How to invest 10,000? Use current crisis?
For many investors, 10,000 euros represents the basic amount at which it is worthwhile to start looking intensively at investment opportunities. This is because, in contrast to smaller amounts, 10,000 euros can be used to diversify more broadly than smaller investment sums.
The keyword costs plays a very important role here: Since online brokers often charge fixed prices in terms of transaction and order fees, the investment of smaller amounts can often be really expensive.
Investing 10,000 euros seems to be just the right amount to make your first investments in the stock market and the like. But where to put the hard-saved money so that it yields the highest possible return, but at the same time the money is invested safely and with low risk?
Therefore, below are a few helpful tips and tricks on how private investors should strike, especially because of the current Corona crisis.
This post was published on March 27, 2020.
- Now is shopping time for various asset classes
- Conclusion: When it comes to investing 10,000 euros, always check your own requirements.
Now is Shopping time for different asset classes
The crash is here and prices for various assets are in the basement.
Some DAX stocks have in calendar week 10 & 11 in places over 30 percent lost in value.
Inasmuch as the individual Risk buffer in the form of a smaller Overnight deposit is set aside, it is best to start investing 10,000 euros immediately, as the opportunity is currently better than it has been for a long time.
The following section therefore highlights a few promising asset classes in which investments can currently be made. Investment worthwhile.
1. ETFs (distributing or accumulating ETFs)
A large portion in terms of investing 10,000 euros should be invested in broadly diversified ETFs (exchange-traded funds).
These are passively managed funds that include a variety of different asset classes such as. Shares, Bonds as well as Raw materials and more Assets can contain and a Index to the corresponding underlyings ? the latter can either exist physically or be mapped by the ETF.
Due to the current Corona crisis prices for ETF funds are currently in the basement. Distribution rates of 2.00 to 8.00 percent per year are not uncommon for distributing ETFs ? with comparatively low risk at the same time.
2. In Bonds invest
Already Benjamin Graham revealed in his masterpiece The Intelligent Investor that wisdom that an admixture of Bonds (Corporate and Government bonds) in the portfolio significantly reduces its riskiness and ensures safe, solid returns.
Currently available for Bonds between 1.00 and 2.50 percent interest per year ? around 25 percent of one's portfolio should, in the best case, consist of Bonds exist.
3. Also Individual shares hold
The proportion of individual shares in an individual portfolio should be significantly smaller.
Here, increased attention should be paid to Growth stocks such as Tesla, Google or Apple as they show a promising upside potential and can therefore be considered as a Portfolio Booster can serve.
Solid earnings are ensured in the Invest 10.000 Euro-portfolio sometimes already the ETF-, respectively Bonds-Here, on the other hand, it's all about price gains!
4. REITs for investments in the real estate sector
The 10,000-euro portfolio should also include real estate as an asset class.
In order to invest here with as little risk as possible and to avoid a potential Cluster risk To avoid the risk of a loss, it is advisable for the retail investor to invest in so-called REITs (Real Estate Investment Trusts).
These are companies that are classified as Capital Collection Point serve for real estate purchases. Your Rental income The REITs distribute dividends in the form of regular Dividend payments to their shareholders ? so: add it to the portfolio!
5. Also P2P- and P2B-Use credits for 10,000
A smaller proportion of the investment capital can also be invested in P2P or P2B loans. These are peer-to-peer loans or peer-to-business loans - in effect, loans from private to private or from private to business.
There are currently a large number of Platforms on the net, which specialize in the offer of personal loans ? for example. Mintos, Bondora or Auxmoneyto name just a few providers.
The returns for this asset class are low, with an average of 8.00 to 13.00 percent quite high, but this variant is just as risky. It is therefore advisable to invest only a small percentage of one's portfolio (between 5 and 10 percent) to invest in this asset class.
6. Precious metals such as Gold buy
An additional admixture of gold should not be missing in any portfolio.
For precious metals have always served as a Crisis protection before economic crises, crashes or other events. Physical gold investments are therefore an ideal complement and offer the investor through Tangible assets an optimal hedge and can be liquidated again relatively uncomplicatedly in times of crisis.
7. Excess liquidity simply invested in short- to medium-term Time Deposits parking
Despite the currently very low interest rates for savings investments, fixed-term deposit accounts are still a safe and popular investment option.
Excess capital generated within the scope of Invest 10.000 Euro not yet invested in the aforementioned asset classes, can be invested in this way. Time Deposits invested with short to medium-term maturities ? i.e.: maturities between 12 and 36 months.
The advantage of this variant is that the invested capital is released again relatively quickly and can be reinvested ? in the event of a Change in interest rate level investors can thus react more flexibly. Depending on the credit institution Time Deposits with 12- to 36-month terms currently between 0.50 and 1.50 percent Savings interest offered.
Conclusion: In terms of Invest 10.000 Euro also always check your own requirements
Investors should always consider their own investment requirements and should design their portfolio accordingly.
Investors with an affinity for risk can increase the share of riskier asset classes such as Shares comparatively high, which is to the benefit of the maximum achievable return.
Who rather lower risk likes, who drives with a higher proportion of Bonds or Time Deposits certainly better. Also, it should always be considered according to which strategy the portfolio should be aligned ? whether according to Growth or rather after Yield (respectively Cash flow).
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