How Much Can You Earn by Investing €100 per Month?

Investing €100 Monthly: Strategies and Potential Returns

Regularly investing a sum of money every month is a strategy adopted by many savers who want to increase their capital over time without having large initial amounts available.
But how much does investing €100 per month yield?

Three Investment Ideas

Investing €100 per month may seem like a modest amount, but with a well-defined strategy, it can lead to significant results over time.
Here are three ideas that could suit you:

Capital Accumulation Plan (PAC)

The PAC is an investment strategy that involves the periodic purchase of units of mutual funds or other financial instruments with a fixed monthly amount.
Investing in stocks, ETFs, and bonds through a PAC allows you to benefit from market fluctuations, accumulating capital over time.
This investment method is suitable for those who want a disciplined and diversified approach to growing their wealth.

Government Bonds

Government bonds represent a very conservative investment option.
These instruments offer guaranteed returns and are accessible even to those with small capital.
They are particularly suitable for those seeking security and stability, with the possibility of subscribing to savings plans that allow periodic investments.

Deposit Account

The deposit account is a conservative option that allows you to obtain a return by tying up a sum of money for a certain period.
Although current yields are not high, this tool is suitable for those who want to protect their capital from inflation.

Investing €100 per Month in a PAC

Investing €100 per month in a PAC allows you to build a diversified portfolio that may include stocks, bonds, and ETFs.
The choice of asset allocation is fundamental in determining the risk and return profile.
Let’s see how asset allocation changes over different time horizons and the potential returns.

3 years: 10% stocks and 90% bonds
5 years: 20% stocks and 80% bonds
10 years: 50% stocks and 50% bonds
15 years: 80% stocks and 20% bonds

Scenario Analysis

In a balanced scenario, the expected returns for investing €100 per month are:

3 years: €3,627
5 years: €6,099
10 years: €13,567
15 years: €23,064

This scenario demonstrates how consistent accumulation and diversification can lead to significant capital growth in the long term.

Conclusion

Looking at the returns of different investment alternatives for €100 per month, the Capital Accumulation Plan (PAC) offers the highest potential return, especially in a long-term time horizon, thanks to diversification among stocks, bonds, and ETFs.
Next, the Deposit Account provides returns with lower profits compared to PACs.
Finally, Government Bonds, despite being a conservative choice that protects capital from inflation, offer the lowest returns among the three options.
Therefore, the choice of the most suitable investment will depend on your return requirements, risk tolerance, and time horizon.