For a $100 investment, the most recommended option is to purchase fractional shares of a diversified, low-cost Exchange-Traded Fund (ETF) that tracks a broad market index, such as the S&P 500. This approach provides instant diversification, reduces risk, and aligns with long-term wealth-building strategies favored by experts like Warren Buffett.
Novo Nordisk (NYSE: NVO), Comcast (NASDAQ: CMCSA), and AT&T (NYSE: T) are three excellent stocks you can add to your portfolio today and hang on to for not only this year, but for the long haul. Here's why these can be among the best buys under $100 right now.
If you deposit only $100 in an account with 5% interest, it will take 47 years to reach $1,000. However, you can build wealth more quickly by making regular $100 deposits. Following this method, you would accumulate $6,931 in your account after five years, nearly $1,000 of which would be pure interest.
If you invest $100 a month in good growth stock mutual funds at prevailing market rates from age 25 to 65, you'll end up with about $1,176,000. The secret isn't the amount. It's that you didn't miss a single month for 40 years. $100 can make you a millionaire when you're steady, predictable, and disciplined.
How To Turn $100 Into $500
The 7-3-2 rule is a wealth-building strategy highlighting compounding's power, suggesting it takes roughly 7 years to save your first significant amount (like a crore), then 3 years for the second, and only 2 years for the third, by increasing contributions and leveraging exponential growth as your money compounds faster. It emphasizes discipline in the initial phase, then accelerating savings as returns kick in, making later wealth accumulation quicker and more dramatic.
Six great ways to invest $100 starting today
You'll need a portfolio worth about $300,000 generating a 4% dividend yield to earn $1,000 in monthly passive income. Building a diversified collection of 20 to 30 dividend stocks across different sectors helps protect your income.
The growth of a $100 investment in Bitcoin
If you had invested $100 in Bitcoin 10 years ago, you would have about $20,000 today, as the leading cryptocurrency has grown by nearly 20,000% (as of Dec. 22). The S&P 500, on the other hand, delivered a total return of about 300% during the same period.
Renowned investor Warren Buffett has for decades spoken about the benefits of long-term, low-cost, fundamentals-based investing. The largest positions in the portfolio of his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) are Apple (NASDAQ: AAPL), American Express (NYSE: AXP), and Bank of America (NYSE: BAC).
A 24-year-old stock trader who made over $8 million in 2 years shares the 4 indicators he uses as his guides to buy and sell. One of Jack Kellogg's main indicators is the volume-weighted average price (VWAP). This shows the average price paid for shares and helps him gauge sentiment.
Flipping items from garage sales, thrift stores, or flea markets is a practical and hands-on way to make money. With $100, you can purchase undervalued or unique items that can be resold for a profit online. Look for vintage clothing, collectibles, furniture, or electronics that are in demand.
How to invest $1,000 right now — wherever you are on your financial journey
With shares up by only 3.7% over the last 12 months, Netflix (NASDAQ: NFLX) stock has deeply underperformed the tech-heavy Nasdaq Composite, which has risen by almost 18% over that time frame.
At $13 million per coin, the cryptocurrency will post a 151-fold return. That works out to a compound annual growth rate (CAGR) of 28.5%. And your $100 investment from 2025 would be worth $15,115 in this scenario. To be fair, those dollars won't be what they are today.
Despite extreme volatility, Bitcoin's price has skyrocketed 1,060% in the past five years as I write this. This monster gain would've turned a $10,000 initial capital outlay in October 2020 to a whopping $115,700 on Oct. 6.
The crypto reality check
Theoretically, A$1,000 invested when Bitcoin traded around 37 Australian cents in late 2010 could have grown to approximately $466.8 million by now. That's a whopping 46,682,249% return.
The 3-5-7 rule in stock trading is a risk management guideline: risk no more than 3% of capital on a single trade, keep total exposure to a maximum of 5% across all open positions, and aim for profit targets that are at least 7% of your risk (a 7:1 reward-to-risk ratio). It's designed to protect capital, encourage discipline, and ensure long-term profitability by preventing large drawdowns and focusing on consistent, controlled gains, making it popular for beginners.
The 7-5-3-1 rule is a simple investing framework for mutual fund SIPs that builds long-term wealth. It means seven years of discipline, five categories of diversification, and overcoming three emotional hurdles. Add one annual SIP increase to accelerate growth.
Making Rs. 5,000 a day in the share market is typically attempted through something called intraday trading (when we buy and sell stocks within the same trading session). Whereas long-term investing is based upon the fundamentals of a company, intraday trading is almost exclusively based on short-term price movement.
Three of the best bargains you can buy today come from the healthcare sector. AstraZeneca (NASDAQ: AZN), CVS Health (NYSE: CVS), and Pfizer (NYSE: PFE) are all trading at incredibly low valuations with respect to earnings, and you can buy their shares for less than $100 apiece.
If you can start as early as possible, stay in the market through the highs and lows, invest monthly and diversify, you can be on your way to becoming a millionaire. Forget the lottery, forget inheritance, forget business genius. Investing, when done right, is a sure path to wealth.
Yes, you can start day trading with $100, but success depends heavily on your trading strategy, broker, and discipline. Technically, many brokers accept $100 as a minimum deposit.