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How To Invest $200 In Stocks?

February 16, 2024

Even if you just have a tiny sum of money to invest, you may start doing so. Some sorts of investments can be started with as little as $200. If you make it a habit, your tiny contributions will soon build up to significant sums.

Stocks

If you have $200 to invest, buying stocks may result in significant gains. You could be able to purchase multiple shares of a corporation with this sum of money or only one or two shares of more costly stock. You may be eligible to receive dividend payments from the businesses that issued the shares if you invest in stock. Your initial investment might be multiplied many times if the firm's values rise.

Dividend Reinvestment Program

Participating in a dividend reinvestment program or a direct stock purchase program is one of the finest methods to invest $200. With either of these schemes, you may avoid using a broker and buy shares directly from the firm that issued them. 

By choosing this option, you may invest the entire $200 in stock without having to pay broker fees. When you have a dividend reinvestment plan, you automatically utilize the money from the company's dividends to acquire more stock.

Investment funds/ Mutual Funds

Purchasing shares in a mutual fund is another possible option to invest $200. Some mutual funds are still accessible at this level, despite the fact that many have higher minimum investment requirements. 

You may also create an automated investing plan that enables you to make a fixed monthly contribution to a fund. You may access expert money management and a diversified portfolio with mutual funds, which can produce respectable returns over the long run.

Small Businesses

Investing in a side project for your small business is an additional choice you may think about. You can consider utilizing that $200 to launch a profitable business rather than purchasing stocks of any type with it. 

For instance, you might utilize the $200 to launch a website and begin producing content with the intention of attracting visitors. Afterward, you may charge for online advertising. Small company investments frequently provide higher returns than investments of the same price.

If you want to learn more about these topics, here’s an article about the best stocks to buy for beginners.

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