Start investing, choose automatic investing
Given that saving currently yields practically nothing, it seems obvious to start investing . However, many people still have their doubts. They are aware of the greater risks associated with investing and are afraid of possible losses.
Investing large amounts at once is also a bit scary for many new investors. For them, automatic investing can be a good choice. In this blog, we will inform you about the ins and outs of automatic investing.
Automatic investing: what exactly does that mean?
Another name for automatic investing is periodic investing. With automatic investing, you can make a periodic deposit with a fixed amount. There is then no need to deposit one large amount at once. You can determine yourself how large the amount is that you want to deposit. For example, you can make a deposit once a month, quarter or once a year.
The benefits of automatic investing
The various advantages of periodic investing at a glance:
Small amounts – You do not need a large starting capital to get started with this form of investment. You can already start investing automatically with small amounts, e.g. €50 or €100 per month. It is not necessary to reserve all your savings. You have the opportunity to shape your investments yourself.
Spreading – With periodic investing, it is possible to reduce your investment risk by having a greater number of entry points . This means that you do not have to worry as much about whether the prices are high or low at the time of entry and may have reached a peak. With different entry points, you will ultimately succeed in realising an average purchase price for your investments. One of the core values of investments, namely spreading, is also applicable here, because with automatic investing you spread your investments over time.
The different ways to invest automatically
- Periodically invest in shares, bonds or other financial products for a fixed amount.
- Have your investments made periodically , for example through an asset manager.
Periodic investing in an investment fund , e.g. in an ETF or index fund.
You now spread your investment risk to an even greater extent by choosing not only multiple entry points but also a diversified investment portfolio. When investing automatically in an ETF, an index is followed, such as the AEX, the S&P500 Index or the MSCI World Index.
Compare and start investing automatically!
To start investing yourself (automatically) you need a broker. There is a large range of brokers and they differ a lot from each other. Comparing pays off! Compare the range of brokers and start investing.