I often hear people ask me how to invest on a small budget. These days, there are several interesting and quick investment opportunities 😉
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⚠️ The returns shown in this article, as well as the investments mentioned, do not constitute investment advice. Past financial performance does not guarantee future returns. Investing involves a risk of losing money!
A practical guide to making your money grow, even with limited resources..
You're wondering how investing with a small budget ?
Good news: today is accessible to all, And all this with just an internet connection! 😊
Whether you have 50 CHF, 500 CHF or 5,000 CHF to invest per month, there are solutions. simple, effective and suitable to make your money work for you.
In this article, I'm sharing with you:
- Why invest (even with a small budget)
- The best financial investments to begin
- Concrete examples (ETF, 3a account, real estate, etc.)
- Pitfalls to avoid (commissions, taxation, etc.)
- My top 3 for a beginner investor
- The possibility of investing in fractions (in part)
⚠️ Attention The returns mentioned in this article are based on past performance and do not guarantee future results. Investing involves risks, including the risk of losing your capital.
Why invest, even with a small budget?
1 – Inflation
Inflation is your worst enemy.
Did you know that Not investing means losing money ?
Indeed, the cost of living increases almost every year (inflation). If your money is sitting in a savings account at 0.1% yield, he loses purchasing power.
👉 Example :
- In 2024, inflation in Switzerland was approximately 2%.
- If your savings earn money 0,5% = you loses 1.5% of purchasing power.
There is only one solution Investing to obtain a yield above inflation and do grow your wealth on the long term.
2 – Compound interest (snowball effect)
Do you think that 100 CHF per month, Is that too little to invest? Think again! Thanks to the effect of compound interest, Even a small, regular amount can become a impressive sum on the long term.
📊 Simulation: CHF 100/month at 10% annual interest for 20 years
| Year | Capital invested | Accrued interest | Total |
|---|---|---|---|
| 1 | 1,200 CHF | 66 CHF | 1,266 CHF |
| 5 | 6,000 CHF | 1,900 CHF | CHF 7,900 |
| 10 | 12,000 CHF | 9,500 CHF | CHF 21,500 |
| 20 | CHF 24,000 | CHF 32,000 | 56,000 CHF |
👉 Final result :
- You invested : CHF 24,000 (100 CHF/month × 240 months).
- Interest has generated : CHF 32,000.
- Total after 20 years : 56,000 CHF (either more than double (of what you poured!).
🔍 Why this result?
This is the power of compound interest :
- Your 100 CHF/month do not only generate interest the first year, but also on the following years.
- The more time passes, the more Interest itself generates new interest.
And your wealth grows more and more.
👉 Conclusion : Even with a small budget, regular investing and high returns can add up to large sums!
The different types of financial investments
There is several ways to invest, But not all investments are created equal. Here are the main options :
| Investment type | Potential (gross) yield | Risk | minimal budget | Management time |
|---|---|---|---|---|
| ETF (growth) | ⭐⭐⭐⭐ (7-15%) | AVERAGE | 50 CHF/month | Weak |
| ETF (dividends) | ⭐⭐⭐ (5-10%) | AVERAGE | 50 CHF/month | Weak |
| Account 3a (100% liquidity) | ⭐⭐ (1%) | Weak | 50 CHF/month | Very weak |
| Account 3a (99% scholarship) | ⭐⭐⭐ ⭐ (6-9%) | AVERAGE | 50 CHF/month | Very weak |
| SCPI | ⭐⭐⭐ (3-8%) | AVERAGE | 1,000 CHF | Weak |
| REIT (real estate ETF) | ⭐⭐ (3-5%) | AVERAGE | 50 CHF/month | Weak |
| Traditional savings | ⭐ (0-2%) | Very weak | 1 CHF | None |
Every investment has advantages and disadvantages; I advise you to educate yourself before choosing an investment.
My criteria for a good investment (small budget)
For this article, I'm focusing on... simple, accessible and effective solutions, which respond to 4 criteria :
- Historically high yield (over the last 10 years).
- Diversification (to limit the risks).
- Management time: Less than 5 minutes/month (for beginners).
- Budget less than 200 CHF/month (accessible to all).
Investing in the stock market: the most flexible solution
1. Why the stock market?
I particularly like the stock market for 3 reasons:
- Accessible Opening a stock market account is simple and quick (e.g.: Neon, Interactive Brokers, Swissquote).
- Diversified With the AND F, you invest in hundreds (or even thousands) of actions at once.
- Flexible You can start with 50 CHF/month (or even less with the fractions of shares).
2. What is an ETF?
I have written several articles on ETFs on this site, I suggest you read them.
To summarize, a AND F is a fund that replicates a stock market index (e.g.: CAC 40, S&P 500).
- CAC 40 ETF = Invests and follows the 40 largest French companies.
- ETF VT = Invests and follows over 9,000 global stocks.
Therefore, ETFs allow:
- Automatic diversification (less risk).
- Reduced fees (compared to an actively managed fund).
- No need to follow the market (passive strategy).
