What is fractional share investing?

Oftentimes, when one mentions investing, what comes to mind first is that you need a lot of money to start with. Not anymore.

The investing that I am talking about is the one where you buy shares or equities of a company.

In the old day, when Ben Graham and Warren Buffett used was the one where one needed a large sum of money to invest. This means that you needed to have a good job wherein you earn enough to be able to put money aside for investing. nowadays, you start investing with as little as 1 rand.

The internet has decentralized many things including investing.

Today, you no longer need a lot of money to start investing. But, you need a curious mind, and the willingness to learn.

So the kind of investing I am talking about here is the one that does not need 100 hundred thousand to start with.

Fractional share investing allows you to buy a portion of a full share. For example, if a share price is R 100, with fractional share investing you are able to buy a certain percentage of a full share.

This gives you the opportunity to start small. You don’t have to buy a full share but you can buy half a share and then later buy more percentage until you have a full share. It’s important to remember that even if you own a fraction of a share when the company you have invested in pays out dividends you also get paid.

Let’s take the above example; if a share price is 100 hundred, you can buy with 50 rands and own 0.005 /50% ( whatever points) percentage of the whole share and then later put another 50 rands thus have a full share. You can do this for months or whenever you have money to put away until you have 10 shares or what amount you wish to own.

Investing strategies, but, have not changed. The only that changes are that now there is more access to investing opportunities.

You can open an investment account investment brokerage that supports fractional share buying.

There are many Apps which one can choose from to start buying shares/equities.

The trick in investing is to start as early as possible.

Note: I am not a financial service provider thus this is not a piece of financial advice.