Where to invest your money in Europe - effective ways to get a return on your investment
Investing guide

Where to invest your money in Europe - effective ways to get a return on your investment

Looking for a place to invest your money in Europe and get a solid return? Protect your savings from inflation and find out where to invest your money safely and profitably.

Nowadays, when the interest paid on deposits in banks and credit unions is below the real inflation rate in the country, many people who want to preserve or even increase the value of the money they have saved are wondering where they can invest their money and put their savings to work efficiently. After all, the history of various countries has shown us time and again how quickly capital that is not properly employed can depreciate in value, and it is therefore worthwhile for every responsible person to take care of the safety of his or her money. So, in this article, we'll not only look at the most popular investment methods, but also advise you on the best places where to invest your money in Europe.

It should be noted that in today's markets, there are plenty of opportunities for profitable investment of existing funds. This is probably why experienced investors always try to invest their money in a wide variety of investment instruments. The most popular investment vehicles are shares, investment funds, real estate and loan investments. So, let's discuss what are the most profitable places to invest money in Europe.

Real estate - a stable and reliable investment

Real estate is one of the most popular ways of investing money worldwide. A big advantage of real estate is the stability of its value, so if you are looking for a safe place to invest your money, real estate would be one of the main choices. Investing in real estate can be done directly, by buying or developing a specific property and then selling or renting it out, or indirectly, by buying shares in real estate companies or by financing the development of projects through crowdfunding platforms.

It should be noted that direct investment in real estate has a major drawback, namely the high need for equity or debt capital. Small investors usually do not have sufficient funds to directly purchase or build the property themselves. In such cases, indirect investment in real estate is possible. For example, by financing projects under development on crowdfunding platforms. These platforms advertise real estate investment projects under development or planned for development and allow investors to lend money to developers. Typically, you can invest as little as €100 per project, so if you are looking for the best place to invest money in real estate, make sure you check out these investment platforms.

Investing in loans - lending money to businesses and people

Investing in loans has quickly gained popularity across Europe due to its simplicity and relatively solid investment returns. So if you are looking for a simple and profitable way to invest your savings, peer- to-peer lending platforms may be your best bet. Most importantly, you don't need to be a big investment expert to invest in loans. In this case, most of the analytical and loan evaluation work is done by the administration of the investment platform, which selects the most credible loans.

Lending money on peer-to-peer lending platforms is therefore a much simpler way of investing than, for example, investing in shares. The platforms are accessed by ordinary people or businesses, so you can invest in consumer loans or business loans. It is also important to note that you can usually invest as little as €10 or €20 per loan, so if you are looking for a place to invest your small savings, investing in loans can be a good option.

Company shares - if you want to invest in a business

If you don't know exactly where to invest, but want to put your money to work for you, then go for shares in companies. Company shares are equity securities that give the holder rights to a proportion of the company's assets and profits. There are two ways to earn money from your shares: through dividends or by trading them. How to start investing in shares? It's actually very simple - company shares are traded on a stock exchange, where you can buy shares listed on the stock exchange.

However, shares are a risky instrument, so you will need at least a minimum level of investment knowledge to invest in company shares and make a profit. The thing is, not only do share prices on the stock market fluctuate constantly and can fall, but sometimes companies go bankrupt. In such cases, you may lose all or part of the money you have invested, which is why we would only recommend investing in shares for experienced investors.

Investment funds - your money in the hands of professionals

If you are just starting to learn how to invest and don't feel like a big financial expert, you can buy units in a mutual fund and entrust your money to a professional. Mutual funds are one of the best choices for people who cannot spend a lot of time looking for where to invest in Europe. When you buy units in the fund of your choice, you are, so to speak, handing over your money to investment professionals who, for a small fee, manage and invest it.

There are many different types of investment funds on the market. Funds usually follow a well-defined investment strategy, so when you choose a particular investment fund, you will know exactly what asset classes the fund invests in. For example, you might choose a fund that invests only in emerging economies, commodities, real estate or only in the shares of companies in specific industry sectors.

Make sure you seek professional advice before investing

As you can see, investing in European markets can involve many different ways of "putting money to work" that are accessible to all people. However, it is up to you to decide where to invest your money. It should be remembered that any investment of money always carries a greater or lesser risk of losing some or all of the money invested. We therefore suggest that you choose only those instruments with which you have some familiarity. And if you are still unsure about your options, then be sure to seek advice from investment specialists or your bank advisor who will help you to draw up a clear and reliable investment plan.

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