Accumulating large capital in times of inflation generates a serious threat related to the loss of value of savings. An effective way to protect them is through well-thought-out investments. These should be preceded by a thorough analysis of the investment risk, which varies depending on the chosen instrument. In this guide, we will consider what to invest big money in. Always remember to do it wisely.
How to invest money?
The first step is to understand how to invest money. Currently, investors can choose from many interesting instruments that differ in investment risk and the level of minimum contribution. It is worth carefully analyzing the available options to make an informed decision. Standard types of investments include, m.in, shares, bonds, real estate, investment funds, works of art, precious metals or cars. Carefully selected bank deposits can also protect funds against high inflation and loss of value. Each of these opportunities comes with a specific investment risk that you need to understand and be aware of. We know from experience that it is worth investing in markets that you understand well and know the specifics of the mechanisms that take place on them. The better the preparation, the more conscious the decision and the more conscious the decision to invest savings in a given instrument. Of course, the larger the capital, the more opportunities open up for the investor.
What to invest large amounts in?
The main topic of this guide is to answer the question of what to invest large amounts of. If you currently have less capital, it is worth reading our guide, where we described what to invest small amounts in.
With investments at the level of PLN 500,000 and more, there are really a lot of attractive opportunities. Of course, for years, one of the safer options has been investing in real estate. These can be both apartments, land and commercial premises, although these have guaranteed the lowest rate of return in recent years. A big advantage of this type of investment is the fact that you do not have to be a real estate specialist. You can successfully rely on cooperation with a trusted expert. Investing savings in real estate allows you not only to secure funds, but also to ensure a stable passive income if the property is intended for rent. Currently, there is a trend in which an apartment or house is gaining in value year on year, and the rate of return is accelerated by monthly rental income. To increase the security of this type of investment, it is worth carefully familiarizing yourself with the different locations and, in cooperation with an expert, bet on a facility with great potential. This applies to both properties located in Poland and in popular foreign destinations. In recent years, more and more investors from Poland have decided to buy an apartment or house in Italy, Spain, France, Georgia or Cyprus.
What is worth investing a lot of money in if you are not interested in real estate? There are still several interesting variants to choose from. Another interesting choice is to invest in works of art. These have grown significantly in popularity as an investment asset in recent years. The works of valued artists are a long-term investment that does not lose its value, but can only gain. It is a proven choice for people who want to protect their funds and at the same time do not expect a quick and high return.
Another alternative is precious metals. They are also considered a stable investment, but you should not expect large returns. This is a good way to protect your funds against inflation and ensure a small hill. In our guides, we have already pointed out how to invest in gold and what investing in silver is all about. We encourage you to read these articles.
The development of technology makes startups and companies from the hi-tech and innovation sector very popular among investors. However, it is a high-risk investment, so it is worth considering it carefully. On the one hand, it gives a chance for a quick return and multiplication of capital, and on the other hand, there is always a risk of a business failure of a given company.
Where to invest $50k?
People with a capital of tens of thousands of zlotys have slightly fewer options, but these are still amounts that can be reasonably invested. Let’s think about what to invest 60 thousand zlotys in or what to invest 50 thousand zlotys in?
With this capital, works of art from respected Polish artists are still within the investor’s reach. Paintings by widely recognized artists can be bought in the range of tens of thousands of zlotys, but it is worth working with a trusted expert.
Actions remain an alternative to works of art. With this type of funds, you can take a risk and bet on penny shares, as well as buy shares of companies with an established position on the market, which seem to be a good security of capital. Entities operating in the logistics, RES, IT and pharmaceutical sectors are very popular. Throughout the process, use a reputable brokerage house, thanks to which you will minimize your investment risk. These, however, will always occur, because no investment gives a hundred percent guarantee of return. However, dividend investing has been very popular for years.
Smaller properties remain another choice, including, m.in, garages, parking spaces and small service facilities. Within the range of tens of thousands of zlotys, you can find real gems that will generate a stable passive income. Although it is an investment with an extended payback period, it is a proven way of investing financial surpluses with insufficient capital to buy an apartment.
With a capital of tens of thousands of zlotys, it is also interesting to invest in index funds and ETFs. The former are investment funds that are not listed on the stock exchange. Thanks to this, you can invest in them without cooperation with a brokerage house. Exchange Traded Funds (ETFs) are listed on the stock exchange and are a combination of an open-ended fund and a share. Both variants have their advantages and disadvantages, which are worth familiarizing yourself with using our guides.
The capital of PLN 50,000 is also an excellent starting point for the purchase of precious metals. In this amount, both gold and silver are within reach. When investing in precious metals, it is important to take advantage of the offer of respected and proven mints with a rich history, which are widely trusted around the world. In this way, funds are better secured, although of course it is difficult to expect a quick return.
Individual or collective savings programs, including m.in IKE, IKZE and PPK, also turn out to be a good choice. Due to their specificity, they are relatively safe. In addition, the investor receives access to financial markets and can benefit from tax preferences and subsidies.
In order to protect your funds, it is worth thinking about a bank deposit. Although with high inflation it does not give you a chance to multiply your savings, it does allow you to protect them against loss of value. It is worth familiarizing yourself with the offers of various banking institutions and placing funds on a deposit if you do not want to invest in riskier instruments.
It is also worth investing less capital in yourself. It may turn out that one’s own education will bring much more benefits in the long run, than buying assets. With tens of thousands of zlotys, you can invest both in education in Poland and abroad. Although this type of spending of funds is difficult to link with direct material gratification, it can bring benefits throughout life.
When investing, it should be remembered that none of the instruments gives a 100% guarantee of return. Therefore, we recommend that you focus on diversifying your investments and betting on several unrelated options. This reduces investment risk and prevents fluctuations in one market from affecting all the money you invest. We encourage you to read our other guides and to invest consciously regardless of the level of capital you have.