Where to Invest: Some options to consider and practical tips

At a glance:

• There is no such thing as the "best investment”: the right choice depends on each person’s risk profile, time horizon and objectives.

• The options range from fixed-term deposits and savings certificates, which offer capital protection, to shares and cryptocurrencies, which are high-risk investments.

• In general, the higher the potential return, the higher the risk. Therefore, no single asset class is suitable for all investors.

• If you would prefer not to make decisions on your own, you can opt for portfolio management and delegate decisions to a specialist team.

With so many options available, all investors have one question in common: where should I invest my money? Which solution best balances profitability and security with risk and return? There is no one right answer. The choice depends on each individual profile, financial objectives, and previous experience. However, this uncertainty should not be an excuse for inaction.

We have outlined the main options below in ascending order of risk, from capital-guaranteed instruments to those with the highest volatility. This will help you to assess where you fit in based on your profile.

Explore the available solutions and make informed decisions that best match your priorities.

Where to invest your money: 10 options to consider

From cryptoassets to investment funds, including stocks and bonds, there are a variety of options for investors to consider.

Term deposits

Although we are used to thinking of term deposits as a form of savings rather than an investment, the truth is that term deposit rates can be attractive, and they are the lowest-risk option available.

The main distinguishing feature is the capital protection offered: in Portugal, the Deposit Guarantee Fund covers deposits up to €100,000 per depositor and per institution. On the other hand, returns tend to be more modest. Although the capital can generally be withdrawn early, doing so may result in a total or partial loss of interest. However, some term deposits do not allow early withdrawal, meaning the capital must remain invested until the end of the term.

As with all investments, in order to choose the solution that best suits your investment objectives, you must consider the characteristics of the deposit in which you wish to invest. Read our article to find out how to choose the best fixed-term deposit.

Perfect for: investors who prioritise predictability and capital protection over the short to medium term.

Savings certificates and treasury certificates

Savings and treasury certificates are government debt securities aimed at private individuals and purchased directly from the state. They offer guaranteed capital and have low minimum subscription amounts, making them accessible to beginners.

The terms and conditions, including the interest rate, term, and early redemption penalties, are set by law and may change. Therefore, it is advisable to check the current terms at the time of subscription. In return for this security, they impose minimum holding periods and penalties in the event of early redemption.

Perfect for: investors who are looking for guaranteed capital and are happy to tie their investment up for a few years.

Pension Savings Plans (PPRs)

Pension Savings Plans (PPRs) are long-term savings products designed to supplement retirement income. They offer tax relief on subscriptions and reduced taxation in cases provided for by law.

PPRs can take the form of funds, in which case the risk varies according to the composition of the portfolio. Alternatively, there are PPRs with guaranteed capital, which are backed by a guarantee provided by an insurer. Provided the applicable conditions are met, it is possible to transfer a PPR between institutions.

Key point: Although a PPR can be cashed in at any time, the returns may be subject to a higher tax rate than the 8% applicable when the legal conditions are met, except in situations provided for by law. If the relevant tax deduction has been claimed, tax relief may have to be repaid.

Perfect for: investors who are saving for the long term and who want to make the most of the associated tax framework.

Bonds

Bonds, also known as debt securities, are a type of debt issued by governments, companies or other entities to raise capital in financial markets. Investing in bonds involves lending money to an entity in exchange for periodic interest payments and the return of the principal amount when the bond matures. They are considered a fixed income investment because they provide a regular payment of interest at a predetermined rate. However, the truth is that bonds can have either fixed or variable interest rates. They can also be zero-coupon bonds or offer other forms of return. Therefore, the terms of return depend on the characteristics of each issue.

One of the most important things to consider is the credit risk of the issuer. Rating agencies such as Moody’s and Standard & Poor’s regularly assign credit ratings to bond issuers to help investors assess this risk. In addition to credit risk, investing in bonds can also involve interest rate risk, currency risk and other risks. As with any other type of investment, you can balance your portfolio by diversifying your investment across a number of bonds from different issuers and with different maturities. To deal with this uncertainty, it is advisable to seek professional advice.

In addition to credit risk, one aspect that is often misunderstood is that when market interest rates increase, the value of previously issued bonds tends to fall. Anyone who holds the bond until it matures will receive the face value. However, anyone who needs to sell before then may have to do so at a price below the purchase price. The reverse is also true: when interest rates fall, the value of existing bonds tends to increase. Anyone who holds the bond until it matures will receive the face value. However, anyone who needs to sell the bond may sell it for more than the purchase price.

Find all the information you need about bonds here.

Perfect for: investors who want predictable returns with lower volatility for the medium and long term.

Unit-Linked

Unit-Linked products are investment solutions that take the form of fund-linked insurance policies. Although the capital is invested in professionally managed portfolios, the insurance policy provides them with their own specific tax and succession framework.

These are complex financial products: the investor does not hold the underlying assets directly, but rather holds rights under the insurance contract. The policyholder bears the investment risk. The terms and conditions, fees and risks are set out in the pre-contractual documentation.

