How to invest 50,000 euros ? What are the best markets to bet on? When you have put together a sum of this kind, you will certainly not feel rich or a great capitalist, but we guarantee that you will have access to markets that others can only dream of.
You can also invest in the stock market in an intelligent and structured way, with effectively diversified portfolios, strategies to minimize risks and make your earnings more likely.
You will have to try first of all to understand the markets and above all to avoid all the traps of banks, financial promoters and institutions.
Today, those who really want to achieve results by investing 50,000 euros on the stock exchange or even another sum, must necessarily begin to think for themselves: there is no one who can take better care of our interests than we would do ourselves.
And this is even more true in a world where banks and insurance companies have been living in symbiosis for several years now, to sell financial products at very high cost, where the certain gain is only in favor of the banks themselves.
The good news is that today, especially with the capital you have, you actually have access to the markets thanks to neutral brokers, who do not recommend this or that product but rather offer you a platform for investments that you will then manage on your own.
An example is 24option, a broker that allows you, whatever the amount you want to invest, to operate directly on all the main world markets.
We have prepared a 10-point analysis for you, which will analyze on the one hand the best methods for investing and on the other hand it will indicate low-value investments, but always offering you an alternative.
Before continuing with the rest of the article, take a look at the table below: it shows you the platforms recommended by our team to invest in the online stock market (free practice account to test and understand how you are).
1. Mutual funds are a scam, or almost
It will certainly seem like a very strong statement. The mutual funds, direct or hidden inside products such as unit-linked policies, life insurance policies and pension funds, are 99% products to avoid.
How do mutual funds work and why not invest even a portion of your 50,000 euros? These are portfolios that are administered by management companies, which buy and sell securities for the purpose of maximizing profits for fund participants.
There are too many problems that are related to this mode of investment, problems that we should always keep in mind before choosing any of these products:
- Very high costs: mutual funds (and similar products) travel quietly above 2% of annual commissions, whether they win or lose, whether there are profits or not;
- Transparency: there are rules for each fund, although purchases of this or that title are often linked to personal relationships or in any case between the banking group and the issuer of the security itself. This turns into a conflict of interest that we will necessarily have to consider as harmful to our portfolio;
- Inadequate returns: the data speak for themselves. There are very few funds that are able to have returns above the reference benchmarks. This means that we are paying very high fees without actually having any kind of advantage.
What we have just stated applies not only to mutual funds, but to all similar products, such as RIPs, unit-linked policies, pension funds.
Alternative to mutual funds: eToro copy trading
As an alternative to mutual funds, if you really don’t want to manage your portfolio directly, there is eToro copy trading, a system that allows you to copy the best traders of the platform with just one click.
So you won’t have to manage your wallet directly but you’ll still have a management that can show results and above all it doesn’t apply such high commission costs.
When savings are managed, you can be sure that you will not be the first beneficiary.
2. The deposit account? You are actually losing money
The second tool that has become very popular in recent years, both among those who have capital close to 50,000 euros, and for those who have perhaps less to invest.
The deposit accounts, below 100,000 euros, are considered as completely safe and this is certainly true, given that they are covered by the Interbank Guarantee Fund, which means that even in the event of the bank’s suffering, it will be the fund itself. cover up.
As always, however, we repeat on our pages, the relationship between risk and potential gain is always the opposite. When an investment is practically guaranteed, the potential gain is. .. practically zero. Indeed, if we were to take inflation into account as well, all the deposit accounts that are currently offered in Italy are negative.
Yes, you can invest in a safe way, but aiming to earn more
The good news is that you actually have alternatives that are just as safe, which can still offer you higher returns. There is not a single one: the best thing is to manage your capital differently, by contacting a broker who is able to offer you access to a large number of markets.
3. With 50,000 euros to invest, you must also think about the long run
50,000 euros, we will never tire of repeating it, it is a sum that allows an interesting organization of capital and above all a much more articulated approach to the markets.
What do we mean? We intend to say that although it is more than legitimate to direct part of the sum towards what are short-term strategies, it is also right and proper to think about the long term.
There are different markets with an interesting time horizon that can offer you adequate returns and above all protect you from risks.
We’ll talk about it in the next section of our 10 tips.
4. The stock market offers you a lot in the long run
The stock market is less and less publicized by banks and financial planners. The reason? Makes very little for them and too much for the customer. With an adequate time horizon of 7-10 years, the stock market is the one that offers the best returns, given in hand.
This means that if you allocate at least a portion of your 50,000 euros to the stock market, in the medium and long term you can reasonably expect good results, even without risks.
What you need in this case is a solid CFD broker, which has been operating for many years now and offers you a great choice in terms of stock markets. An example of this is for us Markets.com, which allows you to invest in all the major stock markets in the world and which guarantees you low commissions and full freedom.
Think twice before investing in shares through the bank
What we advise you about is that banks should remain the last choice when choosing to invest in the stock market. We are in front of a channel that indeed:
- It has very high costs, because the banks charge fees up to 100 times higher than those of CFD brokers;
- It offers poor platforms, which do not allow good technical analysis and intelligent management of your portfolio;
- It does not offer access to all the best markets, which means that unfortunately you will have to miss a lot of opportunities.
