Getting started in the share market might feel intimidating, especially if you're new to investing or think you need a lot of money to begin.
The good news? It's not as hard as you think and you don't need heaps of money to start your journey.
With just $1,000, you can start building a portfolio of ASX shares and begin your journey toward long-term wealth creation.
Here's how to get started with ASX shares — step by step.
Set a clear goal
Before diving in, ask yourself: Why are you investing?
Are you building for retirement? Saving for a home? Trying to grow your money over 10+ years? Your goal will shape how you invest and what you invest in.
For most beginners with a long time horizon, the goal is simple: grow your money steadily.
Choose the right platform
To buy ASX shares, you'll need a brokerage account. These days, there are plenty of low-cost platforms that allow you to start with small amounts and charge $0–$10 per trade.
If you are investing small amounts, the lower the brokerage fees, the better.
Decide between ASX shares or ETFs
With $1,000, diversification matters — and that's where exchange-traded funds (ETF) shine. They let you own a slice of dozens or even thousands of shares with just one trade.
Three beginner-friendly options include the following:
Vanguard Australian Shares Index ETF (ASX: VAS)
This fund gives you exposure to the top 300 ASX shares, including banks, miners, and retailers.
BetaShares Nasdaq 100 ETF (ASX: NDQ)
This ASX ETF offers you easy access to US tech giants like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA).
Vanguard MSCI Index International Shares ETF (ASX: VGS)
This is a globally diversified fund that holds over 1,500 top shares from the US, Europe, Japan, and more.
You could also invest in high-quality and fairly valued individual ASX shares, such as Coles Group Ltd (ASX: COL), CSL Ltd (ASX: CSL) or Xero Ltd (ASX: XRO). But just keep in mind that $1,000 may only buy one or two stocks, which increases risk if one underperforms.
Reinvest and build
Once you've started, the next step is to stay consistent. Whether it's $100 or $500 a month, regular investing builds wealth over time. You can also reinvest dividends to maximise compounding returns.
And it sure could be worth it.
The share market has traditionally provided investors with an average total return of 10% per annum. There's no guarantee that this will be the same in the future, but it is fair return to target.
If you were to start with a $1,000 investment and then invested $500 monthly into ASX shares or ETFs, your portfolio would grow to be worth over $100,000 in 10 years if you achieved a 10% per annum return.
Though, it is worth remembering that the share market rarely moves in a straight line. There could be years where the market goes lower or trades flat, and then other years where the market rises 20% or more.
The key is to be patient, continue investing through cycles, and allow compounding to work its magic.
Foolish takeaway
You don't need to be wealthy or a market expert to invest on the ASX. With $1,000, a clear plan, and the right mindset, you can get started today.
Keep it simple. Stay the course. Let time and smart investing do the heavy lifting.