3. The 2 main stock market strategies
| Strategy | Objective | Average yield (10 years) | Example of an ETF |
|---|---|---|---|
| Growth | Growing your capital | 7-17% | VOO (S&P 500), VT (World) |
| High dividends | To receive regular income | 5-10% | VYM, HDV |
🔹 Growth strategy: for explosive capital growth
Ideal for Those who want maximize their assets on the long term.
- Examples of returns (2015-2025) :
- ETF VOO (S&P 500) : +13%/year (with dividends reinvested).
- ETF VT (World) : +9,33%/year.
- Nasdaq : +17%/year (but more volatile).
The objective is to buy shares today that have strong growth potential.
🔹 Dividend strategy: for passive income
Ideal for Those who want to earn a regular income (e.g., to supplement a salary).
- Example :
- VHYL = approximately 3.5% in dividends per year + 3% in annual growth
The goal is to buy shares that regularly pay large dividends.
👉 Conclusion :
- Growth = Growing capital (better for Swiss taxation).
- Dividends = Regular income (but more heavily taxed in Switzerland).
4. Stock market commissions: the trap to avoid!
The fees reduce your yields on the long term.
The basic rule is quite simple: reduce all possible stock market fees. Therefore, choose:
- An ETF with the lowest possible TER
- A broker as cheap as possible
Investing in a 3a account: an advantageous Swiss option
1. What is a 3a account?
A 3a account is a savings account with tax advantages (tax reduction).
Note that it is possible to keep or invest the money from your 3a.
In 2026, the payment limit : CHF 7,056/year.
2. Why is this interesting?
✅ Tax reduction :
Depending on your income, You can save several hundred or thousands of CHF per year in taxes!
✅ Attractive yield :
It is possible to invest your 3a, for example, with Viac Global 100 (99% global shares):
In reality, the Average yield (2015-2025) = +6.9%/year.
For example, with 200 CHF/month invested for 10 years :
- Total payments CHF 24,000
- Stock market profits : +10,427 CHF
- Tax savings : +5,000 CHF
- Total : CHF 39,427 (either +15,427 CHF gain)
In truth, the 3a Global 100 is an example of a historically profitable, management-free, simple and accessible investment starting from 1 CHF.
Investing in real estate (without physically buying)
Perhaps you're being too cautious with the stock market; real estate is also an investment option.
Here are two simple and accessible real estate investments for those who want to invest with a small budget.
1. SCPI (Société Civile de Placement Immobilier)
Principle You buy some shares of a SCPI, which itself invests in real estate (offices, shops, housing). And returns a portion of the rent received to you.
- Yield history: 4-8% gross/year (very variable depending on the SCPI).
- minimal budget : 200 – 5,000 CHF (According to SCPI)
However, investing in a SCPI has three disadvantages:
- High fees: Entrance fees (0-13%) + management fees (10-12%/).
- Limited liquidity (difficult to resell quickly according to SCPI).
- Taxation is sometimes high : 13-47% (depending on the country and type of SCPI).
2. REIT (passive real estate) via ETF
Principle You buy some shares of real estate companies (like a SCPI, but on the stock market). And it distributes the rents to you.
- Yield :
- Growth : Low (REITs do not increase in value much).
- Dividends : 3-3.5%/year.
- Taxation : 15-35% (on dividends in Switzerland).
👉 My opinion on SCPIs vs. REIT ETFs:
- SCPI = Better performance, but less liquid And variable taxation according to SCPI.
- ETF REIT = More flexible, but less profitable (and fiscally variable as well).
📊 Comparison of net returns (2014-2024)
Here is a table to estimate the past net return of each investment (estimate).
| Investment | Gross yield | Taxation (Switzerland) | Costs | Estimated net return |
|---|---|---|---|---|
| S&P 500 ETF | +12% | -1% | -0,5% | +10,5% |
| ETF World (VT) | +8,5% | -1,5% | +0,5% | +6,5% |
| Account 3a Global 100 | +7% | +1,5% (tax reduction) | -0,5% | +8% |
| US Dividend ETF | +9% | -2% | -0,5% | +6,5% |
| SCPI | +6,5% | -2,5% | -1% | +3% |
| ETF REIT | +3,5% | -1,5% | -0,5% | +1,5% |
⚠️ Note :
- These figures are estimates based on the past.
- Taxes and fees vary depending on your situation.
My top 3 for a small investor
If you're starting out with a small budget And you reside in Switzerland, here are the 3 best investments in my opinion :
🥇 1. 3a Global 100 Account (Viac or Finpension)
✅ For what ?
- Tax reduction (sometimes several thousand CHF per year).
- High yield (+6-8%/year).
- Security (global diversification).
- Acceptable cost (0.40%)
🥈 2. S&P 500 ETF (e.g.: VOO)
✅ For what ?
- Historical yield (+10-13%/year).
- Diversification (500 large US companies).
- Very low fees (0,03%).
🥉 3. ETF Overall (e.g., VT)
✅ For what ?
- Good historical return (approximately 7% annualized)
- Global diversification
- Good dividends (approximately 1.51 TP3T per year)
- Low cost (0.07%)
However, a degree of volatility must be accepted with regard to these 3 investments.
