How can I invest without a lot of money?

Hi there,

Your Gran has asked about how to invest without a lot of money. Luckily for you, this is now more possible than ever, with lots of helpful apps around.

Investing has become a lot more accessible in recent years, with many providers now allowing you to open an account and get started with as little as £1. Check out our shortlist of the top UK investment platforms that let you open an account with the lowest amounts.

She doesn’t say how old you are. If you're under 18, then consider a Junior ISA. You need to get Mum or Dad or your guardian to open it for you, but then Gran and others can pay in, so it can be something to ask for at Christmas time/birthdays too.

Once you've opened your account, you don't necessarily need to fill it with a large lump sum. Regular investing - that is, drip-feeding a set amount on a regular basis - can be a great way to start and keep your costs low. Some providers offer lower transaction fees if you set up a direct debit or standing order. Plus, by slowly growing the amount in your account over time, you'll also benefit from the snowball effect of compounding.

If you’re really new to this, could you consider starting with, say, £10 a month, and just see how that feels for a year or so. Find your feet first. The most important thing is just to start and get used to it.

As for what sort of assets to put in your portfolio, it really depends on your investing goals, time horizons and risk tolerance. However, if you've got a smaller pot and you want to minimise costs, passive funds and ETFs often charge lower ongoing fees than actively managed or more specialist products.

You could consider picking a global passive fund – the best-selling option on retail platforms is the Fidelity World Index Fund. Cheap and easy. Or maybe buy a single ETF – again, a global option allows you to buy one product and access 100s of global companies under this single bonnet.

Finally, you may consider a robo adviser which does all of this for you. Have a look at the shortlist we mentioned above and see what feels right for you.

These are just some general pointers, but the bottom line is to focus on keeping your costs low and consistency. As always when it comes to money matters, if in doubt, get professional advice before making any decisions. Or at least check in with Gran or someone who’s been there, done that and got a bit more investing experience.

Try to avoid being too flashy – all the fancy stuff which goes viral on TikTok is probably a bit dodgy really and only make the influencers money, not you.

Hope this helps!