There is a common misconception that you need a large sum of capital to begin investing.

That may have been true a decade ago.

But with the advent of new technologies such as fractional share trading, robo-investments and bite-sized investment products, that myth has been well and truly busted.

Thanks to these innovations, you can start investing your spare change into high-quality investment funds or blue-chip companies such as Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT).

However, owning individual stocks will require you to spend time researching and keeping up to date with the developments surrounding the company.

Spending time researching stocks might not be suitable for everyone.

For such individuals, investing in exchange traded funds (ETFs) opens up a viable option for them to achieve diversification and peace of mind in their investment portfolio.

ETFs in a nutshell

ETFs are basically a collection of investments that can range from stocks and bonds to indexes and other securities.