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20 Retail Business Ideas with Low Investment

Shitanshu Kapadia
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20 Retail Business Ideas with Low Investment

A retail business means selling product or services to the customer directly for earning a profit. A person running a retail business is called as a retailer. In India retail business is considered as one of the most profitable and lucrative business options. A few years back retail was considered as an unorganized sector, but due to the entry of big players and the start of shopping malls we have seen a lot of change in the retail industry.

The retail sector has evolved rapidly over the past few years. With the rise of e-commerce, niche shopping trends, and flexible consumer behavior, opportunities are everywhere. From your neighborhood to the online marketplace, low-investment retail businesses are not just possible—they’re booming!

In a retail business, you can start with a small shop and expand your business to setup retail chains. The key to success in retail business is quality of product, price, place and customer support. You can start a retail business even from home.

There are multiple types of retail businesses or retail stores. These businesses are classified based on size. The retail store types include –

  • Small Retail Store
  • Departmental Store
  • Super Market
  • Online Store
  • Franchise Store

Based on your interest and availability of capital, you can select a type of retail business.

Retail Business ideas

So, if you are young and dynamic individual and looking for profitable retail business ideas, here are 20 Retail Business Ideas and opportunities with low investment.

Also Read – 40 SMALL BUSINESS IDEAS WITH LOW INVESTMENT

20 Retail Business Ideas with Low Investment

Food-Related Retail Business Ideas

  1. Grocery Store

A Small Grocery Store is a profitable retail business option. The investment requirement for this business is moderate. You can start this store in any residential area. Grocery is an evergreen business option. You even don’t need any special skill for starting this business.

  1. Namkeen & Sweet Store

Another evergreen retail business idea is Namkeen Store. Namkeen & Sweets are an integral part of every celebration, be it a marriage, a New Year celebration, or any other festival. If you are good at making namkee,n you can start your own Namkeen Store.

  1. Ice Cream Store

Ice Cream store business, along with associated products, is a profitable business option in India. You need to select the right location and the right product. You can even take the franchise of famous ice cream manufacturers. It is a moderate investment business.

  1. Organic Food Store

The demand of organic food is growing all over. People are becoming health conscious, and they are ready to spend money on organic foods. You can start your own organic food store where you can keep organic foods and other food items.

  1. Tea Store

Opening a Tea store is low-investment, low-profit retail business idea. Location and format of the business play an important role in the success of this business. You can start this business on your own, or you can even think of taking franchises of popular brands that are already in this business.

Recommended Post – 15 Best Distribution Business Ideas

Household and Other Products Retail Business

  1. Hardware Store

A small hardware store near a residential or office area is another profitable retail business option. In a hardware store, you can keep a wide range of hardware and furniture-related items. The investment requirement in this business is moderate.

  1. Auto Spare Part Store

Auto Spare Part Store is the most profitable retail business idea. In an auto spare part store, you need to sell auto spare parts in the retail store. Make sure to open an auto spare part store in the middle of city or near garage. It is a moderate investment business.

  1. IT Hardware Store

IT Hardware Store is the next retail business idea. In this business, you need to sell IT Hardware items such as laptops, desktops, hard disks, mouse, speakers, etc. The success of this business depends on demographics and demand.

  1. Customized Gift Shop

Customized Gift Shop is one of the highly successful business options in the city. Gifts are purchased on almost every occasions like birthdays, marriages, anniversaries, etc. Nowadays, people prefer personalized gift and experiential gifts. If you can offer this type of gift with a satisfactory buying experience, you can become successful in this business very easily. Furthermore, to support such a setup, practical fixtures like gridwall panels can help organize and display a wide variety of merchandise efficiently, improving product visibility and making browsing easier for customers.

  1. Stationery & Book Shop

Stationery & Book Shop is education education-related business idea. In this business, you need to start a retail shop of stationery items and books near school or colleges. You can club Xerox along with sa tationery store. You will need manpower to run this business. A profit margin in the stationery business is low.

