One of the most common reasons for individuals to not invest is the lack of funds or not knowing where or how to invest. There is no particular amount of money that is enough to invest or less to start investing. Consider a new concept in investing called ‘Change’ investing.

When it comes to investing it is suggested to start investing early to get maximum benefits. There is a new concept popular with the younger generation called ‘Change’ investing. In this, you can invest your spare change and start to invest with low amounts.

Change investing is based on the concept of micro-investing. It is based on advanced technology and is offered by fintech apps. The younger generation relies on digital payments for their daily transactions so this is an ideal way to invest for them.

The app allows the users to fix an amount called the round-up amount to the closest Rs. 10, 20, 50 and so on. When the users spend through the app the differential round-off amount is saved and collected till it reaches a target amount. Then these change savings are invested.

The target amount is invested in the asset class you choose from the options offered by the app. The app signals the users to invest in their chosen asset class and build a portfolio based on their risk profile.

The apps offer pre-selected investment options that are standard for every user on their platform. The apps invest in mutual funds, digital gold and more. The concept of investing along with spending is quite attractive.

Benefits of ‘Change’ investing

The main benefits of change investing are as follows:

• Change investing can help to inculcate the habit of saving from the start. It is based on the concept of a ‘Piggy bank’ that you may have used in your childhood. The small spare change was collected in the Piggy bank and this gave the satisfaction of saving money. Change investing focuses on investing the spare change when money is spent using the apps.
• Change investing helps to reinforce the idea that every penny counts. You can save small amounts of money and invest it. This makes the idea of investing popular with the people.
• Once you start earning it is usually the time to start planning for retirement. This way you can get the maximum advantage of compounding till the time of retirement. If you start early then you will be able to save a sufficient amount of money. If you plan for your retirement earlier then it will cost less when compared to starting later in life.
• One of the key features offered by the apps for change investing is the security of investments. Some of the apps invest in mutual funds while some invest in digital gold. The investment is kept safe and invested directly in the option chosen. It can be redeemed whenever required.

The author is a blogger and likes to blog about the various options available in the stock market. Currently, the author has explained change savings.