Gold price up to 80 million VND/tael, interest rate under 2%/year, what to invest with little money?

During a period of economic volatility, if you deposit savings at an interest rate of 4-5%/year or even below 2%/year for a short term plus inflation, the real positive interest rate is very low.

Meanwhile, the gold market is constantly fluctuating. On December 26 alone, gold shops adjusted prices 20 times, at times reaching a peak of 79-80.3 million VND/tael (buy - sell).

Personal financial planning expert and wealth manager Ngo Thanh Huan will give some recommendations for young investors - those with stable income, unmarried and few dependents - in the current market situation.

Don't touch gold in 2024

Mr. Huan recommends that young people with stable income and no dependents at the present time should not touch gold in 2024.

The reason is that gold prices have been in the high zone since the end of December. In 2024, with the US Federal Reserve (Fed) interest rate trend decreasing, gold will continue to stay in the high zone.

In addition, when the economy stabilizes and begins to grow again, gold prices will decrease and there is no story of sideways movement. If investors accept that level of risk, the room to make a profit from gold will not exceed 10%.

Vàng lên 80 triệu đồng/lượng, lãi suất dưới 2%/năm, ít tiền thì đầu tư gì? - 1 — Experts believe that the room for profit from gold will not exceed 10% in 2024 (Illustration: Thanh Dong).

"In 2024, when signs of economic recovery are established, gold prices will reverse, so the risk of investing at the current price range is very high," Mr. Huan assessed.

If the price of gold decreases by more than 5% compared to the current time, investors can consider buying to accumulate, but should not exceed 20% of the investment portfolio. However, investors should not buy gold at the present time. If they do invest, they should consider the time after the God of Wealth day (10/1 lunar calendar). At that time, the price of gold will cool down, and buyers will also have less risk.

Mr. Huan also noted that when investors hold gold, they should pay more attention to the socio-economic situation and the stock market. When the economy stabilizes, the price of gold will cool down, at which point investors should "sell all" their gold, or keep a small amount.

The expert gave an example of the period 2013-2016 when the economy was stable, the price of gold was maintained at a stable level for 3-4 consecutive years, without fluctuations.

Taking risks to seek growth opportunities?

The expert assessed that although bank savings are a safe investment channel, they are not an effective profit-making channel in 2024 and the first half of 2025.

From now until the beginning of the first quarter of 2024, when the economy has not shown clear signs of recovery and the market is still volatile, investors can temporarily choose to deposit short-term savings with interest rates of 4-5%/year.

However, from an investment perspective, he recommends that young people - without families or dependents - should expand their risk tolerance to seek growth opportunities as the economy begins to enter the recovery phase.

"In fact, this group of people is under pressure of low investment risk costs due to low capital. However, risk goes hand in hand with profit, so accepting risks in growth asset classes such as stocks and real estate - which are now cheaply priced - should also be considered," Mr. Huan assessed.

Vàng lên 80 triệu đồng/lượng, lãi suất dưới 2%/năm, ít tiền thì đầu tư gì? - 2 — Stocks are still one of the attractive investment channels next year (Illustration: Hai Long).

According to him, with the current economic situation, stocks in 2024 are also an attractive investment channel. However, investors should not buy all at once but should divide into several installments, spread out from the beginning of the year until June 2024.

If the world situation worsens, investors should change their status, respond promptly, and not "put all their eggs in one basket".

In case the world situation moves towards a cooling of the conflict and the US makes a soft landing, investors should consider increasing the proportion of stocks. Investors keep money in deposit accounts to be able to flexibly adjust between investment channels.

Regarding investment ratio, Mr. Huan said that young people can spend 70% of their investment money on the stock market, the remaining 30% should be set aside as a reserve fund in the deposit channel.

Accordingly, the reserve fund should cover 3-6 months of essential expenses and should be deposited in a short-term bank deposit account, ensuring liquidity when needed and also ensuring asset growth.

In the future, when the accumulated amount increases or when there are changes in the financial situation, this group of investors can learn more about investment channels such as real estate, corporate bonds and other types of assets.

iMoney is a product line specializing in articles on investment advice and consumer advice, published every Wednesday on Dan Tri newspaper.

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