Today you have much more interesting alternatives and they allow you to have much more correct access to the markets, putting you immediately on par with the real professionals of trading.
5. Cryptocurrencies: a world to be evaluated for a portion of your 50,000 euros to invest
There has been much talk, perhaps too much, of cryptocurrencies. Bitcoins and companies have offered incredible returns over the past few years and this has attracted a large number of late investors, despite the fact that banks continue to ignore this type of investment.
We too have had the opportunity to recommend this type of investment. However, if you have 50,000 euros to invest and you want to look at least to organize an investment that covers you from the risks, you will have to invest in only one part of your capital in cryptocurrency and once again choosing those that are brokers that offer you access to multiple markets.
You can think of allocating 5%, 10% or even 20% to Bitcoin, Ripple and Ethereum. But you will have to do it in a structured portfolio, which you can only build with those that are the brokers that really offer access to the best markets.
6. The Post Office is not the ideal place to invest your 50,000 euros
Italy unfortunately suffers from an enormous ignorance in financial matters, an ignorance that slowly even sites like ours are trying to unhinge. What do we mean? We mean that we have always turned, much more than necessary, to institutes such as Poste Italiane, which in addition to functioning as freight forwarders have always offered financial products as well.
Yes, even the classic booklet is a financial product, which unfortunately now offers ever lower returns, very close to zero, even before inflation.
Today Poste Italiane is an operator and intermediary that has evolved a lot, offering today a set of products that is identical to that offered by the banks. We do not have any prejudices for Poste Italiane, which are among other things perhaps the most solid financial operator in our country.
However, there are some issues that we will necessarily have to face, especially when we want to go and invest large sums like 50,000 euros:
- Super safe products, like booklets, make exactly like the other guaranteed products, that is zero;
- Managed products have no higher yields than banking ones and have comparable costs. When you choose a fund, pension or not, managed by Poste Italiane, you are buying very expensive products, with very high commissions and equally uncertain returns.
It therefore makes no sense to allocate even just a portion of your capital to postal products, which are as secure as the banking products and which unfortunately have no advantage whatsoever.
Even in this case, the self-employed makes for three.
7. Forex can also help us invest our 50,000 euros
50,000 euros are starting to be many, or at least a sum sufficient to have much more complex investments. This means that they also allow us to think of markets like Forex, which we have described and reviewed many times on the pages of this site.
Forex is a market that can offer excellent returns and that can above all help us develop skills that we can then also exploit on other markets.
The Forex is a highly technical market, where it makes the difference is the ability to be able to turn to a good broker. There are several in the sector, although we feel we can recommend one like 24option – here to preview its investment platform, which allows you to invest in all the major Forex pairs with zero commissions, instant order execution and lots of other.
8. 50,000 euro – sure you should invest in the brick?
Investing in brick is another of the Italian dots, one of those extremely hard-to-die dots that in reality never offered much satisfaction.
What leads us to think that the brick has always made incredible sums is the fact that nominal prices, at least compared to 50 years ago, are obviously enormously higher and those who inherit are with wealth, once again nominally, a lot greater than spending to buy.
In reality, net of inflation, investments in bricks had an income comparable to that of less risky bonds. What does this mean? It means that actually the investment in brick is much less profitable than it might seem!
A self-managed financial portfolio, if diversified, can offer much higher returns and above all protect us from the risks that, even in the real estate sector, exist.
Just think of those who bought before the 2009 crisis!
9. If you want to be guided, Copy Trading is a great opportunity
If you still don’t feel able to take care of your finances, the best way to approach the world of online trading is to turn to services such as the eToro platform Copy Trading, a system that allows you to really copy the best traders on that platform, choosing them also by type of investment and risk they run on the markets.
This also translates into a huge advantage over mutual funds or other types of bank managed investments. You don’t pay commissions and you have the same benefits.
10. Don’t trust those who offer you guaranteed earnings
Not only professional scammers, but today banks and insurance companies also offer products with guaranteed returns or in any case covered capital, in the sense that you will never lose what you have invested.
In reality, things are not really like this: insurance companies with guaranteed capital, however, are inclusive of coverage and management costs, which means that we can still lose part of what we have invested.
Those who offer you this or that incredible system to make money from the comfort of your home, is cheating you 100%.
It is true that financial markets can offer you excellent profits, but it is also true that you will have to apply yourself to get results. It is not a fairy and magical world, but a world of opportunities for those who want to commit themselves to understanding, studying and understanding.
Conclusions: online trading is the best way to manage your 50,000 euros
50,000 euros are an important sum, which means you pay more attention to capital and finances. The best way to manage this type of capital is to look out onto the markets, possibly independently, and try to organize your portfolio in a reasonable manner.
On our site you will find everything you need both to learn what is needed on the markets and to improve as an investor.
With a little study you can only get excellent results.