  1. Cosmetic Store

A cosmetic store is a place where cosmetic items and beauty products are sold. The demand of cosmetic items remains very high in the ladies. In your cosmetic store, you can keep branded as well as non-branded products.

  1. Perfume Store

A perfume store is next in the list of retail businesses. In a perfume store, you need to keep various perfumes imported and local. You should open this store in the center of the city or in the shopping mall.

  1. Mobile Store

Mobile store is next lucrative retail business option. It is a moderate investment business. The success of this business depends upon demographics and type of mobile sold by you. As it is a dynamic industry, it is advisable to avoid big investment at starting stage in this business.

Must Read – 90 Business Ideas with Low Investment

Service Related Retail Business Ideas

  1. Xerox Shop

Xerox Shop is small investment business option. You should open xerox shop nearby school, colleges or office area. Volume should be very high in order to earn high profit.

  1. Yoga or Fitness Studio

Health and wellness industry is growing at faster pace. People are becoming more health conscious. Thus starting a Yoga or Fitness Studio could be a profitable affair. A yoga studio can be started without any investment however fitness studio demand heavy investment.

  1. Beauty Parlor  

Beauty Parlor is business option for ladies. Ladies are fond of beauty services. They spend lot of money on beauty treatment. If you have done beauty course you can plan to open beauty parlor.

  1. Courier Services

Indian parcel and courier industry is growing at the rate of 25%. If you want to take advantage of this emerging business you can start your own courier store. You have to be very good in providing customer service. If required you can take franchise of famous courier companies.

  1. Medical Diagnostic Store

Medical Diagnostic Store is lucrative business idea. In almost every medical problem doctor demands diagnostic report. If you are qualified professional you can start medical diagnostic store.

  1. Tour Travel Organizer

Tour Travel Organizer is one of the most profitable business options. In this business, you need to help the customer in organizing tours. In order to run this business, you have to be very good at knowing demographic and developing contacts.

Also Read – 170 Small Business Ideas with low investment

  1. Photo Studio

Photography is an art in itself. If you have high quality camera and skill for clicking various photos you can open your own photo studio. You can also accept contract for marriage and event photography.

FAQs

Q1: Which is the most profitable retail business idea with low investment?
A: It depends on your interest and location, but online boutiques, mobile accessories, and pet supplies generally see quick returns.

Q2: Can I start a retail business from home?
A: Absolutely! Many of the above ideas, like baking, t-shirt printing, or boutique selling, can begin right from your living room.

Q3: Do I need a license for a small retail business in India?
A: Yes, you may need a Shop Act license, GST registration (if turnover exceeds limits), and FSSAI for food businesses.

Q4: How can I market my retail business with a small budget?
A: Social media marketing, word-of-mouth, and listing on local directories can give you great visibility without spending a fortune.

Q5: What if I don’t have storage space for inventory?
A: Consider dropshipping or selling digital products, or partner with wholesalers who offer storage options.

Conclusion

There you have it—20 retail business ideas with low investment that could be your stepping stone to financial freedom. No big loans. No massive risk. Just smart planning, consistent effort, and a dash of entrepreneurial spirit.

The retail business world is vast and welcoming. You don’t need a swanky office or a million bucks to get started. What you do need is passion, resilience, and a keen sense of what your customers want.

So, pick an idea that clicks with you, create a solid plan, and just begin. It’s okay to start small—some of the biggest empires started in a garage or a spare bedroom. Your journey to retail success could begin today!

Remember: Start smart, stay consistent, and never stop learning. The world of retail business is waiting for you!

How to Switch from Regular Mutual Fund to Direct Mutual Fund?

Shitanshu Kapadia
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How to Switch from Regular Mutual Fund to Direct Mutual Fund?

Direct Mutual Funds, as the name suggests, are for direct investor where no intermediary or distributor is involved in making an investment. It makes sense to Direct mutual fund as it provides multiple benefits like low expense ratio, better returns over long-term and elimination of commission.

The elimination of commission and lower expense ratio seems to be minimum at first instance, but over the long run, it will make a lot of difference in returns generated by the mutual fund.

