The 10 best investments in 2024 – how to invest your money wisely

Currently, private households are struggling with comparatively high inflation. In the long term, inflation can devalue your money and contribute to you being able to buy fewer and fewer products and services for the same amount. You may wonder how you can invest your money to effectively counteract inflation. In this article, we will show you the 10 best investments!

What are investments?

Fighting inflation, achieving financial freedom, generating higher returns, providing for your family or making provisions for old age – there are many reasons for investing money. It can be confusing to get an overview of the various investment options.

Investments are defined as tangible assets or objects that are used to build up wealth. It is assumed that investors can profit from an increase in value by buying cheaply and selling later at a higher price.

The 10 best investments

“What should I invest in?” is a question many beginners ask themselves. Below, we’ll show you 10 different investments. These have various advantages and disadvantages. Make sure that your investment is a perfect match for your goals and your investment strategy and that you select the most lucrative investment for you with no risk, so that you can build up a fortune in the long term.

1. Exchange Traded Funds

An ETF, or exchange-traded fund, is a fund that tracks an index. Investors pay into a common pot whose securities have already been selected in advance. Depending on the ETF, investors can invest in different financial assets, such as bonds or shares.

One example of such an index is the DAX. An ETF on this index contains the 40 largest companies in Germany. With the help of this investment, it is very easy to invest in a large number of companies with just one investment. A hydrogen ETF, for example, invests in companies related to hydrogen.

The aim of an ETF is to achieve the return of the respective index. Unlike active funds, it does not try to generate an excess return. This also has an impact on the fees of this investment: ETFs are comparatively inexpensive.

This asset is particularly suitable if you want to invest wealth over the long term. The goal can be, for example, retirement planning, saving for your own children, for a driver’s license or an education at a later date.

The investment horizon should be at least 15 years. This long period of time allows investors to reduce the risk of the investment and to benefit from compound interest. In this case, profits made are reinvested to generate further interest. ETFs offer you the following advantages:

• Transparent
• favorable
• Diversification or risk spreading to increase security
• Flexible and liquid
• Easy to understand

98/100

Points

1,300 ETFs suitable for savings plans

controlled by BaFin

2.6% interest for new customers

TO THE PROVIDER*

2. Time deposits and bonds

A fixed-term deposit account allows you to invest your money for a specific, pre-agreed period and at a fixed interest rate. The fixed agreement means that your money is not subject to interest rate fluctuations.

You can determine how long the terms are. If you want to access the money quickly, you can opt for a short term. The biggest advantage of this investment is the high level of security. A fixed-term deposit account is particularly useful for investing your savings.

Bonds are issued by governments, banks, companies or institutions to raise money. As an investor, you can lend your money and thus benefit from interest and possible price increases.

Government bonds from certain countries, such as Germany, have a high credit rating and are considered very safe. They can serve as a security in your portfolio, although it is hardly possible to generate returns.

Other countries with poorer credit ratings have a higher chance of generating returns. However, these have the disadvantage of coming from economically weaker states, and it is possible that the corresponding countries may become insolvent.

3. P2P loans

An alternative to a high-yield ETF is P2P lending. This involves the granting of a loan from one private individual to another. This trade is made possible by so-called P2P platforms. Unlike conventional loans, no bank is needed.

P2P loans are characterized by their high degree of flexibility. As an investor, you decide on the loan terms, the investment amount, the investment country and the diversification. P2P investments offer high returns but also involve a higher risk.

To reduce this risk, it is recommended to diversify across different types of loans. To support investors, borrowers are categorized by creditworthiness. You can use this to adapt your investment strategy to your risk profile and invest in loans with different levels of risk. You can further increase diversification by using multiple P2P platforms.

Besides the risks mentioned, there are also some advantages of P2P loans:

• attractive potential returns
• Low investment amounts possible
• Opportunity for diversification
• Automated investing through tools
• Increased flexibility (individual settings such as preferred investment amount or terms)

98/100

Points

1,300 ETFs suitable for savings plans

controlled by BaFin

2.6% interest for new customers

TO THE PROVIDER*

4. Real estate

There are different ways to invest in real estate. A classic example is buying a property for your own use as a component of your retirement planning. After paying off the mortgage, you have lower housing costs and can benefit from the increase in value.

It is also possible to buy and rent out real estate. Regular rental income is a popular way of increasing one’s income. The location and condition of the property are crucial factors here. In this area, sufficient expertise should be available, as different aspects such as maintenance costs must be taken into account.

Perhaps you are looking for an easier and cheaper way to profit from the real estate market. One possibility is offered by real estate funds. Investors pool their money in a pot that enables others to finance real estate projects. Examples would be hotels, residential real estate or retirement homes.

Typically, real estate funds invest in a variety of buildings to reduce the risk of the investment. Investors can benefit from rental income, sales revenue and the increase in value of real estate stocks.

Typical risks of real estate funds are loss of rent or depreciation. Depending on the location of the real estate, there may be exchange rate fluctuations. Rising interest rates can have a negative impact on the value of buildings.

5. Investment funds

Investment funds invest their money as profitably as possible in different asset classes. Examples would be bond funds, equity funds or real estate funds. The aforementioned ETFs are a sub-category of investment funds.

A fundamental advantage is the distribution of your assets across different securities. Funds can be bought and sold during normal stock market hours, which ensures liquidity. Nevertheless, a long-term investment horizon is advisable to reduce possible risks.

