Owning a sum of 40,000 euros is of significant benefit to those who have it. However, it can also lead to many questions like how to invest this money. Several placements are possible.
A poor investment, however, a poor investment can lead to a significant loss. We invite you to see in this article the investments to favor with the advantages and disadvantages accompanied by the expected returns for your 40,000 euros.
Which Placement for 40,000 €?
To invest your 40,000 euros, here is a list of investments that we can offer you:
- Invest in the stock market with the broker DEGIRO
- Investing in Forex with Tech Explorist AGENCE
- Invest in crypto currencies with the broker eToro
- Invest in gold
- Invest in real estate
- Invest in SPCI
- Invest in crowdfunding
- Invest in a business
- Invest in Pinel
- Invest in an ETF
- Invest in life insurance
Invest 40,000 euros in the stock market
Investing in the stock market is the best way to grow your capital. To ensure a return on investment, it is advisable to diversify your investments.
Investing in the stock market can involve risks, as with all other investments. We suggest you choose the shares on the stock market where you are going to invest.
Below is a list of the best stocks to invest in 2020.
- Apple
- Amazon
- Netflix
- You're here
- Orange
- EDF
- BNP Paribas
- LVMH
You can also choose to invest in one of the CAC's 40 companies. It is desirable knowing that its companies are among the most dynamic listed on the stock exchange, especially on the French market.
Best brokers to invest 40,000 euros in the stock market
DEGIRO Broker at competitive rates
eToro - Zero commission on shares
Vantage FX - Better leverage on stocks
How much to invest in the stock market?
Having a capital of 40,000 euros is already a very important sum if you want to invest in the stock market. Especially since 10 euros is enough to buy a share in the stock market.
If you want the investment to be more profitable, it is advisable to invest in as much stock as possible that you want. If you want to go further, also see How Much to invest in the Stock Market ?
How to place 40,000 euros on the stock market?
- Choose which stock you want to invest in
- Choose the broker who offers the stock in which you want to invest. We suggest you choose DEGIRO.
- Open an account on DEGIRO
- Pay in the capital that you are going to use for your investment.
- Go to buy your share
What return can you expect for your 40,000 euros?
Action | Yield |
Apple | 3.2% |
Amazon | 8.4% |
7.6% | |
Netflix | 7.5% |
You're here | 4.3% |
5.2% | |
Orange | 7.2% |
EDF | 4.3% |
BNP Paribas | 6.5% |
LVMH | 1.2% |
The table we have presented above shows the performance of the best stocks to invest in 2021.
However, the return on investing in stocks very depends on the conditions and conditions of the market in which you have invested.
Benefits of investing in the stock market
- Grow your capital thanks to the chosen action (be sure to choose your action)
- A possibility to invest from a tiny amount. In the purse 10 euros is the minimum sum required.
- A possibility to diversify its actions to invest.
- A possibility of obtaining dividends
Disadvantages of Investing in the Stock Exchange
- A high risk if you do not choose to diversify your actions
- Need to know the basics of stock market actions.
- Any panic can lead to reselling the shares
- A minimum of market knowledge and analysis is recommended
Invest 40,000 euros in Forex
FOREX is one of the most traded markets in the world. It concerns the exchange of different currencies in a decentralized global market. Forex is always traded in currency pairs.
Investing in forex 40,000 euros is an excellent investment. However, it is useful to know that not all currency pairs have the same level of popularity.
The most famous pairs of majors are:
- EUR / USD (euro / dollar)
- USD / JPY (dollar / yen)
- GBP / USD (pound / dollar)
- USD / CHF (dollar / Swiss franc)
How to invest 40,000 euros in Forex?
- Open an account with Tech Explorist AGENCE
- Fund the account
- Invest the 40,000 euros
What return can you expect for your 40,000 euros?
Yields vary depending on the currency pair chosen. It should not be forgotten, however, that strategy also plays its role in the returns got.
Using leverage can also increase earnings. However, it is useful to know that the annual rate of return is between 12 to 120%
Benefits of Investing in Forex
- Possibility of using leverage.
- Trade open from Sunday to Friday, 24 hours a day
- Possibility of being in a buy or sell position
- Easy accessibility for everyone with minimal investment costs
Disadvantages of Investing in Forex
- If the leverage multiplies the gains, it also multiplies the losses in the same way
Invest 40,000 euros in Crypto Currency,
interests the cryptocurrency that once made people skeptical has now become a bargaining chip, but also an excellent investment. Many crypto-currencies continue to emerge, proof that it is of interest to more and more investors.
