Here’s How You Can Build Your First Portfolio With Only $100

If achieving the million dollar mark in your savings is one of your goals, building your portfolio is one of the best ways to get started. Don't be discouraged that you only have USD100. Even the wealthiest investors today started small.

So now, let's start building your first investment portfolio.

This type of savings account lets you deposit money in an account with higher rates of interest as your return of investment. The usual savings account gives you only 0.06% in annual return. While a high-interest or high-yield savings account can give you around 0.55% in annual percentage yield. It will not make you rich quickly but this is where you can put your emergency fund.

If you want to build your first portfolio and start with a high-interest savings account, your local bank has offers for a certain minimum amount and interest rates.

A mutual fund is technically a pool of funds and money, managed by professional managers by investing it in diverse investments and assets to generate income. When a person buys a portion or share in a mutual fund, he is then considered an owner of a part of that mutual fund. If you want to build your first portfolio, this is one of the best ways to start because of higher returns for long-term investment.

Banks generally have their own mutual fund managed by experts, as one of their products. This pool of money from different investors are invested in bonds, equities, and other high-yield securities. Annual fees are charged so this is better for long-term investment.

If you are a beginner looking to invest as little as $100 to build your first portfolio, the stock market is the safest place to start. Decide on how you want to handle this investment - would you rather choose the stocks on your own and trade it yourself or would you rather find an expert to handle the whole process? Online brokers are available on the internet with minimal to no fees at all. You would just need to fund it with enough money to cover the price of the number of stocks you wish to own.

The cryptocurrency is one of the riskiest yet the most rewarding investments one would make. If you are a risk-taker and willing to build your first portfolio with cryptocurrency coins, then now is the best time to invest that spare $100 of yours. Trading platforms like Binance offer lower fees and peer-to-peer marketplace for trading. Just a little reminder that the market is volatile these days. Make the most of short-term trading with the most volatile coins for higher returns. 

Achieving your big and long-term goals start by taking small steps. When you start to build your first portfolio, it's better to start small so you'll get to know how the market works and identify the possible challenges along the way. The smaller the money involved for a beginner in any investment, the more tolerable the loss will be, if any. Your USD100 today can become a million dollars years from now, and you'll thank yourself for having the courage to take this first step!