Rondablog

12. 4. 2024
4 minutes of reading

Are you postponing investing? You are unnecessarily losing your savings.

Investing has lately become an increasingly discussed topic, and many experts speak about the importance of investing. Why have similar topics started to emerge? First of all, it's mainly due to the prospect of a state pension is shrouded in uncertainty, and every year the estimated amount of retirement pensions decreases. At the same time, we have experienced a period of record inflation over the last two years, which has devalued the savings of those who have not invested. Despite the constant talk about the need to invest, most Czechs are on the metaphorical scale, which, due to fear, leans towards conservative savings accounts with insufficient appreciation.

Are you postponing investing? You are unnecessarily losing your savings. Reading Time: 4 minutes

Fear of investing still deters a majority of the population

Findings from a survey carried out by Perfect Crowd agency in February 2024 revealed clear conclusions. Nearly 30% out of 1072 respondents stated that fear of losing money is what deters them from investing. Can these fears be confronted at all when every investment is associated with a certain level of a risk?

To get started, it’s beneficial to find out basic information about different investment products. When you are more certain about what you are investing in and how different investment platforms work, fear will decrease and confidence will increase. At the same time, you should invest an amount that you won’t need ideally in at least 3 years. The longer the term of your investment is, the more you reduce the risk of loss.

Another significant fear among Czechs is the fear of fraud, and it’s no surprise. Historical events haven’t exactly fostered trust among older investors. Primarily, their investment habits are understandably lacking, considering that before the Velvet Revolution, their only option was saving in a passbook. Moreover, after the revolution, during the period of coupon privatization, ordinary people’s confidence in investing certainly didn’t deepen, as many businessmen then took advantage of it for their own profits. However, it’s important to remember that the bailouts of the 1990s are in the past, and trusted platforms are entering the market that will truly appreciate your money.

We debunk three major investment myths that discourage most investors

You don’t need millions

Only few people can afford to invest a large sum of money right away. Most investors begin by testing their chosen investment platform with a small amount first and then gradually start setting aside more savings each month. Indeed, investing is largely advisable starting with small amounts. Over time, you will build your own investment portfolio that will snowball into additional returns.

You don’t have to be an expert

Even experts had to start somewhere, and only became experts after years of study and practice. The longer you spend in the world of investing, the more experience you will gain, and achieving higher returns will become more natural. As already mentioned, you can start with smaller amounts to see how the investment performs. Once you are more confident in your understanding, it will be easier to invest larger amounts that align with your investment goals precisely.

One-off and short-term investing is not the way to go

Every beginner tends to lean towards short-term and quick gains due to the fear of loss. However, many investors have incurred significant losses this way. Therefore, it’s essential to invest for the long term to allow your money to appreciate in value. A better strategy is to invest reasonable amounts consistently, utilizing multiple investment instruments. This approach helps diversify your portfolio and mitigate the risk of loss.

Fear is even more prevalent when dealing with stocks, cryptocurrencies, and similar volatile investment products compared to other investments. In such cases, it becomes even more crucial to invest for the long term, aiming for at least 10 years, as most stocks tend to rise in the long term despite significant short-term fluctuations. It’s common for stock to have year-on-year declines. Such periods should be viewed as opportunities to increase the amount invested at a better price rather than selling the stock at a lower than purchasing price.

Minimal risk with solid appreciation?

Investing with RONDA INVEST could be an excellent option for your initial investment. You’ll be investing in loans secured by real estate with loan-to-value ratios typically below 70%. Each loan we fund undergoes a thorough assessment process, with our risk department carefully reviewing each application, the quality of the collateral, and the profitability of the project that is being financed.

If investing in real estate seems financially unattainable for you at the moment but you still want to preserve its real value, consider alternative investments with Ronda. You can begin investing with as little as CZK1,000 or EUR 50, and as you start seeing regular yields each month, you can gradually increase your invested amount. We ensure that every investor receives their original investment amount as well as monthly yields on time. There are no hidden surprises or fees in this regard.