In which cryptocurrency to invest 40,000 euros?
To say that one cryptocurrency is much better than another is difficult. However, we have selected two of the best known to help you with your investment research.
- Invest in Bitcoin (BTC),
Created in 2009, bitcoin is today not only the first crypto currency to have existed, but it is also and without a doubt the most famous of the crypto currencies.
10 years after seeing the world, bitcoin is ranked as the sixth world currency and continues to strengthen.
Indeed, in April 2021, the value of bitcoin rose to $ 63,000.
- Place in Ethereum
In 2019, atheroma ranks second in the cryptocurrency, market after Bitcoin.
It is based on the Blockchain.
Although many investors rely solely on Bitcoin and Ethereum, it is best to diversify your investments.
We suggest you add other crypto-currencies to your investments according to your own analyzes and according to your strategies.
What return can you expect for your 40,000 euros?
Although the return got can depend on several factors, such as the strategy used, the amount invested, the choice of cryptocurrency to invest, we can still give you some ideas on the potential returns.
A sharp rise in the value of bitcoin: in mid-April 2021, this time reached a peak of more than € 54,000
A trend for price improvement in the future. This is because bitcoin is trading at an exorbitant price.
Birth of several new crypto-currencies nowadays, a sign of great interest in virtual currency.
How to invest 40,000 euros in crypto currency?
- Step 1 Choose a broker who offers the crypto of your choice, like eToro
- Step 2 Open an account on eToro
- Step 3 Use the capital of to make a first deposit
- Step 4 Open a buy position and buy the chosen crypto
Benefits of Investing in a Crypto Currency
- As we are talking about digital currency, there is no need to go through banks or traditional institutions.
- Preservation of the identity of the sender and recipient.
- Its value is not likely to decrease because of inflation like the euro or the dollar.
- Low transfer cost compared to traditional currencies.
Disadvantages of Investing in a Crypto Currency
- Low impact on the public
- Vulnerability to scams
- Probable risk of data loss or forgetting passwords
Invest 40,000 euros in gold
Another type of investment that we can offer you is to invest your 40,000 euros in gold
Return hope for 40,000 euros
Becriteria,BeThe price of gold is very variable, it can go up as well as it can go down very quickly. You have to be very careful about it. The price of gold depends on severacriteria,ia, such as its rarity, the state of conservation or the investor's appreciation of the gold in question.
It is therefore important to know the exact value of gold before investing at the risk of paying too much gold compared to normal prices.
How to invest 40,000 euros in gold?
- Open an account with Tech Explorist AGENCE
- Fund your Account
- Open a buy position with the currency of your choice
Benefits of Investing in Gold
- Heritage at your fingertips
- Gold is a universal means of payment that can be used in the face of hard times.
- No taxes or duties are subject to neither holders nor buyers
- Easy accessibility for everyone
Disadvantages of Investing in Gold
- Change in the price of gold based on several factors
- Overexploitation of mining companies at the risk of profit against investors
Invest 40,000 euros in Real Estate
Investing in real estate is a completely different type of investment that we offer you for your 40,000 euros. Indeed, investing in real estate can bring a very good return and much more than what you think. However, the contract will have a major role in the perceived return.
What return can you expect for your 40,000 euros?
- Commercial real estate:makes up: : it should be noted that this type of investment makes up a very attractive return with very stable demand.
- Parking space: for investments in atypical properties such as car parks, the yield is between 5 and 10%
- A guarantee or a lease contract:contract,guarantee,contract, it should be noted that a real estate investment increases in value in the long term. However, taking out a guarantee, such as a long-term lease contract can ensure the profitability of the investment.
- Diversification of investments: like the other investments mentioned above, diversifying your investments reduces risks and returns greater.
How to invest 40,000 euros in real estate?
To invest your 40,000 dollars, we offer these styles of real estate investments that you could make:
- Investment,RentalcomprisesRentalrental investment, which consists of using the rents collected monthly to promote the purchase of a property. The Pinel device will be put forward here by the legislator.
- investing in business real estate with a cheaper management cost.
Here are some other steps you can take to invest your $ 40,000:
- Choose the type of investment according to the budget
- Studying the location, the sector and the market is very important.
- The location will be a strategic asset for this type of investment.
- Do some research to know the rental prices as well as to know the potential competitors
- Choose the tenant and / or the promoter
- Establish a contract
We can also use specialized online sites to guide us throughout the investment.
