Just keeping your money under the mattress is not sufficient, as its value continues to erode. If you cannot save big bucks, start with as little as Rs1000. The only way to keep ahead of inflation is to invest, No matter how small it is.
Do you recall when Rs 10 used to get you a full plate of samosas ten years ago? Now, you may be lucky to get one piece. That’s inflation. It nibbles away at your money gradually.
Merely keeping your money isn’t sufficient, since its value continues to decline with inflation. The only means to keep up with inflation is to invest, even if you can afford to save only Rs 1,000 a month.
WHY SHOULD YOU INVEST?
Inflation is a slow drain on your wallet. If you just save money and do not invest, your purchasing power continues to decline. The secret is to let your money increase more than inflation. Even small investments will work if used smartly.
As per Trivesh, COO at Tradejini, the stock market has become more popular in the past few years, particularly after the post-COVID rally. “Indian stock market has delivered huge returns in recent years. Nifty 50 appreciated 21% in 2024, which brought more investors on board. But can the market continue like this?” he said.
STOCK MARKET vs MUTUAL FUNDS?
Those who can afford to take risks can invest Rs 1,000 a month in small-cap stocks to earn money through high returns. The huge growth potential of small stocks comes with high volatility. “In 2024, small-cap stocks yielded 35% returns, but since January 2025, they’ve declined 28%,” said Trivesh.
Direct investment in stocks can give better returns but with greater risk. “Rs 1,000 might not be sufficient to make a diversified portfolio. This makes risk management a problem. Besides, direct investment in the stock market needs thorough understanding and continuous watch. Volatility in the market can result in short-term losses, which first-time investors may not be able to cope with,” he added.
If you don’t have time to study/research stocks, mutual funds are a viable alternative.
Choti SIPs have simplified investing and promoted financial literacy. “Mutual funds enable monthly investment with a small sum. Fund managers take care of stock selection, making them an easy choice for beginners,” said Trivesh.
Disclaimer: The opinions, views, suggestions, and recommendations made by the experts/brokerages in this article are those of their own and not those of the BuildYourFinance. It is suggested that a competent broker or financial expert should be consulted prior to making any actual investment or trading decisions.