To know more about a difference in return between a regular mutual fund and direct mutual fund, do read – Why Direct Plans are cheaper?

Investors who have realized the potential of a direct plan may have already shifted to them. The Investors who are unaware of benefits of the direct mutual fund might not have moved to direct plan. Even exit load and lock-in period might be a concern to many investors.

If you are convinced that direct mutual fund is a better choice compared to regular mutual fund and planning to switch to direct mutual funds this post is for you. In this post, I will share information about switching from Regular Mutual Fund to Direct Mutual Fund – Online and Offline method.

However, before making a switch from the regular fund to direct fund you need to consider various important factors affecting this switch.

Why Switch to a Direct Mutual Fund?

Before we jump into the how-to, let’s talk about the why. Regular mutual funds are managed by intermediaries or distributors who charge a commission for their services. While this might seem like a small cost, over time, these charges can eat into your returns. Enter direct mutual funds. They cut out the middleman, which means lower expense ratios and better returns for you. Plus, you’re in the driver’s seat, calling the shots and keeping more of your hard-earned money.

The Basics: Regular vs. Direct Mutual Funds

Regular Mutual Funds

These come with a distributor’s commission embedded in the expense ratio. You’re essentially paying for advice, convenience, and the services of a middleman.

Direct Mutual Funds

These skip the commission, offering a lower expense ratio and potentially higher returns. They’re ideal for seasoned investors or anyone willing to learn the ropes.

Important factors to consider before switching from Regular Mutual Fund to Direct Mutual Fund –

Elimination of Distributor Services

The step of switching from the regular fund to direct fund means an indirect elimination of distributor services. The distributors provide you a consolidated direct platform for an online transaction where you can buy and sell mutual funds. They also remove the need for paperwork. They charge fees for this. If you are moving to direct plan means you will not use services of distributor anymore. So, you have to be ready for handling more paperwork and working with multiple platforms.

Exit Load

Second important factor for consideration while switching from regular plan to direct plan is exit loan. Exit load is applicable on redemption of the units which are held less than one year. So, you have to bear applicable exit load on a mutual fund. If you have invested via SIP route, the exit load is calculated from the date of each installment.

Once you switch to direct plan new tenure will begin so exit load period will be calculated from the date of switching. If your financial goals are due to mature in short term you should avoid this switch.

Recommended – 3 Ways to Invest in Direct Mutual Funds Plans

Lock-in period

If you have invested in ELSS, it comes with lock-in period means you cannot switch from these type of fund till lock-in period is over. The lock-in period in ELSS case is 3 years.

LTCG

You also need to consider LTCG (Long-term capital gain) tax applicable on the mutual fund. You must be aware that as per new rule LTCG @10% is applicable to capital gain above 1 Lakh. This rule is applicable from FY 2018-19 onwards.

This means if your capital gain is exceeding 1 lakh, you need to start withdrawal in a manner that you will not lose money. Remember for switching also LTCG is applicable.

Stock Broker

If you have invested via a stockbroker, your stock broker should support direct plans. Please note that switching of a fund from a regular fund to direct plan will not be possible if your stockbroker is not supporting direct plan option. In that case, the only option left with you is redeeming mutual fund and investing it again in direct plans.

I hope you are clear about switching of funds. If you need any help you can consult fee-only financial planners. Now, let’s take a look at How to switch from Regular Mutual Fund to Direct Mutual Fund?

 How to switch from Regular Mutual Fund to Direct Mutual Fund?

Offline Method

The offline method of switching fund is given below. This method is applicable for all funds.

  • Visit the office of fund house or respective Mutual Fund distributor. You can get information about registered mutual fund distributor from AMFI website.
  • Ask for the Common Transaction Form for Switching Mutual Fund. If you have CAN at MFU you can also use the form available at MFU website. Fill up the form with required details along with source scheme and target scheme details. A sample form screenshot is given below. You can also use fillable form.

