Micro-investing explained

Micro-investing is a type of investment strategy that allows individuals to invest small amounts of money regularly over time.[1]

Background

Micro-investing is designed to make investing more accessible and affordable, especially for those who may not have a lot of money to invest or who are new to investing.[2]

The idea of micro-investing has been popularized and made more accessible through the rise of financial technology (fintech) companies such as Stash,[3] Robinhood and Acorns.[4] These companies have made it possible for individuals to invest even small amounts of money regularly.[5]

The goal of the technology is to help people invest small amounts of money easily, regularly, and affordably with the intent of democratizing access to financial services & products that have historically only been available to the wealthy. This Fintech innovation allows many micro-investing platform users to invest very small amounts of money, such as a few cents or dollars, and these small investments can accumulate over time to build up a larger portfolio.[6]

Notes and References

  1. News: Gravier . Elizabeth . The top 4 investing apps to help newbies and experts build their wealth from anywhere . 20 April 2023 . CNBC . 1 April 2023.
  2. News: Sinha . Sanjeev . Micro-investing allows investors to invest with as little as Rs 1: Ronit Harisingani . 3 May 2023 . Financial Express . 12 April 2023.
  3. Book: Brooks . Ernest H. . Pandemics and Behavior Finance Control Wall Street Volatility . 30 July 2021 . Christian Faith Publishing . 9781098085896 . 20 April 2023.
  4. News: Jolly . Jennifer . Micro investing apps have been popular during the stock market's rise. Do they work when it dives? . 20 April 2023 . USA Today . 8 March 2018.
  5. News: Harisingani . Ronit . How are micro-investing apps encouraging savings amongst the new working population? . 20 April 2023 . The Times of India . 11 February 2023.
  6. News: Ahmed . Nabeel . Why are millennials, Gen Z, drawn towards micro-investing apps? . 20 April 2023 . The Hindu . 30 July 2022.