Is it possible to grow your money with just USD 1000? Yes, money can grow as fast as you can invest. However, mere investment is not enough. Investment has to be accompanied by planning and a bit of research.

Since money does not come easily, it is necessary to make the money grow in the fastest and the best possible way. Read on to know how to grow money with just USD 1000.

Crowdfunding
Crowdfunding is a source of pooling money and getting more in return. In fact, more start-ups are looking at crowdfunding for funding their company. Investors look at crowdfunding as a passive way of making income. There is equity crowdfunding, wherein a company asks for funds from investors in return for equities in their company. There is real estate crowdfunding, where investors can pool their money with as low as USD 500, and invest in real estate properties in return for the dividend.

Real estate
Real estate seems to be a good earning source especially for retirees, who do not have much income at their disposal. Renting out a property or investing in real estate can help to grow your money quickly.

Equities
If you can understand the markets and their changing behavior pretty well, go for stock market trading. Choose a stock on their past performance history and invest in that stock. If you are not sure about investing in stock markets, do some research, and find out more about the company to get better knowledge.

Index funds
Given a choice between stock market and mutual funds, invest in index funds for better results. Index funds, managed by fund houses, are essentially a basket of stocks, which are designed for investors, who prefer certain sectors or industries. Index funds like Dow Jones or S&P 500 are a favorite with investors, for their solid returns and stable performances. The benefits of investing USD 1000 in an index fund is low investment fee, expert management of funds, and your chances of going wrong are less.

Peer-to-peer lending
P2P (Peer-to-peer) lending is an online portal wherein companies look in for investors to loan people, whose loans are not qualified or approved by banks due to low credit scores or other reasons. Before lending money, investors are given a full history of the borrower and the investor can decide whether he wants to invest or fund his money to the company. The interest rate depends on the nature of the loan. Riskier the loan, higher is the interest rate and returns.

Roth IRA
Perhaps the smartest and the safest investment you can do with USD 1000 is to invest in Roth IRA. Besides getting tax-free money in your retirement days, you also have a hold over your money. With Roth IRA, you are saving for your retirement days too.

A lot can be done with USD 1000 in your pocket. If you invest USD 1000 for a long term, it will surely fetch you good returns. Before you start looking for ways to invest, remember that all greater investors also started with little amount until they made fortunes.