Common Transaction Form

  • Make sure all details are correct, especially source scheme, target scheme, amount and number of units to be switched. After verification sign it on the form and submit it to respective center.
  • Collect the acknowledgment receipt as a proof of submission.
  • Once transaction takes place you will get email and SMS intimation on register email ID/Mobile number.

Also Read – How to invest in Direct Mutual Funds Plans?

Online Method

The second method of switching fund is an online method. This method varies from fund house to fund house. I have used online method of switching fund via myCAMS which is described below.

  • Visit myCAMS site and log in using your username and password.
  • From Top navigation, click on Transact icon.
  • You will be redirected to the page where it will show various options such as Invest more, Redemption, Switch, Systematic Investment Plan, Systematic Transfer Plan etc.
  • Click on Switch, you will be prompted to select AMC Name. Drop down menu only displays a list of AMC where you are holding mutual funds.
  • Select AMC and Folio Number. You will be asked to provide Source Scheme and Target Scheme. You have the option to switch entire balance or number of units.

direct mutual fund

  • Accept terms and condition and press on switch button to initiate switching. You can also schedule this transaction at later date.
  • On submission, you will get a confirmation page. The certain portals may ask transaction PIN or ask to re-enter your password for verification.
  • Once the process is completed you will receive intimation on your registered email id and mobile via SMS.

Step-by-Step Guide to Switching

Switching isn’t as complicated as it sounds. Here’s a step-by-step guide to help you transition smoothly –

1. Evaluate Your Current Investments

First things first: take stock of your current mutual fund portfolio. Look at your funds’ performance, expense ratios, and exit load. Why? Because some funds may charge an exit load (a small penalty) if you redeem units within a specific period. Also, selling your funds may trigger capital gains tax. Both factors can affect the overall profitability of your switch.

2. Understand the Tax Implications

Switching from a regular to a direct plan is treated as redemption and re-investment for tax purposes. This means:

  • Equity Funds: Gains are taxed at 15% (short-term) or 10% (long-term if gains exceed ₹1 lakh).
  • Debt Funds: Short-term gains are taxed as per your income slab, while long-term gains attract a 20% tax with indexation benefits.

Crunch the numbers before making a move. Sometimes, the tax burden can outweigh the benefits of switching.

3. Choose Your Platform

You can switch directly through the Asset Management Company (AMC) website, a robo-advisory platform, or even apps like Groww, Zerodha, or Paytm Money. Each platform has its pros and cons, so pick one that aligns with your comfort level and ease of use.

4. Initiate Redemption in Regular Plan

To switch, you’ll first need to redeem your units in the regular plan. This is straightforward:

  • Log in to your mutual fund platform or AMC website.
  • Select the regular mutual fund you wish to switch from.
  • Click “Redeem.”
  • Specify the number of units or amount you want to redeem.

5. Reinvest in the Direct Plan

Once your funds are redeemed (usually takes 1-3 business days), reinvest the amount in the direct plan of the same mutual fund. Here’s how:

  • Go to the AMC’s website or your chosen platform.
  • Search for the direct plan of your desired mutual fund.
  • Select “Invest” and input the redemption amount.
  • Complete the transaction.

6. Track and Review

Switching is just the beginning. Keep an eye on your investments’ performance, expense ratios, and overall portfolio health. Direct plans require a hands-on approach, so stay vigilant.

Pro Tips for a Hassle-Free Transition

  • Stagger Your Switch – Instead of switching all your funds at once, consider staggering the process over a few months to minimize tax impact.

  • Focus on Long-Term Benefits – Don’t get bogged down by short-term tax liabilities or exit loads. Think of the long-term cost savings.

  • DIY Research – Educate yourself about market trends, fund performance, and portfolio allocation to make informed decisions.

Common Mistakes to Avoid

  1. Ignoring Tax and Exit Loads: A hasty switch can lead to unnecessary costs. Always evaluate the financial implications.
  2. Overlooking Fund Performance: Don’t assume direct plans automatically outperform. Always review a fund’s historical performance.
  3. Not Staying Updated: Direct mutual funds require active management. Keep yourself updated with market changes and fund updates.

