How to invest with 100 pounds?

How to invest 100 pounds in real estate? What to do with a small saving? What to invest to make money with only 100 pounds of contribution? How to invest in the stock market with a small budget? Contrary to popular belief, it is not necessary to have 2,000 or 4,000 pounds in savings to invest to begin with. 100 pounds is not the end of the world, but it is already something. Here are x interesting investment ideas to invest your 100 pounds.

Invest 100 pounds in real estate: crowdfunding

Participatory investment, or real estate crowdfunding, consists of financing a real estate project by lending a sum of money to the developer. The transfer is made through specialised platforms, such as Fundimmo, Homunity or Lymo. Once the real estate project is completed, the money invested is returned to the investor, often after two or three years, with an additional interest of between 7% and 12% per year. This solution, which is increasingly popular with young investors (under 35), is a double winner:

the promoters find the means to finance their projects, in a perfectly legal way;

people have the opportunity to invest in the real economy with an attractive return.

That said, beware of the beautiful promises of crowdfunding campaigns. The return on investment can be promising, but is proportional to the level of risk. Investing in a real estate project is not without risk: 

  • the funds borrowed are blocked during the period of construction and marketing of the property;
  • Delays can be quickly prolonged.

Invest 100 pounds: bank investments

This is the first reflection of savers as soon as they begin to have a little bit of liquidity: passbooks such as Livret A, Livret de Développement Durable or Livret Épargne Populaire are ideal for investing 500, 200 or even 100 pounds. It must be recognised that they do not have much to offer in terms of profitability (0.50% for the Livret A since February 2020), they retain certain significant advantages:

  • are totally tax-exempt;
  • withdrawals and transfers are possible from 10 pounds;
  • the savings are available immediately;
  • the different brochures are cumulative;
  • the opening and closing of the brochures are free of charge;
  • it is possible to make transfers to your other accounts at any time.

However, it should be noted that savings accounts are not an investment per se but a preventive saving. A reserve of money available in the event of unforeseen or exceptional financial expenditure. 

Investing in the stock market with a small budget

It is possible to invest 100 or even 50 pounds on the stock exchange ! Some online brokers allow you to invest from 10 pounds and some shares cost less than 5 pounds. That said, it is difficult to invest 100 pounds in the stock market, because the shares are bought in full and not in part. It is not possible to buy ½ share or ¼ share, for example. You will need to buy shares that cost less than £100. 

In the stock market there is no such thing as zero risk. It is not uncommon for new investors to experience large capital losses in the first few months. That is why it is imperative to establish a budget for you. If this budget is £100, you have more to lose than to gain. That said, the stock market is also an option. We can take a very diversified index on global growth, such as the MSI World ETF Index.

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