Invest in fractions
Before concluding this article, I wanted to mention the possibility of investing in fractional shares.*.
In most stock market accounts, it is possible to invest in fractions (in part).
For example, if an ETF costs CHF 200 and you only have CHF 100 to invest, you can buy 50% of the ETF. Then, the growth and dividends will be halved (because in this case, you have bought half of the ETF).
This investment method avoids waiting until next month and missing out on potential returns.
I don't like investing in fractional shares, but I understand that those who have a small budget to invest per month do so, and that's a good thing.
FAQ: Investing on a small budget
Why invest, even with a small budget?
Invest, even with a small budget, is essential for protect your money against inflation. Indeed, if your savings remain in an account with no return, she loses purchasing power every year. Furthermore, thanks to the compound interest, even modest amounts, such as 100 CHF per month, can to become a significant sum on the long term. Therefore, Starting early allows you to benefit from exponential growth of your capital.
What are the best investments for a small budget?
Several options are available to you for investing with a small budget. First of all, THE ETFs (index funds) are ideal, because they allow a automatic diversification with reduced fees. Afterwards, A account 3a in Switzerland offer of tax advantages while allowing you to invest in stocks or bonds. Finally, THE SCPI or the ETF REIT can be a good alternative for investing in real estate without buying a property. In summary, These investments are accessible, flexible and adapted for beginners.
How to start investing with 100 CHF per month?
Start investing with 100 CHF per month It's simpler than you think. First of all, opens a stock market account at a low-cost broker like Interactive Brokers, Neon or Trade Republic. Afterwards, choose one Broad and diversified ETF, like the VT (worldwide) or the VOO (S&P 500). What's more, activate the option automatic investment to invest your 100 CHF each month without thinking about it. So, you will benefit from the effect of compound interest effortlessly.
What return can I expect with a small budget?
Yield depends on type of investment that you choose. For example, A World ETF like the VT historically reported approximately 7-9% per year on the long term. On the other hand, A account 3a with an aggressive strategy can achieve 6-8% per year, while making you save on taxes. However, It is important to note that Past performance is not a guarantee of future results. Nevertheless, with a coherent and patient strategy, you can hope for a Average annual yield of 5 to 10%.
What is an ETF and why is it suitable for small budgets?
A ETF (Exchange-Traded Fund) is a fund that replicates a stock market index, like the CAC 40 or the S&P 500. In other words, It allows you to invest in hundreds of actions at once, which reduces risks thanks to diversification. Moreover, ETFs have very low fees (often less than 0.1% per year), which makes them perfect for small budgets. Furthermore, you can buy some ETF fractions with some brokers, which allows you to start with only 50 CHF.
What are the advantages of a 3a account for investing?
A account 3a is a ideal solution for Swiss people who want to invest with tax advantages. On the one hand, THE payments are tax-deductible, which can make you save up to CHF 1,500 per year. On the other hand, You can choose from several investment strategies, like the stocks, bonds or cash. Furthermore, account 3a is secure and regulated, which makes it a reliable placement to prepare for your retirement or to buy real estate.
Can I invest in real estate with a small budget?
Answer : Yes, it is entirely possible to invest in real estate. without buying a property. Indeed, You can opt for SCPI (Real Estate Investment Trusts) or ETF REITs (Real Estate Investment Trusts). With a SCPI, you buy some shares of a real estate portfolio and receive rents in the form of dividends (approximately 5-8% gross per year). As for REIT ETFs, They allow you to invest in the stock market in real estate companies with reduced fees. On the other hand, beware of the taxation, which can be high on dividends in Switzerland.
How much can I earn by investing 100 CHF per month for 20 years?
Answer : If you invest 100 CHF per month with a average yield of 101.3T per year, Here's what you can get after 20 years :
- Capital invested : CHF 24,000 (100 CHF × 240 months).
- Accrued interest : ~32,000 CHF.
- Total : ~56,000 CHF.
In other words, your money will more than doubled thanks to compound interest. What's more, if you continue for 30 years, your capital could reach ~100,000 CHF ! Therefore, The earlier you start, the more time your money has to grow exponentially.
What risks should you be aware of before investing?
Answer : Investing always involves risks, even with a small budget. First of all, THE markets may fall in the short term, which means your portfolio may lose value. Afterwards, certain investments, such as individual actions, are more volatiles than ETFs. What's more, THE management fees and the taxation can reduce your yields. However, in diversifying your investments and by adopting a long-term strategy, you can limit these risks.
How can I avoid unnecessary expenses when making investments?
Answer : For maximize your yields, it is crucial to minimize costs. First of all, choose one low-cost broker as Interactive Brokers or Neon, which offer reduced transaction fees. Afterwards, favors the Low TER ETF (Annual Expense Rate), such as the VOO (0.03%) or the VT (0.07%). Finally, avoid the actively managed funds, which have higher costs. So, you will keep more money in your pocket and will maximize your earnings.
How to invest on a small budget?
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How to invest on a small budget?
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