Buying stocks in really small quantities – Does it really matter ?

POSTED BY Bhavesh Furia ON March 5, 2014 3:20 pm COMMENTS (5)

I have a friend who has recently started investing in shares directly.

He sets aside 12-15K each month for shares and buys only at declines. He buys stocks in quantities ranging from 5 – 15 at a time, no bulk buying like 100, 1000 shares. He is into accumulation phase and has a long term view. His broker charges him fix rate irrespective of the quantity bought.

He asked me, whether it is OK to buy shares in such small quantities or buying in bulk is preferable ? I could not find proper answer for it πŸ™ .Β Any idea about how many % of stock investors in India buy in such a small quantity ?

5 replies on this article “Buying stocks in really small quantities – Does it really matter ?”

  1. Bhavesh Furia says:

    Thanks everyone (on behalf of my friend πŸ˜‰ ) for the answers.

  2. ashalanshu says:

    Dear Bhavesh, quantity wise it’s OK to purchase as per one’s own cashflow but the most important thing is the selection of stocks to purchase.

    Thanks

    Ashal

  3. Sumit says:

    Ya, its a good idea to buy stocks regularly in dips, that will spread out the risk and average the buying price. It will lead to good return in longer run.
    BTW what are the stocks in his portfolio?

    Thanks
    Sumit

    1. Bhavesh Furia says:

      According to what he keeps me telling, majority of his stocks are blue-chips and some mid-cap stocks.

  4. Hemanth Chandra says:

    There isn’t any problem in buying shares in small quantities. This is actually a good idea to set aside some money every month and invest in stocks at low price.

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