Managing your capital

6 November 2020

Is investing an alternative to saving?

Is it easy to invest? Is it right for everyone? Isn’t it risky?

Do you want to enjoy your current lifestyle long into the future? Whatever the nature of your projects, your needs or your desires: over the long term, investing could offer you a higher return than saving.

Saving, yes, but..

It is best to have a savings buffer of about three to six months of your net salary to deal with unforeseen circumstances. However, in today's environment of persistently low interest rates, you lose purchasing power when you put your money into a savings account. The reason for this is that the prices in shops rise faster and higher than the interest rate on your savings account will earn for you. So, if you can, it’s advisable to save for short-term expenses (and unforeseen setbacks) and to invest for the future.

Investing: a good alternative?

Is it profitable?

Investing can generate a higher return than savings, especially over the long term.

Is it risky?

There is the risk of little or no profit, or the loss of some (or even all) of your capital.

How can you limit that risk?

First and foremost, by diversifying your portfolio. For example, do not invest in a handful of separate shares, but in investment funds (1). These are made up of dozens or even hundreds of shares and/or bonds. You can also spread the risk even more by investing in different regions and investment themes. Risk limitation is also achieved by investing for the long term: at least three years, but preferably longer. Choose the solutions that are in line with your investment profile and your risk appetite.

Invest little by little...

Do I need to be rich to invest?

No. You can start with just 25 euros per month.

4 good reasons for periodic investment

  • Optimal diversification: you invest in one or more investment funds, which are managed by experts. They select the best investment opportunities, analyse the risks, and closely monitor performance and economic indicators.
  • Measured risk: you choose the investment funds that are right for you, depending on your investment profile and risk appetite. Your ING contact person can help you to determine your investment profile and to make the right choices.
  • Regularity: investing regularly and automatically smooths out the market fluctuations. Your investments are spread over time. Your money is therefore invested during periods of declining and rising markets.
  • Flexibility: duration, frequency, amount (from 25 euros per month) ... The terms can be adapted according to your investor profile. Moreover, you can also suspend or stop your investment at any time.

Want to start investing?