Benefits of Investing in Real Estate
- Real estate is a sustainable heritage
- The value of real estate increases over the long term
- Financial security in times of crisis
- Insurance: like any investment, risks are to be expected. Unlike other investments, you can limit the damage in the event of a problem by taking out good insurance.
Disadvantages of Investing in Real Estate
- The real gains or profits are only really seen in the long term
Invest 40,000 euros in SCPI
The SCPI or Society Civile de Placement Immobilier is an investment company in which you can invest your 40,000 euros in shares in various real estate products.
These real estate will accord to the SCPI and can be private dwellings, warehouses, office or commercial buildings.
It should be noted that here the investor is not the owner of the said Real Estate, but he owns units or shares which will fix his income.
What return can you expect for your 40,000 euros?
The return will depend on the type of SCPI:
- Trefor Performance SCPIs, income is collected regularly quarterly. The returns received are quite high.
- Income is paid according to the share that the investor has invested. A large part will generate large profits.
- In 2021, the average return on investment in SCPI is expected at 4.33% if, on average, the return is between 4 to 4.6%
How to invest 40,000 euros on SCPI?
- Buy units for cash from an internet platform or directly with a management company.
- If you already have savings, you can consider buying the SCPI on credit.
- To invest shares of SCPI in bare ownership. This mechanism consists in making a temporary dismemberment (the investor will not receive income for a few years, but will benefit from significant advantages).
Advantages of Investing in a SCPI
- The SCPI is accessible to all
- The risks are limited, as the shares are spread over several properties
- An interesting yield,
- The SCPI is regulated by the AMF
Disadvantages of Investing in a SCPI
- The resale of units varies depending on the market
Invest 40,000 euros in Crowdfunding
Crow funding or participatory financing comprises financing projects from a substantive exchange between individuals.
How to invest 40,000 euros in crowdfunding?
To invest your 40,000 euros, we suggest you choose from the 3 types overgrow funding crow funding below.
- Crowd lendingcomprisescomprisesCrowd lending consists of granting loans to VSEs or SMEs. In return, the investor's reimbursement will be accompanied by interest rates.
- Greatcoat greatcoat is a way to finance a business by buying a share of the business. You will thereby become a shareholder in the company in question.
- Real estate crow funding will be an opportunity for the investor to finance a real estate project in line with his financial objectives.
Here the investor has the choice between investing in short or long-term projects. He can also diversify his investments to avoid potential losses.
What return can you expect for your 40,000 euros?
The return got in these types of investments depends on several criteria. It is quite difficult to predict the return you are going to get.
As it is about investing in projects, it is important that the project in question is fruitful and brings benefits for the company and for the investor.
In the first 6 months of 2021, the real estate crowdfunding interest rate reached an average return of 9.2%
Benefits of Investing in Crow funding,
- Choice between long-term investment (with a higher return) or profitable and flexible short-term investment.
- A wide choice of projects to invest.
- An investment without constraints or management fees
Disadvantage of Investing in Crowfunding,Crowfunding,
A risk of partial or total loss of investments if the project is doomed to failure
Invest 40,000 euros in a Company
40,000 euros is enough money to start your own business. However, it is important not to go headlong without thinking beforehand.
Market analysis is important. Indeed, the contexts in which the company will be launched and develop will determine the strategy to be adopted.
You can choose between:
- A Natural Person (or an Individual Company)
- A Legal Person (or a Sole Proprietorship with Limited Liability)
It's up to you to make your own choice on the status of the company.
What return can you expect for your 40,000 euros?
That we have 40,000 euros or more does not mean that we will have a glorious return. We can lose just as we can win.
The market, the outlook for the business, the economy, its competitors and other factors can affect returns.
Benefits of Investing in a Business
- For a sole proprietorship, the benefits accrue to its sole owner.
- Freedom in the project's choice to be set up
- Develop in a sector that we love
- Experiences to gain in several fields
Disadvantages of investing in a business
- Financial insecurity
- Start-up stress
- Lack of experience, which can lead to errors
Invest 40,000 euros in Pinel
The Pinel device is a device by which an investor commits to renting bare housing (without furniture) at a rate below around 20% of the market for 6 years.
In return, the investor will benefit from a tax reduction.
How to invest 40,000 euros in the Pinel device?
- To invest in Pinel, you must first assess your financial situation.
