What is fractional investing?

Fractional investing allows individuals to buy a portion of a high-priced asset, such as a stock or mutual fund, rather than needing to purchase the full unit. For example, if one share of a company costs ₹10,000, an investor can buy just ₹1,000 worth of that share. This makes investing more accessible, especially for beginners or those with limited capital. It also enables better diversification, as people can invest in multiple companies with small amounts. Fractional investing is popular on platforms that support direct stock or ETF investments, and it's helping democratize access to wealth creation. In India, platforms like Groww, Zerodha, and others are starting to offer or explore fractional options, especially in U.S. stocks. It’s particularly attractive to Gen Z and millennials who want exposure to big brands without needing large capital.