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

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    What are your thoughts?

    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....

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      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 !

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        Alex Chua

        Alex Chua

        27 Jun 2019

        Level 9ยทSeedly student Ambassador 2020/21 at Seedly

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

        1. be prepare to lose that amount.
        2. Do your own r...

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