The ₹500 Stock Market Challenge: How to Start Investing With Pocket Change

Published On: 22/06/20251.9 min read

💸 The ₹500 Stock Market Challenge: How to Start Investing With Pocket Change

“You don’t need to be wealthy to start investing. You need to start to become wealthy.”

🚀 Why This Matters

Many Indians still believe that investing in the stock market is a game for the rich. But in reality, even ₹500 is enough to take your first step toward financial freedom. With easy-to-use mobile apps, zero brokerage options, and simplified KYC, starting has never been easier.

If you’re a student, young professional, or someone trying to build a savings habit — this challenge is made for you.

💼 What Can You Do With ₹500?

1. Buy ETFs (Exchange Traded Funds)

ETFs are one of the smartest ways to start with a small amount. They track indices like Nifty or Sensex and offer instant diversification.

Examples under ₹500/unit:

  • Nippon India Nifty Bees (~₹220)
  • ICICI Prudential Sensex iWIN ETF (~₹340)
  • Kotak Nifty Next 50 ETF (~₹120)

With ₹500, you can easily buy 1–2 units and build your portfolio monthly.

2. Start a SIP in Mutual Funds

Many direct mutual fund platforms like Groww, Zerodha Coin, and ETMoney allow you to begin SIPs from just ₹100/month.

Recommended beginner-friendly funds:

  • UTI Nifty Index Fund – Direct Plan
  • HDFC Small Cap Fund – Direct Plan

This method is hands-free, low risk, and ideal for beginners.

3. Buy Individual Stocks Under ₹500

You can buy shares of some well-known and stable companies priced under ₹500.

Example stocks under ₹500 (as of June 2025):

  • ITC (~₹450)
  • SBI (~₹460)
  • Rail Vikas Nigam Ltd (RVNL) (~₹330)
  • Bank of Baroda (~₹240)

Disclaimer: Stock prices are volatile. Do your own research or consult an advisor.

📊 How Much Can ₹500 Grow?

Let’s assume you invest ₹500 every month for 10 years in an index mutual fund with an average annual return of 12%.

  • Total Investment: ₹60,000
  • Estimated Value: ₹1,11,613

📈 You gain over ₹50,000 just by staying consistent!

🏁 Your 3-Step Challenge

  1. Open a free demat account with any trusted broker like Zerodha, Groww, Upstox, or Paytm Money
  2. Pick one ETF or mutual fund and invest ₹500 monthly
  3. Track your progress monthly and share your experience online to inspire others

🎯 Final Thoughts

Investing is more about habit than capital. The ₹500 challenge proves that even a small commitment can lead to big financial changes. The best day to start was yesterday. The second-best is today.

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