10 ways to invest 10000 Euro

10 ways to invest 10000 euros – under this or comparable headings you will find advisors or tips again and again.

These are usually a mix of traditional and somewhat more contemporary forms of investment, and there are also considerable differences in terms of risks and expected returns.

Who would like to know 10 ways, 10000 euro, should always assume that there is not the one king way, but the sum which can be invested should be distributed as cleverly as possible. The moreover one before each investment of funds a set of questions places itself.

10 ways to create 10000 Euro - preliminary considerations

Before it comes to finding out 10 ways, 10000 euros must be clarified whether there are other financial resources available or not.

Furthermore, the question arises whether the money should be available at a certain time or whether a long-term investment is also possible. These questions are important because some investments take several years to make a profit, while others offer short-term opportunities.

Furthermore, there is the question of the willingness to take risks: if the 10000 Euro is the entire fortune or a large part of it, then something should be done more cautiously than with so-called “play money” whose loss can be better absorbed. The age of the person making the investment also plays a role, i.e. those who are still young can plan more for the long term and offset losses through income than those who have already reached retirement age.

Please note: these are tendencies and not one-to-one write-ups.

A lot of security = low yield

The formula for investing money is basically quite simple: the greater the risk, the greater the potential profit. Conversely, maximum security is bought with a loss of return.

A prime example of this is time deposits, overnight money or even the savings book. As a rule, interest rates of less than one percent are paid for this, which does not even make it possible to balance the annual inflation rate. To put it another way, one certainly makes a loss but only to a small extent. Investment funds are also regarded as comparatively safe investments – especially when investments are made in standard stocks. Looking back, it is clear that the stock market only knew one direction – upwards.

However, it is not necessarily possible to derive forecasts for the future from this, so that the (theoretical) risk of a total loss always applies to real assets such as equities and even equity funds. Gold and real estate are also considered safe. The former has always been a means of payment and has never lost substantial value in human history.

However, gold offers no dividend and is exposed to enormous price fluctuations in the short and medium term. With real estate, the question arises as to whether the current upswing, including price increases, will continue or whether the proverbial “end of the line” has gradually been reached. Also, real estate cannot be converted into cash so quickly and is therefore only suitable in the long term.

More exciting forms of investment with yield orientation

If you name 10 ways to invest 10000 Euro, you should not miss crowdfunding and crowdinvesting.

Crowd investing in particular has gained in importance in recent years and represents a balanced and very attractive mix of opportunities and risks.

Investments are made in an existing company or a specific project, whereby fixed interest rates are applied. In almost all cases, the interest rate targets are achieved without any problems, whereby a distinction must be made between investment forms with or without regular dividends. The terms of crowd investing are between two and 15 years, the ancillary costs are low to non-existent.

The direct investment in shares (without risk diversification by a fund) or the trade with bonds and notes is also oriented towards the return. The same applies even more so to certificates that are considered particularly speculative in the list of 10 ways to invest 10000 euros.

However, this is – to use financial jargon – an unsecured bearer bond with the risk of total loss.