Investing is a sustainable path to achieve your financial goals but as the old adage says — "It takes money to make money"— stands true with investment. But, if you don't have much to invest, there’s a concept of micro-investing that allows investing with as low as Re 1.

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Micro-investing gives you the choice to invest small amounts every day, rather than investing a large amount in one go, making it appealing to investors.

How to get started?

Spare change investing is one of the easiest ways to get started with micro-investing. It is the automatic investment of the spare change from your online transactions, said Satyajeet Kunjeer, Founder & CEO, Deciml — micro-saving and micro-investing app — told CNBC-TV18.com.

For example, if you paid Rs 395 on your grocery bill via UPI or debit card, the round-up investment app will automatically round this amount to the next 10 which is Rs 400 in this case, and invest the spare change of Rs 5 on your behalf.

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What factors should you consider here?

As with investing in general, micro-investing too is all about consistency. The small investment amounts add up only if one is regularly investing them, Kunjeer said.

"It may not be enough for the bigger goals in life like studying overseas or retirement, however, it is a great way to start. If you leave your money in a savings account or are keeping it aside in order to be invested later, your money is losing value," he added.

Why should young investors go for it?

While micro-investing is a great supplementary investment platform for investors of all ages, it is especially well-suited and most beneficial for young investors (18-25 years). As this demography is already frequently transacting digitally, the amount through spare change investments made daily can end up as fairly significant.

Micro-investing can thus prove to be a simple gateway to the investing ecosystem for young Indians who want to start investing but don't know how to; without demanding a change in lifestyle from them.

What are the benefits and challenges of investing in micro-investing?

As stated before, micro-investing is a way to initiate oneself into the investment ecosystem. With small consistent investments, one can start the wealth-building journey early on. However, it must be noted that for long-term bigger goals in life it is essential that these small contributions towards investment become more frequent and larger over time, Kunjeer told CNBC-TV18.com.

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