You can start investing with a small budget by using platforms that allow fractional investing or low minimum deposits. Start with index funds or ETFs to diversify at a low cost. Automate your investments and reinvest earnings to take advantage of compound growth over time.

Your risk tolerance depends on how much market fluctuation you’re comfortable with. Consider your income stability, age, financial goals, and how you react to market changes. If you prefer safety and steady returns, choose conservative options; if you can handle volatility for higher returns, you can take more risk.

Exchange-Traded Funds (ETFs) are investment funds that hold a basket of assets such as stocks, bonds, or commodities. They trade on stock exchanges like regular stocks, offering diversification, liquidity, and lower fees — making them a great option for both new and experienced investors.