06 june 2017
Investing: what if it was not that complicated?
Many of us saver whether regularly and automatically or occasionally. To complete a project or deal with the unexpected, it is essential to have savings. Yet there is an alternative to grow your money.
Saving: a difficult environment
The current economic environment is driving rates down. And this phenomenon is impacting the return on our savings accounts. While some people are resigned, others seek higher returns. Building up capital over the long term is a major concern for many of us. The higher the return, the faster you will reach your target.
Investing: could it be the solution?
Investing seems to be the clear and obvious solution. But it is not always easy to take the plunge. While the potential returns may be attractive, the complexity of the markets can be scary.
Did you know that more of us invest than you might think? In fact, more than 1.5 million Belgians have chosen to build up a pension capital by investing regularly in a pension fund.
Apart from the tax advantage, investing in a regular investment plan is just like investing in a pension fund. You automatically invest as often and as much as you want (starting from 25 euros) in a mixed fund (in other words a diversified basket of shares and bonds). It makes investing quite easy and accessible!
Taking the plunge: the tailored investment plan
You can choose the best investment plan option for you, to suit your needs.
- Optimal diversification: choosing the right share or bond is not straightforward. But investing becomes far easier when you decide to do it through a diversified fund managed by experts.
- Measured risk: investing involves risks because the capital is never guaranteed. However, it is possible to select the level of risk you want to take. The choice of underlying fund is therefore important.
Risk and return are closely linked. The higher the proportion of shares in the fund, the higher the risk of investing in this type of fund and the higher the expected return (and vice versa).
- Regular frequency: there is no single right time to invest, and it is impossible to forecast market performance. Consequently it makes sense to invest regularly and automatically. By investing the same sum regularly without emotional involvement, you avoid buying too much when the markets are expensive.
- Flexibility: the investment plan is flexible. Everything can be adapted, including the term, the frequency and the amount. You can also stop the plan at any time.
- Long-term horizon: to liquidate the plan and recuperate your cash, you need to sell the units acquired in the fund. Naturally the ideal scenario is to sell at a good time. That means when the value of the units is higher than the amount invested, otherwise you risk making a capital loss. To that end we always recommend that you have a sufficiently long-term investment horizon to withstand market fluctuations.