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How to invest small amounts of money

by ARC IDEA CO

Created on: July 25, 2007

What is investing? It is such a catchy word that can catch the attention of money minded individuals. Investing comes in a wide range as well as spectrum of types and ways. In the currently context of investment arena, there are basically four types of investment:

1. Stock equities

2. Funds

3. Warrants

4. Bonds

5. Insurance / Regular saving

6. Foreign Exchange

However, the negative side of this coin is that all these investment instruments require thousands to start up. Especially money market, time deposit of foreign currencies require at least $50,000 to start up. However, it is not in the case of Mini-Forex account that works on margin trading between two stipulated currencies. But this is not consider as investing as it is very highly speculative in nature and is usually termed as gambling.

Well, not enough money to start investing? There is a solution for you. But you require at least $1,000 to start up. As you can see from the global market review, Asia market has the highest level of potential and emergence opportunity. So buy a regional fund like Asia except Japan and hold it at a minimum price of $1,000. Subsequently applied for a RSP or regular saving plan that stipulate to buy at least $100 worth of units monthly.

The advantage of capitalizing on RSP is that during volatile market movement, it tends to do a dollar-cost-average on a monthly basis for you. Conversely speaking, in a high trending market, it will collect these unit and stepping up the amount of profit for your fund.

It is such a win-win strategy to take when you are keen to invest but was limited by financial capacity.

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