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Investing starting from 1,000 won, is it really possible now? These days, salaries are staying the same, but prices keep rising, and don't you hear stories around you about someone hitting the jackpot with real estate or cryptocurrencies? So even if you decide to start investing, it's hard to get started without a lump sum. But it turns out there are actually many types of small-scale investments, and you can start quite easily with just 1,000 or 10k won.
First, let's talk about small-scale stock investments. Originally, you needed enough money to buy at least one share, but now you can purchase fractional shares like 0.001 shares. For example, if a stock costs 10k won per share, you couldn't dream of buying it before, but now with 10,000 won, you can buy 0.001 shares. Domestic securities firms started offering this service after September 2022. Of course, there are downsides like difficulty in real-time trading and slightly higher fees, but the big advantage is that you can gradually accumulate shares of good companies you're interested in.
Next, ETF investments are also great. Think of them as products that combine the benefits of stocks and funds. Since they bundle multiple stocks together, their volatility is much lower. There are ETFs that track indices like KOSPI or S&P 500, ETFs focused on specific sectors like technology or finance, and ETFs that gather high-dividend stocks. The variety of small-scale ETF investments is really diverse. They carry less risk than individual stocks but still aim for reasonable returns, making them my personal favorite.
There’s also REITs, or Real Estate Investment Trusts. They pool money from many people to invest in real estate like apartments, hotels, or offices, and distribute dividends from rental income. Actual real estate investments require huge initial capital and high taxes, but REITs have much lower burdens. Especially because they must distribute over 90% of their profits to investors due to corporate tax rules, you can expect steady cash flow. It’s a really good investment method for those wanting to create a second income.
Finally, there’s CFD trading, which involves investing based on price differences without actually buying or selling the underlying stocks. Even if you want to buy a stock worth 50k won, you only need to pay the difference, so you can start with much less money. You can also adjust leverage to aim for bigger profits. But be careful because losses can also be large. If you want to try CFD trading, using a professional platform is recommended. Platforms like Mitrade allow you to trade various investment products all in one place. Signing up takes less than a minute, and you can try trading for free first, so beginners can start without much burden.
In the end, since there are so many types of small-scale investments, you can choose the one that suits your personality and start. The great thing is that you don’t need a large lump sum; you can start gradually with just 1,000 or 10,000 won. Start right now!