Perfect for: investors looking for long-term professional management and who value the specific tax and succession framework that it offers.

Investment funds

Investment funds are another option for those looking to invest money. They cover a wide range of assets, such as shares, bonds or commodities. Fund managers make decisions according to the fund’s objectives and strategies.

This type of investment allows you to benefit from the expertise of professional managers, making it even more attractive to the less experienced investors. In addition, most investment funds have low minimum subscriptions, which allows for greater diversification.

Funds generally offer a high degree of liquidity as they usually allow units to be subscribed for and redeemed. However, certain funds may impose time limits, conditions or costs on these transactions depending on their characteristics.

Read our beginner’s guide to find out how to invest in funds.

Perfect for: investors looking for simplified diversification and professional management with less daily hassle.

Exchange Traded Funds (ETFs)

ETFs (Exchange Traded Funds) are investment vehicles that provide an efficient and diversified way to participate in the financial markets. With ETFs, investors can easily buy and sell their positions through exposure to sectors, indices, geographies or themes. For example, an ETF that tracks an index of technology stocks can offer significant growth potential and allow investors to gain exposure to several technology companies with a single investment, which would not be possible if they bought shares in just one company. If the investor wanted to have the same exposure in their portfolio as they have in the ETF, they would have to buy shares in several companies, which would require more analysis, monitoring, and investment.

The same is true, for example, if you buy an ETF with the intention of being exposed to a particular geography. By buying an ETF, investors can invest in different international markets and specific geographical locations, allowing them to diversify across borders.

You can find a comprehensive guide to investing in ETFs here.

Perfect for: investors looking for practical diversification and a broad exposure to specific markets or themes.

Shares

If you prefer to pick and choose the companies in which to invest your money, then a direct investment in shares is a good place to start.

Investing in shares can be profitable over the long term, but it also involves greater risk. Direct investors buy and sell shares at their own risk. The stock market is volatile, and prices can rise and fall rapidly as a result of financial events, political upheaval and other unforeseen factors. To deal with this uncertainty, it is advisable to seek professional advice and to monitor your investments.

Investors can use a number of strategies to manage risk. They can invest for the long term by buying shares in solid companies and holding them for years or decades, and they can diversify their portfolios to minimise risk and protect their invested capital.

Perfect for: investors who have a long-term vision, are willing to take risks, and want to share in the company’s growth.

Commodities

Commodities such as gold, oil, natural gas and agricultural products are physical assets and are widely consumed in various industries and have a global demand. The price is determined by a number of factors, including supply and demand, geopolitics, climate and economic cycles.

They may have a low correlation with shares and bonds precisely because they involve distinct risk factors, making them a useful addition to a diversified portfolio. However, it is important not to confuse low correlation with low volatility. Commodities are among the most volatile asset classes – on 20 April 2020, WTI crude oil futures contracts closed at -$37.63 per barrel, marking the first time in history that the price had fallen into negative territory.

How to invest in them: there are various ways to invest in commodities. In the case of gold, you can invest directly in this metal or via funds, exchange-traded funds (ETFs), exchange-traded commodities (ETCs), and derivatives. For other commodities, such as oil, natural gas and agricultural products, exposure is usually gained through funds, ETFs, ETCs or derivatives, such as futures contracts.

Derivatives are complex financial instruments that may involve leverage, which can significantly increase the risk of loss. Consequently, MiFID imposes specific rules on the trading of derivatives by retail investors.

Perfect for: investors looking to diversify in the face of macroeconomic risks, who can also withstand sharp fluctuations.

Cryptoassets

Cryptoassets are one of the most polarising investment options available today. These digital assets are based on distributed ledger technology and are independent of governments and central banks.

There are three characteristics worth noting. Firstly, volatility is much higher than that of shares. Secondly, there is no intrinsic value linked to a company’s results or income streams, so valuation is primarily based on demand. Furthermore, the European regulatory framework, as set out in the MiCA Regulation, is recent.

Exposure to these cryptoassets need not be direct. There are already solutions such as Crypto Fx or ETPs that are exposed to cryptoassets, allowing for more controlled and accessible exposure compared to buying cryptoassets directly.

CryptoFX are complex financial instruments that may involve leverage, which can significantly increase the risk of loss. Marketing them to retail investors is therefore subject to specific MiFID rules.

Perfect for: investors with a high-risk tolerance who understand the nature of the asset and are only investing amounts whose total loss will not jeopardise their objectives.

But what if you’d rather not make the decision yourself?

The above options assume that the investor makes the choice. However, there is an alternative: you can delegate that decision.

In portfolio management, an investment team selects and monitors assets on the client’s behalf within agreed parameters regarding objectives, risk level, and eligible instruments. The portfolio is regularly reviewed and adjusted in line with market conditions, without requiring the investor’s approval for each transaction.

Managers select different asset classes and analyse companies, sectors and geographies so investors don’t have to. The investment portfolio is subject to ongoing analysis so that adjustments can be made on a regular basis, for example, in line with the macroeconomic situation. All the investor has to do is subscribe to the service and leave the decisions to the experts.

