If you have reached that point where you have savings and look to invest AED 2000 or less, you are definitely off to a good start. But, if you have never invested before it becomes difficult to figure out, how should you invest your money?
Before you decide, it’s important to consider your investment goals and the time frame for investing AED 2000. Ask yourself these questions to make a smarter choice. If you want to build your wealth, investing can be a great way to get ahead financially and achieve your long-term financial dreams. You don’t need a PhD degree to get started as an investor or a minimum amount of money, to begin with. No matter what or how small the amount is, be it AED 100, 300, or 1500, the right strategy to invest in is the key way to get the ball rolling.
If you have short-term goals – for example, buying a new car or next year’s vacation – It’s perhaps not sensible to invest money at all. Instead, keep it safe with saving accounts and term deposits. On the other hand, assuming that you have long-term goals- retirement being the most common – you should be investing that money. Come up with the options to keep growing your money for the next few years. Here are the 5 smart ways to invest AED 2000 in the UAE.
1. Invest AED 2000 in stocks
For those thinking about how to invest in the low-net-worth segment, investing in stocks has become more popular and affordable. You don’t need thousands of Dirhams to get started buying shares. Even with AED 2000, it is possible to own a well-diversified portfolio of individual stocks. But for those who do know, it’s not for those people who experience sleepless nights after losing a small amount of money. You should be prepared to experience both ups and downs.
Buying shares means becoming part-owner of the public company. The share price with time becomes more valuable when the company grows and performs well. So, you start earning a profit if you decide to sell it to other investors. However, you need to decide if you want to go for individual stocks or use an online brokerage service. Regardless of which option you decide, it is wise to have a diversified portfolio of stocks by investing in several companies.
2. Invest AED 2000 in Exchange Traded Funds
Just like a mutual fund, exchange-traded funds are an easy way to get started with a lesser amount of investment. Typically, ETFs are a type of investment that allows investors to buy stocks, bonds, and other assets. They can be a popular choice for a diversified portfolio as they can invest in hundreds or thousands of commodities all at once.
You can use a brokerage account to purchase ETFs at low costs, offering decent returns at the end. However, unlike mutual funds, ETFs are traded on major exchanges the same way stocks can. Because of this, you can see fluctuations in the price of ETFs throughout the day like stocks are brought and sold in the market.
3. Mutual Funds
For those investing for the first time or if you don’t have the time to choose or manage the investment, mutual funds can be an effective option for you. Think of it like this, a mutual fund is a collective investment where you invest your money into a pool of capital from multiple investors. This allows you to be a part of high-profile shares which you won’t be allowed to invest in with AED 2000. Your portfolio is actively managed by professionals who make decisions on your behalf such as selecting the stocks or bonds.
All you need to do is put aside the money you are planning to invest and decide the amount for each investment. The best part is mutual funds minimize the risk to your portfolio when it goes down which is achieved by diversification of not investing in just one company. It offers your investments to spread over many holdings.
4. Invest in Gold
Throughout the centuries, people have looked at gold with value and as a good investment opportunity. It has always worked as insurance against tough times when societies used to fall back on gold during inflation. The prices of gold tend to always rise in opposition to the economic stability when the currency is losing its value. According to the data, when looking at historical prices the price of gold was AED 1000 per oz in 2001 which kept on increasing rapidly every passing year and in 2022 it is hitting above AED 8000 per oz.
You are not restricted to buying only gold coins or gold bullion but you can invest in gold mining companies. It does offer dual benefits of security and wealth creation as an investment. Therefore, it can be a great investment in the right circumstances.
5. Invest AED 2000 in Real Estate
Investing in real estate in the UAE can be a great option to grow your money. You don’t need thousands of Dirhams to get started buying properties but the truth is in today’s world there are plenty of options where you can invest AED 2000 or less. Smart Crowd is one of the best real estate investment platforms which offers to invest AED 2000 in properties digitally with the ease of your phone. This makes it more convenient and with its low minimum investment amount, it becomes more affordable.
On the other hand, Getstake is another UAE-based online real estate platform that lets you achieve ownership of the property with just AED 1. Perhaps you can retire comfortably by investing your money in real estate that will keep increasing in value over time. It is important to keep your wealth growing and with real estate, it might seem like a long-term commitment but it isn’t.
Choosing the right investment for yourself is an important first step. As a beginner, no matter what you choose it is crucial to tackle everything on your own without a guide on your side who has experience. That’s where we come in! The fact that you read this article means you are serious about doing the right thing with your money instead of keeping it in a savings account. As you can see AED 2000 is more than enough to get started with investments that will lead to numerous rewards in the future. Invest AED 2000 or more today to grow your wealth.