You don’t need a lot of money to invest in stocks. You just don’t.
Fractional shares let you invest with a specific dollar amount, as low as £1, instead of needing enough money to cover the entire share price. It’s a game-changer in investing, allowing even those with smaller budgets to build diversified portfolios.
Assuming you use a broker that offers fractional share trading, you’re then free to build a portfolio according to your goals and risk tolerance.
If you’re a beginner, targeting stocks that combine stability and growth potential might be a wise decision as you build a foundation of investing knowledge. There’s also some merit in learning through risk, so you shouldn’t discount riskier investments either.
Here are the best stocks for beginners with little money and tips on making the most of your limited capital as you start investing.
These stock ideas are tailored for novice investors with limited capital.
Growth stocks are shares in companies that are expected to grow at a faster rate than the average stock in the market. These stocks are characterised by several distinct features:
While these stocks can offer significant growth, their high valuations, volatility and market sensitivity increase your risk.
Examples of growth stocks include:
| Stock | Icon | 1-year performance (to Jun. '25) | 5-year performance (to Jun. '25) | Link |
|---|---|---|---|---|
| NVIDIA Corporation (NVDA) |  |
10.20% | 299.75% | Invest Capital at risk |
| Alphabet Class A (GOOGL) |  |
1.25% | 151.04% | Invest Capital at risk |
| Meta Platforms (META) |  |
37.70% | 203.67% | Invest Capital at risk |
| Netflix (NFLX) |  |
86.74% | 191.79% | Invest Capital at risk |
| Amazon.com (AMZN) |  |
15.98% | 67.54% | Invest Capital at risk |
For beginners with little money, growth stocks offer these benefits:
Why growth stocks are good for beginners with little money
Growth stocks offer the potential for significant returns through capital appreciation.
Blue chip stocks are renowned for their stability, reliability and long-standing performance in the stock market, making them a compelling option for beginner investors with limited funds.
These stocks represent shares of well-established, financially sound companies with a history of strong performance and leadership in their respective industries.
Blue chip companies typically have large market capitalisations, established brand names and a track record of generating consistent profits and dividends over time.
Examples of blue chip stocks include:
| Stock | Icon | 1-year performance (to Jun. '25) | 5-year performance (to Jun. '25) | Link |
|---|---|---|---|---|
| Microsoft Corporation (MSFT) |  |
7.03% | 151.74% | Invest Capital at risk |
| Apple (AAPL) |  |
-5.40% | 139.28% | Invest Capital at risk |
| Unilever PLC (ULVR) |  |
5.55% | 7.74% | Invest Capital at risk |
| Walmart (WMT) |  |
43.63% | 144.10% | Invest Capital at risk |
| Rolls-Royce Holdings PLC (RR) |  |
90.33% | 694.93% | Invest Capital at risk |
For beginners with little money, blue chip stocks offer several advantages:
Why blue chip stocks are good for beginners with little money
They’re great options due to their stability, dividend income, ease of research and long-term growth potential.
Dividend stocks represent shares of companies that regularly distribute a portion of their profits to shareholders in the form of dividends.
These dividends provide investors with a steady stream of passive income, making dividend stocks particularly appealing for beginner investors looking to grow their wealth over time.
Examples of dividend stocks include:
| Stock | Icon | 1-year performance (to Jun. '25) | 5-year performance (to Jun. '25) | Link |
|---|---|---|---|---|
| Legal & General Group PLC (LGEN) |  |
11.27% | 13.34% | Invest Capital at risk |
| HSBC Holdings PLC (HSBA) |  |
28.19% | 129.79% | Invest Capital at risk |
| GlaxoSmithKline PLC (GSK) |  |
-5.11% | -5.71% | Invest Capital at risk |
| Johnson & Johnson (JNJ) |  |
6.74% | 9.22% | Invest Capital at risk |
| City Of London Investment Trust (CTY) |  |
16.43% | 44.67% | Invest Capital at risk |
For beginners with little money, dividend stocks offer these benefits:
Why dividend stocks are good for beginners with little money
They’re a good option due to their income-generating potential, stability and long-term growth prospects.
Index funds are exchange-traded funds (ETFs) or mutual funds that aim to replicate the performance of a specific market index, such as the S&P 500 or the Nasdaq.
Instead of trying to beat the market, index funds passively track the performance of the underlying index by holding the same stocks in the same proportions.
And because these funds are passively managed, their fees are significantly lower than actively managed funds. The average expense ratio for index equity mutual funds was 0.05 percent in 2024, compared to 0.64 percent for actively managed mutual funds.
Examples of index funds include:
| Stock | Icon | 1-year performance (to Jun. '25) | 5-year performance (to Jun. '25) | Link |
|---|---|---|---|---|
| Vanguard FTSE 100 ETF (VUKE) |  |
7.39% | 45.31% | Invest Capital at risk |
| SPDR S&P 500 ETF Trust (SPY) |  |
10.86% | 97.68% | Invest Capital at risk |
| Amundi Stoxx Europe 600 ETF C GBP (MEUD) |  |
9.19% | 70.17% | Invest Capital at risk |
| iShares Core MSCI World ETF USD (Acc) (SWDA) |  |
7.47% | 82.95% | Invest Capital at risk |
Stocks with smaller share prices can be an attractive option for beginner investors, especially those using platforms that don’t offer fractional shares.
These investments often come with a lower upfront cost, making it easier to own full shares and build a diversified portfolio without needing deep pockets.
While a lower share price doesn’t always reflect a company’s value or potential, these stocks can offer a more accessible entry point into the market if you’re investing on a budget. However, always remember to factor in any additional commission fees, even if you’re investing a small amount.
Examples of stocks with smaller share prices include:
| Stock | Icon | 1-year performance (to Jun. '25) | 5-year performance (to Jun. '25) | Link |
|---|---|---|---|---|
| Lloyds Banking Group PLC (LLOY) |  |
38.34% | 138.21% | Invest Capital at risk |
| Ford Motor Company (F) |  |
-10.72% | 65.02% | Invest Capital at risk |
| INVESCO (3IW) |  |
-7.38% | 45.80% | Invest Capital at risk |
Index funds provide several benefits:
Why index funds are good for beginners with little money
They’re a good option due to their diversification, affordability, simplicity and long-term growth potential.
Fractional shares make it easier for everyone to invest in the stock market, regardless of how much money they have, by allowing the purchase of partial shares instead of the whole ones. This lets you buy into expensive stocks with specific dollar amounts, as low as £1, rather than needing to afford entire shares, making it particularly beneficial for beginners looking to diversify their portfolios without a large initial investment.
Additionally, fractional shares offer flexibility and precision, letting you build and tailor your portfolio to match your investment goals and risk tolerance and allocate your funds exactly how you desire. Examples of brokers that offer fractional share trading include SoFi Invest®, Robinhood and Charles Schwab.
Why fractional shares are good for beginners with little money
Fractional shares are a game-changer for beginner investors with limited funds, allowing them to participate in the stock market and build wealth over the long term, even with small initial investments.
Follow these four steps to buy stocks online:
Growth stocks, blue chip stocks, dividend-paying companies and index funds are top choices for beginner investors with limited funds. Accessibility, diversification, stability and growth potential make these options ideal for building a strong investment portfolio, setting the stage for long-term financial success.
Whichever you choose, the best brokerage accounts will give you commission-free access to all these beginner-friendly investment options.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
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