It is a regulated service provided by entities authorised by the CMVM, and involves certain costs, notably management fees, which should be weighed against the expected added value.

Perfect for: investors who prefer to leave the management of their assets in the hands of specialists, with ongoing monitoring and tailored solutions.

Where to invest your money: a comparison of options

None of these options is suitable for all investors. As a general rule, the higher the potential return, the higher the risk. Your choice should therefore be based on your investment objectives, time horizon, and ability to withstand losses. Before subscribing to any product, consult the relevant pre-contractual documentation. This may include the Key Information Document, the prospectus, or the standardised information sheet.

Precautions to be taken when investing money

Successful investing goes beyond choosing products or markets: it requires strategy, vision and rigorous analysis. Find out about the most important precautions investors should take:

1. Assess risk realistically

Before you invest, you need to understand your risk profile. Do you have a high tolerance for volatility or do you prefer stability? Higher-risk investments can offer high returns, but they are not for everyone. Understand the possible scenarios and avoid putting essential resources at risk.

It is important to realise that this assessment does not depend solely on you. When you purchase an investment product, the financial intermediary is obliged to gather information about your investment knowledge and experience, financial situation and investment objectives. They must also verify that the product is suitable for you. This is a legal safeguard, not a mere formality. The answers you provide will determine what can be offered to you.

2. Diversification is key

Spreading capital across different asset classes, such as equities or bonds, minimises the impact of localised losses. Diversification is one of the foundations of a safer and more balanced investment.

3. Choosing reliable financial partners

Successful investments depend on partners who combine security, transparency and competence. Always check that the organisation is authorised and registered with both Banco de Portugal and the CMVM, and assess the clarity of the information on costs and risks. At Banco Carregosa, we offer personalised management based on solid experience and reputation. With access to a sophisticated range of solutions and a dedicated team, we are the ideal ally to help you achieve your financial goals.

4. Avoid emotional decisions

Market volatility can cause impulsive reactions, such as fear or euphoria, which can put results at risk. Be disciplined, stick to your strategy and seek expert advice before you make any decisions.

5. Monitoring and readjusting the strategy

Markets evolve, as do your objectives. Review your portfolio regularly and adapt it to changes in your personal, economic or time horizon. This type of monitoring ensures that your portfolio remains in line with your long-term objectives.

Banco Carregosa, investing since 1833

These are just some of the options for investing your money, but there are other alternatives to consider in order to make the most of your assets. Contact the team of experts at Banco Carregosa and benefit from our experience, consolidated since 1833, to make sound financial decisions aligned with your objectives.

About Banco Carregosa

Banco Carregosa can trace its origins back to Casa Carregosa, a currency exchange house founded in 1833 in Porto, making it the oldest financial institution still in operation on the Iberian Peninsula. It operates as a bank specialising in private banking and wealth management. It is authorised and registered with both Banco de Portugal (registration no. 0235) and the CMVM (registration no. 0169).

Recent accolades: in March 2026, Banco Carregosa was named the Best Pure-Play / Boutique Private Bank in Portugal by Euromoney for the second consecutive year.

Where to invest money: FAQs

Where can I invest money in Portugal with a low risk?

The lowest-risk options are fixed-term deposits and savings and treasury certificates. The former are covered by the Deposit Guarantee Fund up to €100,000, while the latter are government debt with guaranteed principal. However, in return for this security, they offer a more modest return and impose withdrawal restrictions.

What is the best investment?

There is no such thing as a ‘best’ investment. The most suitable option depends on an individual’s objectives, time horizon, risk tolerance, and need for liquidity. One product may be suitable for one investor and not another.

How much money do you need to start investing?

There is no set minimum amount. Some investment products, such as savings certificates, funds and ETFs, accept small amounts. What’s more important than the initial amount is consistency and suitability to your profile.

Should I invest all my money in a single option?

As a general rule, no. Spreading your capital across different asset classes reduces the impact of any losses. While diversification reduces specific risk, it does not eliminate market risk.

Disclaimer: This article has been prepared by Banco Carregosa for information and educational purposes only. Under no circumstances does it constitute an investment proposal, recommendation to purchase, or personalised financial advice. The asset classes mentioned are provided for illustrative purposes only, and their suitability depends on each investor’s profile, objectives, and time horizon.

Investing in financial instruments carries risks, including the possibility of losing all or part of the invested capital. Past performance is no guarantee of future returns. Some of the instruments referred to – namely, derivatives, CryptoFX and unit-linked products – are complex financial products. The marketing of these products to non-professional investors is subject to specific MiFID rules.

Before making any decisions, consult the relevant pre-contractual documentation applicable to each product. This includes the Key Information Document (KID), the prospectus, and the standardised information sheet, as applicable. Purchasing these products also requires the financial intermediary to carry out a suitability assessment, in order to determine whether the investment is appropriate for you. You should consult your account manager or financial advisor before making any financial decisions to assess whether they are suitable for your risk profile and financial objectives.