Switching from a regular mutual fund to a direct mutual fund can be a game-changer for your investment strategy. It’s all about cutting costs, maximizing returns, and taking control of your financial future. Sure, it’s a bit more work, but isn’t your hard-earned money worth it? Armed with the right knowledge and tools, you can make the transition seamless and rewarding.

How to change Mobile Number in EPF UAN Account?

Shitanshu Kapadia
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How to change Mobile Number in EPF UAN Account?

You can easily change or update Mobile Number and E-mail address in EPF UAN Account using Unified Portal. However, many people are not aware of this facility. Recently, one of blog reader asked a question in the comment section that “I forgot my password of UAN and I changed my mobile number also. How to Login to the Unified portal or How to update my mobile number? Well, it is easy to change mobile number on EPF UAN Portal. You just need your UAN number that’s it!

Before sharing an actual method of changing and updating mobile number, let us take a look at what are the benefits of registering mobile number with your EPF UAN Account.

  • To avail balance detail of EPF via SMS.
  • To complete online transfer claim request.
  • To apply for online EPF Withdrawal

In short, it is necessary to update your EPF UAN account with the latest mobile number used by you. If you are struggling to update your Mobile number or E-mail ID in EPF UAN account this post is for you. In this post, I will share two simple methods to change mobile number in EPF account using unified member portal.

Also Read – How to update change EPF Nomination online with UAN?

Change Mobile Number in EPF UAN Online without Password

If you have forgotten your UAN password and you want to change your mobile number follow the process given below.

  • Visit Unified Member Portal.
  • On the right-hand side, you will find login menu.
  • Click on Forgot Password link.

forgot password UAN EPF

  • You will be redirected to the page where you need to provide your UAN number along with Captcha. After inputting this detail click on Submit button.
  • The system will display current mobile number registered with UAN account. In case you want to change or update this mobile number click on “No” button given besides “Do you wish to send OTP on the above mobile number?” message.
  • The system will prompt you to input basic information such as your name, date of birth and gender.

forgot password change mobile

  • After providing information click on Verify Button. It will now check EPFO database about the correctness of the information provided by you. If the information is incorrect it will simply say that above information is not matching with the information available in the system. Kindly contact EPFO office.
  • If information matches with EPF database it will further ask you to validate against AADHAAR or PAN.

validate mobile epf uan

  • You need to select any one option and provide information as per selection. After providing correct information click on Verify button. If details are validated you will be asked to input your mobile number to get OTP. Enter the OTP to update your mobile number at EPF UAN.

Above process is very lengthy and tedious as multiple validation points are involved. You need to provide correct information at every stage. (As per EPFO database). Incorrect information at any point of time means difficulty in updating mobile number.

In addition to that above process will work only if KYC detail of the member is in place. The second method to change the mobile number at EPF portal is very easy. However, in second method you will need EPF UAN login ID and password.

Also Read – How to update KYC EPF UAN Online?

How to change or Update Mobile Number in EPF UAN Online?

If EPF UAN password is known to you follow the steps given below for updating mobile number and e-mail address.

  • Visit Unified member portal.
  • Login using UAN and Password to the unified portal.
  • Click on Manage >> Contact Details from the top navigation menu.
  • You will be diverted to the page where your registered mobile number and E-mail ID will be displayed.
  • In order to change mobile number click on “Change Mobile Number” and enter your New Mobile Number.
  • Click on “Get Authorization Pin”. OTP will be sent to your new mobile number. Enter OTP and your mobile number will changed.

change mobile number epf

  • In a similar way, you can also change your E-mail ID. You just need to enter your new e-mail address and click on “Get Authorization Pin”.OTP will be sent to your e-mail address. Once you input the OTP you will be able to change e-mail address.

Also Read – Online EPF withdrawal Claim Submission Process

You can also change the mobile number by going to View >> Profile from the top navigation menu.

In profile, you will be able to see member details. If mobile number mentioned in your profile detail is incorrect, click on “Change” link given in front of the mobile number.

Top up Loan Vs Personal Loan – What should you choose and Why?