- Afterwards, you must verify the eligibility of your rental. You must rent the bare property not in furnished rental.
- Your home must be purchased new, for sale in future state of completion (VEFA), or must undergo rehabilitation / renovation work.
- Evaluate the price of your accommodation. It should neither be above the reasonable price to prevent customers from turning to your competition nor be below to avoid loss.
What return can you expect for your 40,000 euros?
As we are talking about rental housing, the return will be based on the rent.
Reduction,Do not forget the tax reduction, which will depend on the duration of the rental (minimum 6 years). As a sign, the tax reduction can reach € 63,000.
Below, you will find the tax reductions corresponding to the rental periods for overseas accommodation.
- 12% for 6 years
- 18% for 9 years
- 21% for 12 years
Benefits of Investing in the Pinel Device
- A tax reduction of up to € 63,000
- A possibility of extensions of 3 years
- A market in high demand
Disadvantages of Investing in the Pinel Device
- No resale is possible during the period of the engagement except in the event of death.
- Limited rent (less than around 20% of the market)
Invest 40,000 euros in an ETF
ETFs or Exchange-Traded Funds are financial instruments seeking to duplicate as closely as possible the evolution of a stock market index.
How to invest 40,000 euros in an ETF?
- Choosing the ETF to invest
- Find a broker offering ETF Stock Exchange - for example DEGIRO
- Register and open an account
- Make a first deposit
- Invest in ETF
What return can you expect for your 40,000 euros?
Tahe returns got will depend on the variation of the index followed. A little-known ETF is an ETF with little liquidity.
A dividend can only be got, it will be calculated according to performing the index.
Benefits of Investing in an ETF
- Secure investment at low cost
- Ease of exchange
- Opportunities to invest in multiple markets instead of a separate market
- A gain that can be very high
Disadvantages of Investing in an ETF
- Risk of loss of capital
- Currency risks for ETFs purchased in a foreign currency
Invest 40,000 euros in Life Insurance
For your 40,000 euros, why not invest in life insurance? Often confused with death insurance, life insurance is much more and makes up an investment opportunity not to be missed.
How to invest 40,000 euros in a life insurance?
Life insurance is a contract that is taken out with an insurance company or a bank.
It is up to you to choose the life insurance that you find most attractive. The ideal is to find out about the different offers and the investments and subscription fees.
What return can you expect for your 40,000 euros?
In 2020, the average remuneration offered by euro funds for life insurance contracts is 1.08%
To hope for a good return, prepare and accept the risks of such an investment like any other investment.
As this is a long-term or even a very long-term investment, the return will not be noticeable soon.
Wait before seeing the results of your investment.
Benefits of Investing in Life Insurance
- Fiscal advantages
- Makes up a means of saving
- Ideal for securing retirement
- Bottom not blocked
- Possibility to change the beneficiary (yes) of the insurance in the event of death
Disadvantages of Investing in Life Insurance
- Exit costs in the event of cancellation of the insurance
- A very long-term investment
Where to invest 40,000 euros in the short term?
- Invest in the stock market
- Invest in forex
- Invest in crypto currencies
However, to ensure your investment, approach trusted brokers like DEGIRO for your stock market shares. You will be reassured about your investments.
For crypto-currencies to eToro and for forex, to Tech Explorist AGENCE .
Where to invest 40,000 euros in the long term?
- Invest in Real Estate
- Invest in the stock market
- Invest in companies
- Invest in life insurance
- Invest in SCPI
Your 40,000 dollars can generate very large returns for you as well as very large losses.
There are a lot of risks involved in investing for the long term, however, and you need to be prepared for it.
How to make 40,000 euros grow?
To grow your 40,000 euros, it is advisable to diversify your investments. The risk of loss will be lower and you will have a better chance of having a return on your investment.
It's up to you to choose what kind of investment is best suited to you and meets your goals.
Conclusion: What to invest 40,000 euros in?
In the end, you can use your 40,000 euros for various investments. Now it's up to you to choose what to invest in.
Analyze the risks incurred according to your expectations and the investments you have chosen.
Remember that investing comes with risk. We encourage you once again to diversify your investments to ensure profitability.
Throughout your investment, it is important to work with trusted DEGIRO, Vantage FX or eToro brokers .
🔎Where to invest € 40,000?
If the investment horizon is less short term short term, life insurance in euros can Bea suitable solution a suitable solution to save 40,000 euros because the money is completely secure on this type of investment and the rates delivered until now were interesting. .