The risks of investment funds differ, sometimes greatly, depending on the underlying asset. Bond funds, for example, are comparatively low-risk. They invest in fixed-interest securities. When choosing investment funds, pay attention to your individual risk appetite.

Certain equity funds can be significantly riskier. Some invest only in certain countries or sectors, which reduces diversification. If you are interested in specialized funds, it is advisable to add comparatively safe investments to reduce the overall risk. Learn more about index funds vs ETFs here.

6. Shares

Perhaps you have already wondered how you can make money from shares. A share is a security that allows investors to become co-owners of a company. By purchasing a share, you as an investor receive various rights. For example, shareholders are invited to the Annual General Meetings and have voting rights.

As the owner of a share, you can benefit from dividends. These are the distributed profits that are paid out to shareholders when the company is doing well. Another possibility is a return on investment due to an increase in the share price.

Shares offer attractive opportunities for returns, but require sufficient expertise. Investors try to find undervalued companies through intensive research and analysis in order to profit from subsequent price developments. Investing in individual shares can be risky if an investor has no experience and does not diversify sufficiently.

In addition, you should only invest money that you won’t need in the next few years, as shares are subject to fluctuations. If you are sure that you can do without the money for the time being, you will not be at risk of having to sell at a bad price.

95/100

Points

Very good app

Shares and savings plans from just €1

3.25% interest on the settlement account

TO THE PROVIDER*

7. Raw materials

Investors can invest in a variety of commodities, such as oil, gas or agricultural commodities like wheat or coffee. In doing so, speculators try to profit from price changes.

Currently, increased demand and scarcity of raw materials is leading to higher prices in some cases, making raw materials interesting for investors. There are different

• Certificates
• Shares
• commodity ETCs
• commodity ETFs

Depending on the type of investment, investing in commodities can be very risky. Beginners should not invest in commodity ETCs or certificates. If you are interested in a commodity ETF, check the exact composition and make sure that it is sufficiently diversified across different commodities.

8. Precious metals

A gold investment has long been considered an interesting investment and an opportunity for the security module. Other precious metals are also available, such as silver, palladium, gold or platinum. Precious metals have numerous industrial applications and are in limited supply.

Gold is considered a crisis currency because its price often moves in the opposite direction to shares, and is thus used to balance a portfolio. In the past, gold prices usually rose when there was a great deal of uncertainty in the markets.

One disadvantage of gold is that you will hardly make any return. In addition, there may be exchange rate risks and cumbersome storage. It can be dangerous to store gold at home. Another option is to use a bank safe deposit box. In these cases, there are additional costs.

Investing in precious metals with the help of ETFs is less complicated. However, there are no special gold ETFs, but commodity ETFs that include gold, among other things, are an option. With this type of investment, you avoid problems associated with storage. In addition, you can invest in other commodities, thereby reducing the risk of the investment.

9. Antiques & art

In some cases, a passion for collecting antiques and art can lead to a financial investment. Examples include paintings or furniture by well-known designers or with an appropriate age. Antiques can be bought at flea markets, auctions or in specialized stores.

Particularly in this area, it is necessary to have a certain interest in and knowledge of antiques. It is important to stick with reputable dealers. If you are not familiar with the subject, you can seek advice from independent experts. Beginners often have little chance of realistically estimating the value of an item or recognizing worthless reproductions.

For quality items, a stable increase in the value of the investment is possible. Another advantage is the fact that if an item is held for at least a year, the sale is tax-free.

89/100

Points

Sustainable returns of 8-14% per year

Money available again every day

2% starting bonus on your investment

TO THE PROVIDER*

10. Cryptocurrencies

Since 2008, digital currencies have developed and attracted the interest of numerous investors. The investment Bitcoin, the first crypto currency, is particularly popular, followed by Ethereum. Numerous smaller currencies followed. Digital currencies are now used as a means of payment by a range of providers.

The innovation behind cryptocurrencies is the blockchain. This is an open-source software that contains expandable lists of tamper-proof data sets. This system is popular because of the anonymity it offers.

In addition to the existing advantages, there is also the opportunity for returns through an increasing price development. However, there are also some risks to consider:

• Strong fluctuations: It is impossible to predict how certain currencies will develop in the long term.
• Small projects are particularly risky.
• Not all crypto exchanges are regulated and there is no deposit insurance.

70/100

Punkte

Yield: 6.75 -11% interest

Investors: over 180,000

€5 bonus upon registration

TO THE 
PROVIDER*

Conclusion: a mixed portfolio of the most lucrative investments.

Investing money through investments is an essential part of a financial plan. Investments enable you to achieve different goals, such as providing for your own family, achieving financial freedom, providing for your retirement or saving for your children.

There is no general answer to the question of which is the most lucrative investment. All financial investments have different opportunities and risks. In any case, an asset should suit you, your individual strategy and your risk profile. In addition, your portfolio should consist of a security component and a return component.

A money market account or government bonds with a good credit rating are suitable as a safety net. Although they offer little chance of a return, you can store your nest egg in a money market account. Investing in gold can also provide security in difficult economic situations.

If you are interested in long-term investments with attractive potential returns, you could find out more about ETFs and P2P loans. These enable you to build up wealth at a comparatively low risk if you follow the basics of investing. Learn more about ETFs for beginners or ETFs in Europe.

FAQ – Frequently asked questions about “the 10 best investments”