Shitanshu Kapadia
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0
Top up Loan Vs Personal Loan – What should you choose and Why?

What is Top Up Loan? Why should you consider Top up Loan? Let’s take a look. People generally opt for a personal loan to fulfill their cash requirement in an emergency. It is quick and easy loan option nowadays. However, before taking any loan one must understand, which loan is best for them?

My friend had purchased a flat by taking a home loan before 3 years. He started paying EMI’s for the same. After 3 years he got an additional requirement of 3 Lakh for his daughter’s marriage. He could not manage cash and the only option left to him is taking another loan. He approached the bank from where he has taken a home loan. The bank manager gave him two options (1) Personal loan (2) Top up Loan. He is confused and looking for an answer which one he should take a personal loan or top up loan? If you are in a similar situation here is a quick guide explaining about Top up Loan and Personal Loan.

Also Read – 5 Best Banks for Personal Loan in India

What is Top up Loan?

Top-Up Loan as the name suggests it is a loan given on the Top of another loan – Home Loan. That’s why it is also known as a Top Up Home Loan. Top-Up Home loan is offered to existing home loan customers. Almost all banks including Non-Banking Finance companies (NFBCs) offers Top up Loan. Terms condition, interest rate and tenure of this loan differ from bank to bank. You need to have a very good credit history in order to take this loan. There is a common misconception that Top up Home loan is given only for house renovation or for additional construction. However, it is not true. Most of the bank offers Top up loans which can be used for any purpose including medical expense, marriage, business expense, child’s education etc.

Eligibility Conditions for Top up Loan

  • You should be an existing home loan customer of the bank or NFBC.
  • You should be holding very good repayment record for few years.
  • You should not have exhausted your home loan limit.
  • Your Credit score should be good.

If above conditions are satisfied banks generally sanction top-up home loan in maximum 2 days’ time.

Note – Eligibility conditions for this type of loan may vary from bank to bank. You should talk to your bank/NFBC to find out further details.

Key Features and Benefits of Top up Loan

No Additional Collateral 

Top Up Home loans does not require any type of additional collateral. You need not provide any documents/evidence of holding an additional asset for availing this loan. Your home loan agreement/paper will act as collateral.

Interest Rate

 The interest rates charged on Top-Up Home Loans are 1% – 3% higher than a home loan interest rate. This means you will get a top-up home loan at the interest rate of 11% -14%. At first glance, this cost seems to be high but if we compare it with a personal loan it is low.

Loan Amount 

 The loan amount in the case of a top-up home loan will be limited to your sanction home loan amount/outstanding balance. In some cases, a bank may give additional loan amount sanction, it all depends upon your credit history and property rates where you have purchased a property.  The approval amount will be higher if a top-up loan is applied after 3-4 years of availing home loan.

Loan Tenure

The tenure of top-up loans is 10 years or 15 years. It can go up to 20 years based on your existing home loan tenure.

Approval

It generally takes 2 days to get an approval of this loan. Banks usually check the repayment history and repayment capacity of the borrower before approving the loan.

Purpose

Some banks restrict top-up home loan for home extension only. However, most of the bank has removed this restriction. You can avail top-up home loan for any purpose like children education, medical emergency, home renovation, marriage, business expense etc.

Tax Benefit 

You can avail tax benefits provided you have used top-up loan amount for renovation, acquisition or construction of the existing home.

Also Read – 20 Types of Loans in India

Top-Up Loan Vs Personal Loan

After understanding the concept of Top Up Home loan. Let’s compare Top Up Loan and Personal Loans.

personal loan vs top up loan india

What should you choose?

I hope by now you must have got a fair understanding of top-up loans and personal loans. Top up Loan offers multiple advantages compared to personal loans. If you have an existing home loan with a lender and a choice is given to you between a personal loan and top up loan you must select top-up loan as it offers benefits like lower interest rate, higher tenure, lower EMI and minimum documentation.

If you don’t have a home loan you can think of taking a personal loan, gold loan or loan against a fixed deposit. Make sure to do proper research before taking any loan.

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