In 2025, you don’t need a big bank account to invest. Fractional investing lets anyone buy pieces of stocks, real estate, or even art. It’s perfect for beginners or those with small budgets. Here’s how to start building a portfolio, no matter how much you have.
What Is Fractional Investing?
Fractional investing means buying part of an asset. Can’t afford a $200 stock? Get a slice for $5. It’s like splitting a pizza—you still get a taste. Apps make this easy by pooling money from lots of people. In 2025, platforms like Robinhood, eToro, and Public offer fractional shares of stocks and ETFs.
Why It’s Great for Small Budgets
You can start with almost nothing. Got $10? Buy bits of Apple, Tesla, or an index fund. You still earn dividends and growth, just on a smaller scale. It’s flexible, too. Add $5 a week or $50 a month—whatever fits. In 2025, over 30% of new investors use fractional shares, per a Fidelity report.
Step 1: Set a Goal
Decide why you’re investing. Want to save for a car? Retirement? A house? Goals keep you focused. If you’re new, aim small—like $100 in three months. Even $1 a day adds up to $365 a year.
Step 2: Pick a Platform
Choose an app that’s easy and cheap. Popular ones in 2025 include:
- Robinhood: No fees, great for stocks.
- Public: Good for learning, no minimums.
- eToro: Mixes stocks and crypto. Most have no or low fees, but check for hidden costs. Download one and try it with $10 to learn.
Step 3: Start with Stocks
Stocks are a solid first step. Fractional shares let you buy into big names. In 2025, index funds like the S&P 500 are safe bets—they grow about 6% a year over time. Put $20 into an ETF like VOO. You’ll own a piece of 500 top companies. Spread money across a few stocks to lower risk.
Step 4: Explore Other Options
Fractional investing isn’t just stocks. Try these:
- Real Estate: Platforms like Fundrise let you invest in properties for $10. You earn rent and growth.
- Crypto: Buy bits of Bitcoin or Ethereum on Coinbase. Keep it under 5% of your money—it’s risky.
- Art: Masterworks sells shares of paintings. $50 gets you in, but it’s harder to sell. Mix a few types to balance your portfolio. Start with stocks, then add one other.
Step 5: Keep Adding Money
Invest regularly, even if it’s small. Set up auto-deposits—$5 a week works. In 2025, apps remind you to save. Over time, your portfolio grows. A $10 monthly investment at 6% could hit $2,000 in 10 years.
Step 6: Watch Out for Risks
Investing isn’t a game. Stocks can drop. Crypto can crash. Only use money you can spare. Research before you buy—check X for user reviews or read Yahoo Finance. If an app pushes “hot tips,” be careful. Stick to basics like index funds for safety.
Step 7: Learn and Adjust
Read simple investing guides. Watch YouTube explainers. Free courses on Udemy cover stocks and ETFs. Every few months, check your portfolio. Are you earning? Need more real estate? Shift money if it makes sense.
Why 2025 Is the Time to Start
Fractional investing is bigger than ever. New apps make it simple. Interest rates are steady, and markets are growing slowly, per 2025 Bloomberg data. You don’t need $1,000—just $1. Everyone can build wealth now.
Final Tip
Start today. Open an app. Put in $5. Buy a piece of a stock. Watch it grow. Fractional investing lets you learn without stress. Your budget doesn’t limit you—your choices do.