How can small investors with 100,000 yuan invest wisely to effectively accumulate wealth?

For many people, investing always seems like a distant thing. But in today’s economic environment, this mindset can lead to being gradually eroded by inflation. The prices of eggs, lunchboxes, and rent have never returned to previous levels. When mortgage rates stabilize at 2.2%, every dollar’s purchasing power is being diluted. For the average small investor, saving a million takes years of effort, but reaching 100,000 is an achievable goal with dedication. Don’t underestimate the power of this 100,000 investment — it’s not just savings, but your weapon against inflation. The key isn’t how much principal you have, but mastering the right mindset, finding promising projects, and giving enough time for compound interest to work.

Building a Foundation: Start with Budgeting to Develop Your Thinking

Before investing 100,000, the most important first step is to develop your investment mindset. The basic rule of investing is simple: only use spare money. This capital shouldn’t affect your daily life, because no investment always goes straight up — there will be ups and downs. If you need money urgently and the market drops, being forced to sell at a loss will offset your gains.

Why is budgeting important? Because it helps you treat yourself like a company — clearly understand your income and expenses, and free up stable cash flow. This is the real confidence behind investing. Only by knowing how much money you can allocate can you ensure your investment plan’s stability.

Setting Investment Goals: Where Should the 100,000 Go?

With capital and mindset in place, ask yourself: what do I want to achieve with this 100,000 investment?

For office workers, the best approach is to regularly invest in financial products through dollar-cost averaging. This way, you don’t need to constantly monitor price fluctuations and won’t be distracted from your main job.

For retirees, the goal is to generate continuous cash flow from assets to cover living expenses.

For young professionals, the key is “finding income for expenses.” For example, if you pay fixed monthly costs like phone bills and utilities, consider monthly dividend funds or high-yield assets. Currently, many funds pay dividends of 7–8%, meaning investing 100,000 could yield 7,000–8,000 per year, or about 600–700 per month for communication expenses.

If your short-term goals include buying a phone or traveling abroad, requiring 30,000–40,000 yuan, then you need a 10%–40% return on your principal. This isn’t achievable through just stock savings; it requires more active trading strategies.

Investment Strategies for Different Groups with 100,000

Depending on your job type and available time, your investment approach should differ.

Stable-job small investors (ample time, need mindset and projects)

Your advantage is steady cash flow but slower principal accumulation. The best approach is to leverage the power of compound interest over time, considering dividend funds or high-yield ETFs. These investments can generate stable cash flow similar to a salary, providing a sense of achievement. With enough time, dividends can even surpass your salary, effectively earning you a monthly pension. While this method doesn’t accelerate compound growth and asset increase is slower, it offers quick and sustainable returns, making it more suitable for conservative small investors.

High-income groups (have mindset, need time and projects)

For example, doctors and engineers have high salaries but busy schedules, making it hard to monitor markets. Suitable investments include index ETFs like SPY (tracking the top 500 US companies) or 0050 (tracking Taiwan’s top 50 companies). These index ETFs automatically “weed out the weak and keep the strong,” and given enough time, their returns are impressive. The S&P 500 has averaged 8–10% annual returns over the past 100 years, far exceeding 5% USD savings. Investing 100 yuan at 10% annually for 10 years yields 236 yuan; at 5%, only 155 yuan — a significant difference.

However, be aware of market risks. The dot-com bubble in 2000, the 2008 financial crisis, COVID-19 in 2020, and global inflation in 2022 all caused sharp declines, though markets recovered and even hit new highs afterward. If you need to cash out during downturns, you’ll have to accept losses. Long-term investing suits those with high income and strong risk tolerance.

Time-rich active investors (have mindset and projects, pursue high turnover)

Students or those in sales roles often have time to research market trends and volatility, aiming to quickly accumulate wealth through rapid turnover. For example, when the US interest rate cycle peaks and begins to turn downward, the dollar supply increases, making shorting the dollar highly profitable. A falling dollar also boosts cryptocurrencies, providing opportunities for good returns. Additionally, the stock market often has “hot themes” that attract media attention, such as AI concepts, which can lead to significant gains.

Future Investment Targets to Watch

After establishing your strategy, consider which assets are worth including in your 100,000 portfolio over the next decade.

Defensive assets: Gold and precious metals

Gold has no dividend yield; all returns come from price appreciation. Gold effectively hedges against inflation and currency depreciation over the long term. Its safe-haven qualities become especially evident during economic instability or market volatility. Major price surges occurred from mid-2019 to mid-2020 and again from 2023 to 2025, driven by COVID-19, US rate cuts, and geopolitical tensions.

Transformational assets: Bitcoin and digital assets

Bitcoin is no longer just a speculative tool. As it’s included in ETFs, sovereign funds, and corporate balance sheets, it’s transforming into a digital reserve asset. As of February 2026, Bitcoin trades around $64,150. Over the past decade, Bitcoin has gone through multiple full cycles, with high volatility but an overall upward trend, attracting institutional investors and government allocations.

Growth assets: AI and infrastructure

These are assets with sustained high revenue and profit growth in the coming years. Data centers, AI servers, and cloud computing have high costs and entry barriers, but once established, they create deep moats.

NVIDIA is a leader in AI computing, with GPUs and data center platforms serving as core infrastructure for large AI models. Its strong integration of hardware and software maintains technological advantages and high profit margins. It exemplifies the long-term story of commercialized computing power and profit expansion.

TSMC is a semiconductor foundry leader, supporting AI, metaverse, and automation industries. With advanced technology and close cooperation with major AI firms, it maintains steady long-term orders. As a key player in the global tech supply chain, demand is unlikely to decline sharply, making it a direct and relatively stable target for Taiwanese investors participating in global AI growth.

NextEra Energy is one of the largest green energy and grid companies in the US, owning renewable energy and grid assets, including power generation, energy storage, and infrastructure. With natural advantages in scale and regulation, its profit structure is stable. As AI energy demand surges over the next decade, investments in power and grid infrastructure are more stable than just solar or wind power.

Cornerstone assets: Index ETFs

0056 High Dividend ETF focuses on high-yield stocks, distributing profits almost annually. Over the past decade, it has paid out 60% of profits and seen a 40% increase in stock price. Investing 100,000 annually, even if dividends are spent, after 13 years, the annual dividend alone would be 100,000; after 25 years, it would exceed 220,000. Post-retirement, monthly dividends of around 40,000 can serve as an additional income source.

SPY US Stock ETF tracks the top 500 US companies. Over the past decade, its stock price increased from 201 to 434, with a 116% return. The average annual dividend yield is about 1.1%, with capital appreciation around 8%. Although dividends are lower and taxed, its capital growth far surpasses Taiwan stocks. If you believe in the US economy’s resilience, this is the most stable long-term wealth-building tool.

The Power of Compound Interest with 100,000

Most of these investments don’t require large sums; a few thousand NT dollars can start regular investments or participate in major market moves via CFDs. With good investment mindset, selecting promising projects, and giving enough time for compound interest to work, small investors’ 100,000 can gradually grow into substantial wealth. Becoming a small millionaire or billionaire isn’t an impossible dream — it’s the result of steady, step-by-step execution.