform where you can buy shares in listed companies or fractional shares (part of a share) quickly and easily, at a low cost.

Find it: Online, EasyEquities.co.za

To open an account, you need: ID and proof of address and a bank account or credit card that you use to deposit money into your EasyEquities account so that you can start buying shares or other investments

Costs: No charge to open an account, low charges when you transact

Where can you invest: A range of local and offshore shares, ETFs (exchange-traded funds), and other investment accounts.

Bonus: Their website has loads of interesting and informative articles and videos to improve your investment knowledge and help you manage your account.

SatrixNow
The minimum investment amount for many ETFs and unit trust funds is over R250 a month. SatrixNow is an online platform with no minimum investment amounts, giving you the opportunity to invest smaller amounts in a selection of funds.

Find it: Online and app, Satrixnow.co.za

To open an account you need: ID number and a bank account

Costs: Maximum platform fee of 0.5% per annum and low transaction costs

Where can you invest: A range of Satrix funds

Bonus: You can also transact on the app, and the website has helpful articles and tips

Outvest
You can invest in five different investment accounts with a minimum monthly investment of R100 a month (excluding the endowment product).

Find it: Online and app, Outvest.co.za

To open an account you need: An ID number and a bank account

Costs: A maximum fee of 1.5%  of your investment per month

Where you can invest: Five different investment accounts, tailored to investment goals such as retirement

Bonus: Crowdvest, similar to crowdfunding, lets your friends, family and colleagues invest in your account so you can reach your investment goal faster

Stash by Liberty
You can put your spare cash into Stash at any time and choose where to invest it when you have stashed more than R20.

Find it: App, which you can find details on here

To open an account, you need: ID number and bank card

Costs: No fees

Where you can invest: In a portfolio of SA’s top 40 shares, or a high interest earning cash account

Bonus benefits: You can set amounts to invest in Stash from your bank account when certain events occur. For example, you might set up an investment into Stash from your bank account when you burn 500 calories from exercising. Or if it is sunny!

Do these three things before you invest

  1. Double check the fees charged, when these are charged and if they are deducted from your investment account or if you have to pay them separately.
  2. Make sure you understand the investment terms and conditions, including how risky the investment is (for example, can your investment amount drop to zero?).
  3. Find out how you withdraw your investment, if there are any costs associated with this, and how long it can take.

Enjoy and learn as you go

There are a number of options for people wanting to invest small amounts of money in the stock market. Don’t worry too much if you feel you don’t know enough about investments when you start off. Enjoy the experience and learn as you go. Read the news and financial websites to build your knowledge and remember that even the most experienced investors started off small, and they still learn new things every day.

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