What to invest CZK 100,000 in 2023?

(This article is NOT financial advice). The information in the text is valid as of 12.9.2023.

It's usually not a good idea without thinking to put all your money into an investment opportunity mentioned by a friend over a beer in between speeches. Every investor should find out as much information as possible about the intended investment and only then invest. Whether you have CZK 100,000 ready to invest or would like to evaluate a smaller amount, below you will find a basic comparison of investment assets in 2023 — from their performance to the degree of risk they entail.

Stocks and ETFs are having a wild season

Performance from 1 Aug 2022 to 31 Jul 2023: 11.11%

Risk level: She's high

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Investing in stocks and ETF funds has been like a rollercoaster ride lately. In 2022, markets experienced significant declines, including due to Raising interest rates by central banks all over the world. Stocks have faltered in the first half of 2023 (especially those in the United States), but the outlook for the next few months is rather uncertain due to the state of the world economy.

The best-known stock index, the S&P 500, has risen 11.11% over the past year, roughly matching its long-term performance. However, when investing in individual stocks or ETF funds, you need Reckon with a higher risk -- as last year showed, within a few months, some titles and indexes can fall as much as tens of percent.

Buying individual stocks then requires detailed analysis, which is not ideal for novice investors who want to have a minimum of worries about investing.

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The S&P 500 is a stock index that includes the shares of the 500 largest publicly traded companies in the United States. It is so well-known and popular among investors around the world that it has become synonymous with investing in stocks.

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Investown maintains a stable yield of around 10% at low risk

Performance from 1 Aug 2022 to 31 Jul 2023: 10%

Risk level: central

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While stock markets have fluctuated up and down, investors at Investown have enjoyed the entire past year stable returns of around 10%, namely at minimal risk. Thus, the performance of investments in loans secured by real estate was practically the same as in the case of stocks, but with the difference that investors could sleep peacefully.

Investment projects at Investown have High success rate and each of them undergoes careful analysis in order to keep investors' money as safe as possible.

Investing on Investown is simple and Anyone can handle it, including beginners.who are not versed in the world of investment. At the same time, you do not need to invest 100 000 CZK, you can start gradually, for example from 500 CZK.

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Investors at Investown have enjoyed stable returns of around 10% all year, with minimal risk.

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Savings account still won't protect against inflation

Performance from 1 Aug 2022 to 31 Jul 2023: 4-5%

Risk level: It's low

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When it comes to investing, novice investors in particular often bet on a savings account at a bank. But it's not really an investment in the true sense of the word.

Leaving money in a savings account is risk-free (or only minimally risky), but returns correspond to that too. Interest rates on savings accounts with Czech banks are currently around 4-5%, which not even close to covering inflationwhich was 9.7% in June 2023.

Although interest on savings accounts in banks is at its highest in a long time, for most investors it makes sense to put only part of the income into them, for example, the necessary financial reserve.

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Bitcoin shot up, now stagnates

Performance from 1 Aug 2022 to 31 Jul 2023: 25.17%

Risk level: Very high

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Bitcoin and other cryptocurrencies attract investors who want to appreciate their money by tens of percent in a short time. Many of them will do this, but only at the cost of high risk. It is no exception that Bitcoin loses even a third of its value in a matter of weeks.
Between August 1, 2022 and July 31, 2023, the largest cryptocurrency posted over 25%, catching up with the significant losses of 2022, from May to July 2023, however, it stagnated. In general, experts recommend having a maximum of 1-5% of Bitcoin or other cryptocurrencies in the portolium, always depending on the situation and investment strategy of the particular investor, respectively, the degree of risk that he is willing to accept.
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There is a need to choose well among corporate bonds

Performance from 1 Aug 2022 to 31 Jul 2023: Corporate bond yields are between 5-10% over the long term

Risk level: She's high

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Corporate bonds are liked by many Czech investors, they invest especially in those with higher yields. However, as attractive as bonds issued by a particular company are (sometimes they promise interest even more than 10%), it is among them the need to choose carefully. For many corporate bonds, there is a high risk that the firm will get into financial trouble and investors will lose their money.

Much safer are government bonds, but they do not bring such attractive profits. For example Czech medium and long-term bonds It costs an average of 4.90-6.20% per year.

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Corporate bonds are securities issued by private firms in order to finance their further development with the money raised from investors.

Diversification is the basis

Traditional assets also offer investment in Precious Metals (for example, gold and silver), which, over the 5-10 year horizon, are more likely to lag behind other assets with a similar degree of risk. A separate chapter consists of purchase of physical real estate.

Whether the investor is more conservative and prefers lower returns at low risk, or on the contrary likes to take risks and aim for high profits, he should Always diversify your portfolio, that is, spread investments into different assets.

Read more about diversifying your investment portfolio in our next article.

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This article is not financial advice. Investown does not provide investment advice. This is an informative article with basic information about the options for investing in 2023. For specific advice, we recommend using the services of an investment advisor.

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