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Where to invest my first Rs. 1000? – 5 Investment options you can choose from

1000rs investment options

One of the best parts about investing that you should know is that you don’t need a lot of money to start investing.

You can start investing from as low as Rs. 100.

Though the percentage of returns you will get from these investments are the same, the return amount maybe a little less.

Therefore Rs. 1000 is considered to be a decent amount to start investing.

In this article, you will get to know about some of the best investment options where you can start investing from as low as Rs. 1000.

Here are five places where you can invest your first Rs. 1000:

  1. Stocks
  2. Mutual Funds
  3. Public Provident Fund
  4. Recurring Term Deposits
  5. National Saving Certificate

Now let’s see how to invest in these investment options…

1. Stocks

Investing in stocks is considered one of the best investment options in India as well as in other parts of the world.

Nowadays it is extremely easy to open a Demat account and start trading in the stock market.

stock market investing

There are a number of apps available like Groww, 5Paisa, etc. that allow you to open a paperless trading and Demat account.

Here you can start investing in stocks from as low as Rs.100.

Click to see the list of some of the best apps you can use to invest in stocks.

However, the stock market is a risky investment option and you need to do proper research about a stock before investing in it to get good returns from it.

2. Mutual Funds

Another good investment option in the Indian market is mutual funds.

All the mutual funds cannot if you exceptional high returns that you can get in stocks, they can give you a good amount of returns.

You can invest in mutual funds in two ways monthly SIP and one-time investment.

mutual funds

You can start investing via monthly SIP of Rs. 500.

One-time investment can be done from a minimum of Rs.5000.

One of the best ways to do so is by investing in direct mutual funds via Groww App. This app helps you to easily start investing in Mutual funds without any commission. So you get 1-2% more returns.

You can know the difference between Regular and Direct Mutual funds in this article.

Some other apps that you can use to invest in Mutual funds are:

  1. ET Money
  2. PayTM Money
  3. myCAMS

3. Public Provident Fund

A Public Provident Fund, also known as PPF is another investment option where you can invest your first Rs. 1000.

This investment option has a low risk and will give you an interest rate of 7.1 % per annum.

A Public Provident Fund is backed by the Government of India and you can even claim an Income Tax deduction up to Rs. 1.5 lacs per annum under section 80c of the Income Tax Act, 1961.

indian rupees

You can easily start investing rupees 1000 every month in your PPF account and get good interest from it.

However, one thing you should keep in mind is that a Public Provident Fund has a lock-in period of 15 years. So you can redeem your money only after 15 years.

4. Recurring Term Deposits

Many banks in India offer a type of deposit known as Recurring Term Deposit.

This allows you to invest a fixed amount every month and earn interest applicable by the bank. The rate of interest generally varies from 3 to 9 % per annum.

Though the return percentage is not as high as stocks on mutual funds, this is one of the best ways to invest your money risk-free.

You can easily start investing in Recurring Term Deposits from as low as Rs. 1000 a month.

5. National Saving Certificate

The National savings certificate or in NSC is another Government of India initiative that offers you complete capital protection and assured interest.

Currently, this scheme is offering an interest of about 6.8% per annum for 5 years

You can buy this national saving certificate from any public sector bank or three private banks, namely, ICICI bank HDFC bank, and Axis Bank.

You can claim tax exemption on the amount you have invested in NSC under 80c of the income tax act 1961. The limit for this is 1.5 lacs in a year.

These are some of the places where you can invest your first Rs. 1000.

Happy Investing!

(Disclaimer: Please note that investments are always subjected to market risk. The information is for educational purposes only. Some of the links on this site are affiliate links. This means whenever you buy/install something using the links, you help support this website at no extra cost.)