Micro-investing is a type of

investment strategy In finance, an investment strategy is a set of rules, behaviors or procedures, designed to guide an investor's selection of an investment portfolio. Individuals have different profit objectives, and their individual skills make different tactics ...

that allows individuals to invest small amounts of money regularly over time.

Background

Micro-investing is designed to make investing more accessible and affordable, especially for those who may not have a lot of money to invest or who are new to investing. The idea of micro-investing has been popularized and made more accessible through the rise of financial technology (

fintech Financial technology (abbreviated as fintech) refers to the application of innovative technologies to products and services in the financial industry. This broad term encompasses a wide array of technological advancements in financial services, ...

) companies such as Stash, Robinhood and Acorns. These companies have made it possible for individuals to invest even small amounts of money regularly. The goal of the technology is to help people invest small amounts of money easily, regularly, and affordably with the intent of democratizing access to

financial services Financial services are service (economics), economic services tied to finance provided by financial institutions. Financial services encompass a broad range of tertiary sector of the economy, service sector activities, especially as concerns finan ...

& products that have historically only been available to the wealthy. This Fintech innovation allows many micro-investing platform users to invest very small amounts of money, such as a few cents or dollars, and these small investments can accumulate over time to build up a larger portfolio.

References

Investment management Investment {{Investment-stub