What to invest in with little money in Colombia depends on your goal, your time frame and how much you could afford to lose; the common options are CDTs, savings accounts, funds, shares and stakes in private projects.
None of them fits every purpose. Each has its own term, its own way of getting your money back and its own way of producing a result. Here's how they work, so you can decide at your own pace.
Before you decide what to invest in with little money
It helps to get these four things in order first. With a small amount, a surprise expense or an expensive debt weighs more than almost any result.
- 1
Build your emergency fund
This is money you can use the same day if something happens. It's usually worked out as several months of basic expenses. If you don't have one yet, that's one of the signs for knowing whether you're ready to invest.
- 2
Look at your debts
Check how much interest each one charges. A credit card usually costs more than a common option can earn, so every peso you pay off already saves you that difference.
- 3
Set your time frame
Ask yourself when you'll need the money: in months, in a couple of years or in more than five. The time frame rules out options before anything else does.
- 4
Decide how much you could lose
Think about how far that money could fall without changing your daily life. If the answer is not at all, that also points the decision somewhere.
The most common options, explained
These are general concepts, and they aren't listed from best to worst: each does a different job. What separates them first is liquidity, meaning how quickly you can turn them into spendable money.
CDT
A certificado de depósito a término, Colombia's term deposit: you hand money to a financial institution for a set term at a rate agreed at the start. As a rule it can't be cancelled before it matures. See how to compare a CDT.
Savings account
The money stays available for when you need it. The rate is usually low, the institution can change it and some accounts charge a maintenance fee.
Funds
A collective investment fund pools money from many people and invests it in a group of assets. You get units whose value changes every day. Some let you withdraw whenever you want and others ask for a minimum time.
Shares
A share is a piece of a company, bought and sold through an authorized broker. Its price changes every day, and the result depends on the company and on the market.
Stakes in private projects
A piece of a specific business, such as a building or a solar plant, set out in a private contract. The result depends on how that project performs. You can see how projects are presented.
| Option | Term | Liquidity | How the result varies |
|---|---|---|---|
| CDT | Set when you open it, from months to years | Low until it matures | Rate agreed at the start; depends on the institution being able to pay |
| Savings account | No term | High | The rate can change; fees can reduce what's left |
| Funds | Set by its rules | High to medium | The unit value rises or falls with its assets |
| Shares | No term | Depends on how much the share trades | The price rises or falls; some companies pay dividends |
| Stakes in private projects | Usually several years | Low | Depends on the project's income and costs |
Conditions change with each institution, fund or project. Read them before you decide.
How to invest 1 million pesos: an example
A made-up example: Camila has 1,000,000 pesos, no expensive debts, and her emergency fund is 400,000 pesos short. This isn't a recommendation, just one way to think about money by goal and time frame.
| What it's for | When she needs it | Pesos | What matters most to her |
|---|---|---|---|
| Topping up the emergency fund | At any time | 400,000 | Being able to take it out the same day |
| A trip | In 8 months | 200,000 | Having all of it by that date |
| A distant goal | In more than 5 years | 400,000 | Giving it time and accepting that its value will move |
| Total | 1,000,000 |
Camila splits the money by goal before looking at any option.
| If the value changed each year by | 400,000 pesos after 5 years |
|---|---|
| +8% | 587,731 |
| +3% | 463,710 |
| −2% | 361,568 |
Made-up percentages that don't match any specific option. They show how far apart results can end up over a long period.
Each portion asks something different of an option. For the emergency fund, Camila wants availability. For the trip, a term that ends before the date. For the distant goal, she can consider options whose value moves, because she has years to wait.
The table also shows why time matters so much: each year builds on the result of the year before, which is the idea behind compound interest. It works the same way going up and going down.
What weighs most on a small amount
A cost you'd barely notice on a large amount can eat a good share of the result on a small one.
Fees and commissions
A made-up charge of 5,000 pesos a month comes to 60,000 pesos a year: 15% of 400,000 pesos. Before you look at the rate, look at what you'll be charged.
The 4x1000
The financial transactions levy is 4 pesos for every 1,000 you withdraw, so taking out 1,000,000 pesos costs 4,000. Some accounts may be exempt up to a limit.
Minimum amounts
Every option has its own. If you'd have to dip into your emergency fund to reach it, it's worth waiting. Here's how much money you need for real estate.
Taxes
Interest and other gains can be subject to withholding and be part of your income tax return. Always compare what you'd keep after taxes.
Splitting too much
Diversification lowers the weight of any single decision. With little money, each option's minimums and charges can mean that dividing it into many parts doesn't pay off.
The risks of investing with little money
Every decision about your money carries risks, and they differ from one option to another.
Getting back less than you put in
With options whose value moves, you can end up with less than you started with, or even lose it all in a business that fails.
Inflation
If prices rise faster than your result, that money buys less even though the balance has grown.
Not being able to take the money out
A term or a lack of buyers can cut off access just when you need it. That's why the emergency fund stays separate.
Who has to deliver
Every option depends on someone: an institution, a company or a project team. If that party fails, your result changes.
Deciding in a hurry
Pressure from a friend, a trend or an offer that's about to end tends to lead to decisions that don't fit your time frame.
Getting started at your own pace
You don't have to make the whole decision today. These steps help you move forward with what you have.
- 1
See where your finances stand
The finance diagnostic helps you see your starting point before you choose.
- 2
Write down the goal, amount and date
One sentence per goal is enough. If a goal has no date, it's hard to know which option suits it.
- 3
Compare only what fits that time frame
First rule out whatever won't let you take the money out in time. Then compare costs, conditions and risks.
- 4
Read the full conditions
If a stake in a project interests you, go through how to evaluate it before you decide.
Related questions
Projects to explore
See what a stake looks like in a real project, with its term, its information and its risks. Results depend on how each project performs.
Project in Construction
Project in Structuring
Project in Operation
Project in Structuring
Project in Structuring
Project in ExplorationCasa Lago
La Pintada, Colombia
This project is currently under study. We will notify you when it becomes available for participation.
Keep going
- How to compare a CDTThe questions that show what you'd actually keep.
- Finance diagnosticCheck your starting point before you decide.
- How to start investing in real estateThe first steps if real estate interests you.
Educational content. It is not financial, legal or tax advice, nor a public offering of securities. The figures in the examples are made up. Every investment carries risk and its results may vary.