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Are you considering investing some money to profit from it, but you have 500 rupees in your pocket? No need to worry about investment; you don't need to have a significant amount; you can start with a small amount, too, as there are many ways and techniques of investing a small 500 rupees and making more money.

However, this short article will guide a little about some of the ways to invest 500 rupees. Following the below methods, you can earn a little money every month and save for your significant future investment. So let us look at the following options and ways of investment.

Ways of investing 500

Mutual funds (SIP)

One of the best ideas to invest 500 rupees is to invest them in mutual funds. No matter how small the amount is, investing in this type of systematic investment plan (SIP) will help develop your saving routine. Similarly, there is no risk in mutual funds, and you can generate and save a little money with a small amount. There are many mutual schemes where you can start investing with just 500 rupees. Investing 500 monthly in mutual funds can help you get a significant amount after years. It would help if you were worried about the loss, as there is no loss in investing in mutual funds. About a 10% o return rate can help you grow your investment. However, mutual schemes in which you can invest are DSP funds, HDFC funds, ICICI funds, etc.

Buy bonds

Bonds are said to be one of the best income streaming ways. Investing in bonds can be the best way as it serves a lower risk of loss, so you don't need to be afraid of losing money. You can easily buy bonds for 500 rupees and save them for later use. These bonds can be ideal and will save you in your financial crises. With a higher return, bonds can be an affordable way of investing your money. This will help you in building up your saving habit. However, the starting price of buying bonds is just 100 rupees, so with 500 rupees, you can buy about five bonds. Investing 500 rupees monthly in bonds is a better way of saving money monthly.

Saving account

Another meaningful way that can be beneficial for you in the future is opening a saving account as a saving account is a type of bank account where you can save and deposit your money and can also earn interest. Having a specific amount of interest on your investment can increase your investment. You can easily withdraw your money anytime you want from your saving account. With a 0% of risk rate, saving accounts can be started with just 100 rupees. So, while saving 500 rupees monthly, if you can about 100 or 200 rupees, you can save that too as it will also help increase your money. With the lower financial risk, some banks serve many savings account benefits. So, keep your investment secure by opening a savings bank account and saving your money.

Invest in the company's share

Buying a single share of the company is another option for saving money. Just a single company's share can be less beneficial for you, but still, you can learn a lot about the shares and stocks of the company. So investing nothing and saving zero rupees can be a wrong decision. One should invest little, and with that little one, you can earn thousands. So, if you have a small amount, you can also buy a single share of companies that are low in rates and can learn a lot about stock markets.

Buy books

Nothing is better than something. Another option for utilizing and saving your 500 rupees is to buy about 2-3 small books and learn a lot from them. Educating yourself is a lot better. Invest in yourself and build up your knowledge by reading books. So, if you have a small amount, you can easily buy books and read them in your leisure time. However, once you are done with your reading and have gained knowledge, you can also resell them and get your money back.

Benefits of investing 500 in the above options

After reading the above investment options, you might wonder what the benefits of investing your money are in the options that are mentioned above. Let us discuss some of the benefits below

Affordable

Mutual funds, bonds, etc., are said to be the widely known investment vehicle; investing in mutual funds, bonds, company shares, etc., serves you with the benefit of affordability. One can easily afford and invest a small amount in bonds, saving accounts, and mutual funds.

Less risk

Investing 500 in mutual funds, bonds, books, and other options can reduce the risk of loss. So, one should stay relaxed after investing 500 rupees in the above option as you will never lose.

Help in growing your investment

The above ways of investment facilitate the investor with investment growing benefits. Once you have invested in bonds, a saving account, and SIP, you will be happy to see that your money is increasing as these options serve with a better rate of returns.

Final verdict

While summing up the above article, we can conclude that you don't need to worry if you do not have millions for investment. You can easily invest a little money, like just 500 rupees, and can double your money in a few days. We have mentioned above some of the ways and investment techniques you can follow and invest 500 rupees monthly and let it grow. So, save a little amount for your future and stay away from financial crises.