How to invest €25,000 well in 2023?
Do you have capital that you want to grow? Unfortunately, saving does not bring enough, so the investment is for you! After two years having completely reshuffled the cards of all markets, most have nevertheless continued to evolve and growth has been relaunched. So how can you properly invest €25,000 in 2023 to ensure a favorable risk-return ratio? Here are our tips.
A few tips for investing your money
Various categories or sectors can satisfy your investment needs and desires. However, not everyone is an expert in finance, which hinders some people from getting started, who do not dare to go through the door of the bank adviser, or approach this subject whose vocabulary escapes them. This is why, when the capital is constituted by savings or by the sale of a property or an inheritance, in short whatever its origin, it is advisable to call on a wealth manager. The latter is the expert professional in supporting the organization and enhancement of your assets, whether it is to advise you on the best financial investments, as well as to guide your choices to capitalize on these investments.
He will be able to adapt the optimization of your assets according to your investor profile. There are four main ones, although these categories are only subjective and could be categorized differently.
- Cautious investors: Generally novices and inexperienced in finance, they will prefer reliable and secure investments, causing them to take almost no risk of loss of capital. This type of profile will often invest in SCPIs;
- Pragmatic investors: This type of investor will accept a share of risk provided that it is known, measured and controlled. They too are not finance professionals but will generally be disappointed profiles of savings accounts and other euro funds that no longer yield, and will thus seek to generate more returns with a very favorable return/risk ratio;
- Opportunistic investors: Much more comfortable with finance and constantly on the lookout for market developments, these are the ones who will be able to take advantage of major changes in society, whether social, societal, environmental or other, to seize opportunities. The risk to be taken is known to them, and it is in full awareness that they will generally place a large capital, on a promising poker hand;
- Avant-garde investors: These will invest their capital in the markets of technological and scientific advances, betting on progress. They will invest in the sectors of tomorrow: renewable energies, 6G, etc.
€25,000: How to invest it in promising sectors?
As you will have understood, “wanting to invest” and “investing well” are two different concepts that should be reconciled by studying at least market developments. The Internet provides access to affordable and understandable financial information. Here we offer you a summary of the most profitable investments in 2023.
Investing in precious metals at the center of technological innovation
The ambitions of tomorrow’s progress call on strategic metals, in particular Gallium used for 5G technology, photovoltaic panels or Cloud storage, or even Neodymium used in the design of batteries for electric vehicles, in wind power and in LED energy. There is also Lithium, Tellurium, Indium, etc. Investing in metals is an intelligent investment whose future is promised to a strong evolution. The rise in commodity prices is having a butterfly effect on many markets. In fact, some metals have increased by 200 to 300% in a few months (this is also a good time to resell gold jewelry that you no longer wear). These multi-decade technological perspectives combined with limited production capacities highlight their uniqueness. When demand exceeds supply, supply increases in value, which makes investors happy.
BIAU (Bien Investir Autre) life insurance is made up of investment funds in these innovative sectors such as space tourism, artificial intelligence, Big Data, etc.
Invest in a yield SCPI
An SCPI (Civil Real Estate Investment Company) is aptly named. Everything is said, the very purpose of its creation is to encourage investors to invest their money in a real estate complex. Buying and becoming a lessor induces a responsibility as the owner of the property, in particular the inventory of fixtures of entry and exit of the tenants, the maintenance of the accommodation and the renewal of the faulty equipment, the payment of a property tax, etc. . Conversely, the SCPI allows real estate investment without constraint. This investment does not offer full ownership, but only bare ownership, thus leaving the management company the usufruct of the building. The SCPI investor will end up owning a share of the real estate complex, up to his investment. Real estate is rather a safe bet, as the goods increase in value over the years. However, the capital is not guaranteed. Investing in housing that would see a station built nearby, or a new building directly opposite could devalue over time, which will induce a loss for the investor. The yield of an SCPI is estimated between 4 and 5% per year. It is probably the least risky investment today.
Real estate crowdfunding
It might look like investing in SCPI, but its concept is somewhat different. Indeed, crowdfunding consists of co-financing real estate development operations in France with other investors from €1,000. To acquire new land, for example, a real estate developer may need equity and thus issue a bond in which the co-financiers will be able to invest. The commitment is for a limited period, generally 12 to 24 months, with a return of around 7 to 10% per year. It is a simple and almost guaranteed way to ensure a correct return without big risk taken.
The Retirement Savings Plan (PER)
We grant you, it is not the most glamorous investment. And yet, it should not be overlooked. The ratio of working contributors to retirees remains low, due on the one hand to working people who contribute little and to a high unemployment rate, and on the other hand to the number of new retirees, plans for early retirement on the last decade, and an increase in life expectancy. 8% of retirees live below the poverty line, 38% benefit from the minimum pension, and a pension gap of 40% is observed between retired women and men. €1,400 for employees retired from the general scheme, €1,200 for non-employees affiliated to the social security of the self-employed; here is the panorama of the pension system today. So investing in a PER remains a very good way to ensure an additional pension. In addition, formerly PERP, the new PER “formula” is much more flexible and brings new advantages, in particular fiscal by allowing deductible payments of income taxes.
Invest in cryptocurrency
Investing in cryptocurrency is one of the riskiest investments in capital loss as this market is volatile. Doing so is not a mistake, quite the contrary, but on the other hand requires a perfect knowledge of the financial markets as it is difficult to understand for a novice. Do you know bitcoin (BTC)? It is the best known of the virtual currencies which dominates more than 50% of the entire market, making it a safe bet. However, according to finance experts, Cardano is probably the most promising cryptocurrency of 2023, showing a growth rate of up to 99%, followed by Terra whose project is to optimize decentralized finance.
stock market investment
The simplest and most effective way to do this, for a novice, is to buy ETFs (Exchange-Traded Funds, translated Funds listed on the stock exchange) which are in fact baskets of shares that follow a stock market index. They allow cost control and a diversified portfolio. You can also choose your shares and subscribe to units in collective investment schemes (OPC) or mutual funds (FCP)
This is a basket security, bringing together all the investments responding to changes in society, mentalities and consciences, consumption habits, etc. Real estate investors are turning their backs on the old, recognized thermal sieve, to invest in new housing that complies with the recently applied RT2020 standard. The sustainable investor places his money in organic agriculture and/or short circuits, in the clean automobile market called the “ecomobile” market, in renewable energies, and more broadly in innovation, in renewal, in the real , which is what we are looking for after a start to the decade marked by an unprecedented context that has brought back to the center values that may have been somewhat forgotten or flouted. SRI (Socially Responsible Investment), which aims to reconcile economic performance and social impact on the business environment, is one of the sustainable investments.