Should I begin buying stocks if I have low capital, (approx.1K)? Or should I use it for other investments like P2P lending and stuff?

Just do it if you want to but whatever you do,

1. be prepare to lose that amount.
2. Do your own research before going truly jump in

If you are planning to buy stock, I would against buying individual stocks, due to potential high cost of entry in comparison with 1k. It will take a longer time to offset the commision fees. Furthermore, the diversification is very limited. Instead, I would strongly advise buy etf (STI or go into robo-advisors). How? split $50-$100 over a year. Avoid putting a lump sum. WHY?

1. You are well-diversified by buying the above instrument and through dollar-cost averaging
2. The fee to start is low
3. ETF serves as a good core for you to start your investing and start researching more about stocks

In regard to p2p lending, it does have its own advantage of shorter term loan, from as lower as 30 days to longer than a year. This is such that you can plan out to withdraw anytime you need. Of course, I would strongly discourage you to do so as this defeats the purpose of investing.

How you go about P2P lending?

I suggest you first research and choose one that you trust the most or suits your needs or level of confidence.

Start by putting the minimum sum and 5 - 10 loans. Familiarise with the platform. If you dislike the idea of p2p lending, you can withdraw anytime. If you want to continue, start planning a game plan and follow strictly to it. For example, ensure that you have X amount (ie $200) so that you can withdraw it out anytime. Or set the minimum number of loan you provide. How most people play is put in the minimum sum with auto-invest and stay true to that. Often, opt-out if you are uncomfortable with the loan.

In my opinion, P2P lending do give you the necessary flexibility.

There's two different questions and not much background info. Low capital is only one part and there could be a ton of other factors that influence the decision.

Is 1k all you have? Do you owe money? Do you need to use the 1k if you need to buy food or a new hp? Do you have emergency funds?

The second part is investing and which tools / instruments / platforms. What is your risk level, and time horizon if you invest all of the 1k?

If you have no emergency funds and would actually need to use the 1k if you need to buy textbooks or a new hp, then the best advice is prob do nothing and keep it as emergency reserve.

Between p2p and other investments, it depends.on your comfort and risk tolerance. Can you take it if the p2p loan defaults and you lose all or some of the money?

If you get invested in index or shares, can you go long term and not withdraw the 1k for a while? Because there are fees to buy or to sell, and with 1k, the fees will be a high % of your capital, and you might not get good returns after deducting the applicable fees. And index or shares will take some time before the compounding shows good results....

Overtime as you work and save, you'll have more capital.

Meanwhile, the highest lowest risk highest returns Investment you can do is:

Sign up for one or few class in your field with exam that gives you a professional body recognize certificate. Combine with skillfuture $500 credits if you have yet to use.

Google all the job boards, see the next level jobs of what you do and the salary and look for the certificate that needed, usually those with professional bodies and exam with membership that needs to maintain.

With that , you upkills and can gain higher pay employment that you get to enjoy for long, plus increase incomes means able to save more to invest in the future.

That would be the best investment with the highest returns and lowest risk!

Cheers 😃👌

Hey there, so I'm in the same boat as you actually, started off with about 2k in May 2019, then threw in abit more after working and getting paid.

I'd say nothing wrong with buying stocks with low capital! Yes the commission will bite your ass but that is only in the short term, if you are planning to invest for the long term, just get in there and start learning more about investing. Learn what is your actual risk appetite, can you stand watching 10% of your portfolio disappear in a matter of days or weeks?
Personally I invested in the STI ETF for 2 months and decided to sell them off as I feel like I could do more with the money I put in, but one man's trash is another man's treasure! There is no right or wrong way to invest, just stick to what you are comfortable with!

Good luck with your investing journey man !