These days, you don’t need a lot of money to start investing in stocks. Say thank you to fractional shares, which let you buy pieces of shares from as little as £1, making it easier than ever to begin building yourself a diversified portfolio, even on a tight budget. In truth, they’re a gamechanger. But, not all platforms off them.
For beginners, it’s often smart to focus on stocks offering a balance of stability and growth potential, though taking small, calculated risks can also be part of the learning process. Below, we’ve highlighted some of the best stocks for beginners looking to invest with little money and tips on making the most of smaller amounts as you start investing. And, some of the best trading apps that let you buy fractional shares.
These stock ideas are tailored for novice investors with limited money to invest.
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 (especially if you’re not investing over a long time horizon).
Examples of popular growth stocks include:
Stock |
Icon |
1-year performance (to Jun. '25) |
5-year performance (to Jun. '25) |
Link |
|---|---|---|---|---|
| NVIDIA Corporation (NVDA) |  |
13.65% | 288.31% | Invest Capital at risk |
| Alphabet Class A (GOOGL) |  |
-7.23% | 133.94% | Invest Capital at risk |
| Meta Platforms (META) |  |
37.91% | 185.75% | Invest Capital at risk |
| Netflix (NFLX) |  |
79.47% | 171.40% | Invest Capital at risk |
| Amazon.com (AMZN) |  |
10.90% | 56.78% | Invest Capital at risk |
For beginners with little money, growth stocks offer these benefits:
Why growth stocks are good for beginners with little money:
The key reason is that growth stocks offer the potential for significant returns through capital appreciation (each share becoming worth more over time as the company becomes more valuable and people are willing to pay more for the stock).
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.
The term “blue chip” actually comes from poker, where the blue chips represent the highest value. The last thing prospective investors need to think is that investing is akin to gambling, but it’s just a turn of phrase.
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 popular blue chip stocks include:
Stock |
Icon |
1-year performance (to Jun. '25) |
5-year performance (to Jun. '25) |
Link |
|---|---|---|---|---|
| Microsoft Corporation (MSFT) |  |
6.14% | 144.63% | Invest Capital at risk |
| Apple (AAPL) |  |
-3.13% | 129.90% | Invest Capital at risk |
| Unilever PLC (ULVR) |  |
2.75% | -1.64% | Invest Capital at risk |
| Walmart (WMT) |  |
41.54% | 140.60% | Invest Capital at risk |
| Rolls-Royce Holdings PLC (RR) |  |
89.10% | 680.21% | 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 popular dividend stocks include:
Stock |
Icon |
1-year performance (to Jun. '25) |
5-year performance (to Jun. '25) |
Link |
|---|---|---|---|---|
| Legal & General Group PLC (LGEN) |  |
9.95% | 14.98% | Invest Invest Capital at risk |
| HSBC Holdings PLC (HSBA) |  |
26.80% | 121.49% | Invest Capital at risk |
| GlaxoSmithKline PLC (GSK) |  |
-12.29% | -16.20% | Invest Capital at risk |
| Johnson & Johnson (JNJ) |  |
0.70% | 4.14% | Invest Capital at risk |
| City Of London Investment Trust (CTY) |  |
15.44% | 39.06% | Invest Capital at risk |
For beginners with little money, dividend stocks offer a range of benefits:
Why dividend stocks are good for beginners with little money
Simply put, they’re a good option due to their potential to generate passive income, portfolio 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 popular index funds and ETFs include:
Stock |
Icon |
1-year performance (to Jun. '25) |
5-year performance (to Jun. '25) |
Link |
|---|---|---|---|---|
| Vanguard FTSE 100 ETF (VUKE) |  |
6.63% | 38.11% | Invest Capital at risk |
| SPDR S&P 500 ETF Trust (SPY) |  |
9.14% | 92.55% | Invest Capital at risk |
| Amundi Stoxx Europe 600 ETF C GBP (MEUD) |  |
8.66% | 59.79% | Invest Capital at risk |
| iShares Core MSCI World ETF USD (Acc) (SWDA) |  |
5.45% | 73.65% | 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.
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) |  |
36.00% | 134.40% | Invest Capital at risk |
| BT Group Plc (BT-A) |  |
35.88% | 62.29% | Invest Capital at risk |
| Vodafone Group PLC (VOD) |  |
5.98% | -40.59% | Invest Capital at risk |
| Ford Motor Company (F) |  |
-11.91% | 67.42% | Invest Capital at risk |
| INVESCO (3IW) |  |
-8.16% | 29.12% | Invest Capital at risk |
Stocks with smaller share prices can offer a range of benefits for investors on a budget with little amounts of money to spend:
Why smaller share price stocks are good for beginners with limited money to invest
They make it easier to get fully invested without needing fractional share access, offering a practical way to diversify and participate in the market with smaller sums.
Fractional shares make it easier for everyone to invest in the stock market, regardless of how much money you 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. You can even earn partial dividends, depending on the size of your fractional share.
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:
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, index funds, and solid companies with small share prices are top choices for beginner investors with limited money to invest. Affordability, diversification, stability and growth potential make these options ideal for building a strong investment portfolio, setting the stage for long-term financial success.
Whichever option you choose, make sure you’re using the best trading platform or app available, ideally one with low fees and access to a stocks and shares ISA account (so you don’t pay any UK tax on your profits).
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.
Use our Stocks and Shares ISA calculator to estimate the return on your ISA investments and see how your money could grow over time.
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