Do you have some extra money and are wondering where to invest it? It is worth thinking about where to invest such an amount and whether to invest it all at once or in instalments. Because of inflation and a lack of willpower when spending, you could quickly lose your savings or the money you have earned. We will show you 5 options that are the most common today. We will also cover the basic rules that everyone who is starting to invest should know.
Basic rules of investing
Right at the start, you need to understand that investing does not mean high returns in a short time. It usually takes a while before you gain any money, that is, a profit, whether we are talking about investing in property or, for example, in shares. So be patient or, figuratively speaking, “forget” about the shares you have bought, and certainly do not check how they are doing several times a week. Other equally important rules:
- the higher the return, the higher the risk
- invest in smaller amounts (this applies doubly at the start, before you learn how the market works)
- diversify your portfolio (it is definitely better to have more products in your portfolio)
- get to know how the investment platform or asset works
1) Investing in property
This is usually the most common investment, and it is also fairly safe. It is usually a longer-term investment. Today, 1 million CZK (about 46,000 USD) will probably not be enough to buy a property, but if you are considering such a deal as an investment, you can take out a mortgage and rent the property out. The million will give you a decent starting point. Your rental income should cover your costs and the mortgage, and if there is still something left over from the rent, you are winning.
You can then sell the property, in line with the fixed-rate period (fixace), after 5 or more years. You can reinvest the money you earn, that is, the difference between the price you paid for the flat and the price you later sell it for, or spend it on something.
2) Gold as a rewarding commodity
Investing in gold is a good old classic. This is also a long-term investment, because to really earn something, you need to hold the commodity for 10 years or more. Experts agree that gold or other precious metals should make up about 5 to 10% of an investment portfolio.
3) Investing in shares
As we mentioned at the start, investing in shares and getting a return on them can take several years. If you invest as a beginner without help, it is generally recommended to start with Czech companies. If you want to trade directly on the stock exchange, we recommend starting slowly so that you do not end up regretting your returns. It is definitely good to know something about the company and to understand, at least partly, the field in which it does business and operates. You also need to be prepared for economic bubbles and for bull and bear markets. There really is a lot to learn.
If you want to profit from capital markets and do not want to pay too much attention to your investments, we can recommend ETFs. In this article, you can read about the advantages of ETFs compared with mutual funds. In general, with ETFs you invest in a whole group of shares or a whole sector. This is diversification within capital markets. You cannot expect astronomical returns, but on the other hand, most ETFs have shown an annual return of around 10% in recent years, which is very decent.
4) Crowdfunding, P2P/P2B loans
This method is a fairly new way of raising money. P2P means peer-to-peer, so people lend to other people, and P2B means peer-to-business, where people lend to companies. The loans are arranged through verified web portals, so you do not have to worry about becoming a victim of fraud.
The advantage is that you can choose from a wide range of loans, including secured and unsecured loans, and loans with or without a guarantee. People apply for loans for housing, cars or, for example, renovations. Companies apply for loans for investments or other projects to develop their business.
Returns are around 4 to 17%, and the higher the interest rate set for the borrower, the riskier the loan is for you and in general. The portals check the borrowers, but it can still happen that a borrower stops making repayments. So be careful and always choose carefully who you lend money to.
5) Bonds
Bonds are the most stable investment after property. Government bonds are even safer. However, the interest is not very high, which means your money will only grow by a few per cent. They are, however, suitable for people who are starting to invest. With this investment, you can also estimate how much money you will earn and when you will get your money back.
If we were to give a non-binding recommendation from this selection, we think the most advantageous and also the safest option is a combination of investing in stock markets (ETFs) and investing in property.
If you are interested in investing, also read Česká mincovna gold savings review or healthy finances.
USD amounts are approximate, converted at the Czech National Bank rate of 21.80 CZK per USD on 2 October 2026.
