How can I invest without a lot of money?
22 July, 2025
Question by Sally
Many thanks for explaining the terms used (e.g. ETF) in investing and what they are doing. Next, a question for our Grandson - how to invest without a lot of money. Appreciate your help.
Answered by Boring 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 lowerA charge imposed by an investment platform for executing a trade within an investment account. 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 When you earn interest not just on your original savings, but also on the interest you've already earned. It's like earning interest on your interest. Over time, this creates a snowball effect and is one of the most compelling arguments for long-term investing. While it's often explained using interest on cash savings, compounding also applies to investment gains like dividends and capital growth..
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 Anything you own that has monetary value. In the investing world, these are the individual things you're investing in. Common examples of assets include shares, bonds, property or cash. to put in your An investor's total collection of investments, such as all the shares, bonds and funds they own., it really depends on your investing goals, Time horizon refers to the length of time an investor expects to hold an investment before they intend to sell it. and The extent an investor is willing to endure fluctuations in the price of their investments.. However, if you've got a smaller pot and you want to minimise costs, Investment funds that automatically follow a market index or set of rules without a manager actively picking investments. They aim to match the performance of their chosen benchmark rather than trying to beat it, typically offering lower fees than actively managed funds. funds and ETFs often charge lower The total cost of holding an investment over the course of one year. It typically includes the management fee and other charges. 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!
