A complete note on the Merits and Demerits of the micro-investing- Westeh Financial
Micro-investing exists with small amounts of money, invested by people periodically. This money allows small businesses or entrepreneurs to start their work that they are unable to do due to the lack of investments or funds. Additionally, Micro Investment works like a boon for people who want to do something big in their life but are unable to do so due to financial issues. However, the opportunity of micro-investment allows them to make their dream come true.
Benefits of small investments
These are:
Low minimum investments: With this approach, you can start investing a very little amount of money with a few dollars. You can commence investing in fractional shares of stock such as mutual funds and Exchange trading funds (ETFs).
Automatic investing: An automatic investment process allow people to stay with their plan in bad or good times.
Makes saving a habit: It will help you to build your habit of saving money whether you will save only a few dollars of money each month. After having this habit, you will always think when spending cash on items.
Diversification: If you select to invest in lower-rate exchange trading funds (ETFs) tied to broad market indexes, for example, S&P 500. It will help you to create your portfolio by investing a few dollars in a few months.
Limitations of small investments
Let’s explore:
Won’t lead you to retirement goals: Although micro-investment is an excellent way to save money, you cannot expect this money for your retirement period. You must have to save more to secure your retirement period. For this, you can invest in retirement plans such as some organisations offering this opportunity.
Need to save more than spare change: Many experts state that if you want to secure your retirement period you must save at least 10 to 20% of your income to live your old age life happily. You need to rethink saving a few dollars each month.
You can also invest in crowdfunding private equity if want to use this money for business purposes. You can also seek assistance from experts at Westeh Financial Solutions if have any financial needs or doubts about investment schemes.
