Smart ways to invest 100 Euros per month and make your money grow
Wondering where to invest 100 euros per month? Discover the best investment options and strategies that can help you reach your financial goals and make your money work for you. Find smart and easy ways to invest 100 Euros per month and start building your wealth today.
Investing can be a great way to grow your wealth and achieve your financial goals, but it can also be overwhelming, especially if you're a casual non-professional investor. With so many options available, it can be challenging to decide where to invest your money. In this article, we'll explore some of the best investment options for casual investors who want to invest 100 euros per month, including stocks, bonds, mutual funds, ETFs, crowdfuding platforms, p2p platforms, and real estate investment platforms.
But, before we get started, it's important to note that investing always carries risk, and past performance is not necessarily indicative of future results. Additionally, everyone's financial situation is unique, and it's always a good idea to consult with a professional financial advisor before making any investment decisions.
Option 1: stocks
Stocks are one of the most popular investment options, and for a good reason. When you invest in stocks, you're essentially buying a small ownership stake in a company. If the company does well, its stock price will increase, and you'll make a profit. Historically, stocks have been one of the best-performing asset classes, with average annual returns of around 10%.
For casual investors, investing in individual stocks can be risky, especially if you don't have the time or expertise to research and analyze companies. Instead, consider investing in a diversified portfolio of stocks through a mutual fund or an exchange-traded fund (ETF). Mutual funds are professionally managed portfolios of stocks, while ETFs are similar to mutual funds but trade like stocks.
That being said, investing in individual stocks can be a good choice for investors who are willing to put in the time and effort to research and analyze individual companies. Howether, it's important to keep in mind that investing in individual stocks carries higher risk, and it's important to have a diversified portfolio to help mitigate that risk.
Option 2: mutual funds
Another option for investing 100 euros per month is to put your money into mutual funds. Mutual funds are managed investment portfolios that pool money from a large number of investors to purchase a diverse mix of stocks, bonds, or other securities. Mutual funds are a popular investment option because they allow individual investors to gain exposure to a diversified portfolio of securities with relatively low investment amounts.
When it comes to mutual funds, there are a few different types to consider. Equity funds invest in stocks, while bond funds invest in fixed income securities. There are also balanced funds that invest in both stocks and bonds. Some mutual funds are actively managed, meaning a professional fund manager makes decisions about which securities to buy and sell, while others are passively managed, meaning they track a specific market index.
Mutual funds can be a good choice for investors who are looking for diversification and professional management of their investments. However, mutual funds do charge fees, including management fees and operating expenses. These fees can eat into your returns, so it's important to consider these operational expenses when looking for the right mutual fund.
Option 3: exchange-traded funds (ETFs)
Another investment option to consider is exchange-traded funds (ETFs). Exchange-traded funds (ETFs) ETFs are similar to mutual funds, but they trade like stocks. Basically, ETFs are professionally managed portfolios of stocks, bonds, or other assets that are traded on stock exchanges, making them easy to buy and sell. In that way ETFs can provide diversification and easy access to a wide range of assets.
ETFs are often less expensive than mutual funds, and they can be a good option for investors who are looking for low-cost, diversified exposure to the stock market. Like mutual funds, there are a variety of different types of ETFs available, including those that invest in stocks, bonds, and other securities. For casual investors, ETFs can be a great investment option because they offer diversification, professional management, and low fees.
One thing to keep in mind with ETFs is that because they trade on an exchange, there are brokerage fees associated with buying and selling ETFs. Additionally, some ETFs may have lower trading volumes, which can make them less liquid and potentially more volatile.
Option 4: P2P platforms
P2P platforms are a relatively new investment option that have gained popularity in recent years. P2P platforms connect borrowers directly with investors, cutting out traditional financial institutions. The process involves investors lending money to borrowers, who then repay the loan with interest. This model provides an alternative to traditional banking and can offer higher returns for investors.
One of the main benefits of P2P investing is that it allows investors to diversify their portfolios. Instead of investing all their money in one company or asset, investors can spread their money across multiple loans. P2P platforms also allow investors to choose the level of risk they are comfortable with, by selecting loans based on their risk profiles.
However, P2P investing is not without risks. The main risk is default, where the borrower is unable to repay the loan. This can result in loss of capital for the investor. P2P platforms usually have a system in place to reduce the risk of default, such as credit checks and collateral requirements. However, it is important for investors to understand the risks involved and to choose loans carefully.
There are many P2P platforms available, each with its own features and benefits. Some of the most popular P2P platforms include Mintos, Viainvest, Bondora, Twino, etc. For example, Mintos is a global P2P platform that offers loans from various countries and sectors. Bondora is a European platform that offers personal loans and small business loans. Twino is another European platform that offers consumer loans.
Option 5: real estate investment platforms
Real estate investment platforms provide investors with the opportunity to invest in real estate without the need for large sums of capital or extensive knowledge of the property market. These platforms allow investors to invest in property through crowdfunding, where multiple investors pool their money together to invest in a property. Real estate platforms offer a wide range of investment options, including rental properties, commercial properties, and property development projects. The returns on investment can come from rental income, capital appreciation, or a combination of both.
One of the main benefits of investing in real estate through crowdfunding is the ability to diversify your portfolio. By investing in multiple properties, investors can spread their risk and potentially earn higher returns. Real estate investment platforms also provide investors with access to properties that they may not have been able to invest in otherwise.
However, like any investment, real estate crowdfunding carries risks. One of the main risks is the potential for the property market to decline, resulting in lower returns or even loss of capital. It is important for investors to carefully consider the risks involved and to choose properties carefully.
Some of the most popular real estate investment platforms include Reinvest24, Estateguru, Razers and Brickowner. Reinvest24 is a real estate crowdfunding platform based in Estonia that focuses on rental properties. Estateguru is a real estate investment platform that provides investors with opportunities to invest in real estate crowdfunding projects in several European countries, including Estonia, Latvia, Lithuania, Finland, and Spain. Razers is a France-based crowdfunding real estate platform that specializes in residential and commercial property investments. Brickowner is a UK-based crowdfunding real estate platform that specializes in providing investors with opportunities to invest in residential property development projects.
Final thoughts on where to invest 100 euro
In conclusion, there are a multitude of options available to invest your 100 euros per month. The key is to identify your investment goals, risk tolerance and the investment horizon. A diversified portfolio is always recommended to minimize risk and maximize returns.
For example, stocks and ETFs offer excellent returns but come with higher risks. Investing in index funds can be a safer and profitable option in the long run. Real estate investing platforms can be a good option for those looking for stable and good passive income investments. P2P lending platforms offer good returns but require a higher risk appetite.
Also, before making any investment decisions don’t forget to do your own research and consult with a professional financial advisor. Remember, investing is a journey and not a destination. It requires patience, discipline and a long-term perspective. So, start small, stay consistent, and watch your investments grow over time.