Investing in lesser-known small-cap companies can offer significant growth potential, especially if you’re working with a limited budget, as these stocks often trade at lower prices.
However, they come with higher risks, including volatility and less financial stability than well-established companies.
Sticking with blue-chip stocks offers reliability and steady returns, making them safer for risk-averse investors.
Consider buying fractional shares (if your broker supports it) to invest in well-established companies without the capital to purchase a full share.
Many brokers now offer fractional trading, enabling you to allocate smaller amounts of money to high-value stocks like Amazon or Apple, diversifying your portfolio even with a limited budget.
This approach combines the reliability of blue-chip stocks with affordability.
Fractional shares are ideal if you’re looking to test the market or build a diversified portfolio over time without committing large sums upfront.
Good luck!