Whether you’re a conservative or dynamic investor, the key is to start investing. If you haven’t taken the plunge yet and are still hesitant, consider how you spend your spare time. How you could incorporate learning basic information about various types of investments. Then, select a platform to start with, and invest your initial funds. As you witness your investments appreciate over time, your confidence will grow naturally, and you’ll be inclined to expand your investment portfolio further.

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Kateřina Hájková
Author:
Eliška Horáková
Online Marketing Specialist

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5 advantages of financing with RONDA INVEST

Secured investments

Family houses
Yield p.a.
9 %

Yield represents the monetary amount you gain from invested capital. It indicates the difference between the final value of the investment and the capital used.

p.a. stands for per annum, meaning the yield calculated on an annual basis.

Example:

You invest 10,000 CZK with a yield of 10% p.a. The yields will be paid to you proportionally every month, and in one year, you will receive a total of 1,000 CZK in yields.

Maturity
35 months

Maturity indicates the binding date by which the loan will be repaid and your investment comes to an end.

After this date, we will transfer to your account, along with the final yield, the original invested amount as well.

This investment has a maturity 30. 4. 2027.

Min. investment
100 000 Kč

Minimum investment specifies the lowest possible amount that can be invested in the project.

LTV
57,77 %

LTV = Loan to Value
(in translation, “loan to value”)

LTV indicates the ratio of the property value to the loan value. The lower the LTV, the higher the level of security.

Calculation of LTV = loan amount / estimated market value × 100

(3rd phase)
Family houses
Prague - Kolovraty
Lands
Yield p.a.
8,7 %

Yield represents the monetary amount you gain from invested capital. It indicates the difference between the final value of the investment and the capital used.

p.a. stands for per annum, meaning the yield calculated on an annual basis.

Example:

You invest 10,000 CZK with a yield of 10% p.a. The yields will be paid to you proportionally every month, and in one year, you will receive a total of 1,000 CZK in yields.

Maturity
24 months

Maturity indicates the binding date by which the loan will be repaid and your investment comes to an end.

After this date, we will transfer to your account, along with the final yield, the original invested amount as well.

This investment has a maturity 31. 5. 2026.

Min. investment
1 000 Kč

Minimum investment specifies the lowest possible amount that can be invested in the project.

LTV
48,65 %

LTV = Loan to Value
(in translation, “loan to value”)

LTV indicates the ratio of the property value to the loan value. The lower the LTV, the higher the level of security.

Calculation of LTV = loan amount / estimated market value × 100

Residential building
Yield p.a.
8,68 %

Yield represents the monetary amount you gain from invested capital. It indicates the difference between the final value of the investment and the capital used.

p.a. stands for per annum, meaning the yield calculated on an annual basis.

Example:

You invest 10,000 CZK with a yield of 10% p.a. The yields will be paid to you proportionally every month, and in one year, you will receive a total of 1,000 CZK in yields.

Maturity
16 months

Maturity indicates the binding date by which the loan will be repaid and your investment comes to an end.

After this date, we will transfer to your account, along with the final yield, the original invested amount as well.

This investment has a maturity 30. 9. 2025.

Min. investment
10 000 Kč

Minimum investment specifies the lowest possible amount that can be invested in the project.

LTV
24,10 %

LTV = Loan to Value
(in translation, “loan to value”)

LTV indicates the ratio of the property value to the loan value. The lower the LTV, the higher the level of security.

Calculation of LTV = loan amount / estimated market value × 100

(2nd phase)
Residential building
Jablonec nad Nisou
CALCULATOR
HOW MUCH DO YOU WANT TO INVEST?
CZK
FOR HOW LONG?
24 months
YIELD
9 % p.a.
EXPECTED YIELD
CZK

The calculator calculation is based on a model example of a one-time repayment loan investment (full principal repayment at the end of the loan term). Returns are paid to investors monthly, and the calculator does not consider reinvestment. The actual performance of the investment may differ from the model example. It represents gross yield, subject to taxation. At RONDA INVEST, there are no entry fees or regular fees.