How to buy expensive stock with limited money?

Fractional Trading | Image Resource: investopedia.com

Fractional investing allows you to buy a portion of a share rather than the whole share. This allows you to buy a portion of expensive stocks. It offers a good way for those investors who want to invest in a particular company but have limited funds and cannot afford to buy the whole share.

Fractional investing allows you to buy ½ or ⅕ of the whole share. This gives the investors access to expensive stocks and they can diversify their portfolio with small investments. Currently, the law does not allow fractional trading in Indian stocks.

The main benefit of fractional investing is that it gives you access to esteemed companies with limited funds. Fractional investing allows you to buy multiple high-priced stocks and this helps in the diversification of the portfolio thus reducing the risk involved.

Investing in fractional shares
Using the online trading app Indian investors can open US brokerage accounts. They have to complete the required verification procedure. They have to follow RBI’s Liberalised Remittance Scheme (LRS) for investing money. Indian investors can invest up to Rs. 1.75 crore in US stocks.

Fractional investing gives you an option to invest in high-priced stocks but you should also understand the associated risk involved. Trading in fractions also carries brokerage commission fees which can reduce the value of returns. Brokerage companies charge per transaction and higher transactions could cost more.

Using an online app for fractional investing
The app allows you to buy fractional shares in global markets. This allows you to invest small amounts in the stocks of the top companies in the world. You can invest as much money as your budget allows. You can start investing with an amount as small as Rs. 1.

Holders of fractional shares do not get voting rights for the fraction of the share they own. Until they own one whole share they do not get voting rights.

To use the app first download the app. To open an account on the app you have to go through the sign-up process which is followed by a single digital KYC process. You can open a trading account as well as a savings account on the app. The digital KYC process is a must and without it, users cannot perform transactions.