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ETF savings plan: Build up a fortune with small amounts - this is how it works

2021-06-22T06:10:19.235Z


Fixed or floating rate bank savings plans used to be attractive. They currently only bring modest returns. An alternative to saving money are ETF savings plans.


Fixed or floating rate bank savings plans used to be attractive.

They currently only bring modest returns.

An alternative to saving money are ETF savings plans.

When saving, many no longer rely on interest investments, but on the stock market.

According to Stiftung Warentest,

ETF savings plans *

are suitable

.

The three letters ETF stand for 

Exchange Traded Funds

,

i.e. funds traded

on

the stock exchange

.

Those who persistently save with ETFs would have good prospects of building up a handsome fortune, according to a post on

Test.de.

"

Anyone who pays in 200 euros per month for 30 years

, with a rather cautious return assumption of an average of 6 percent per year, comes to a final amount of around 175,000 euros."

If you like, you can

start with very small amounts:

“Even with small monthly amounts - at most banks from 10 to 25 euros, at DWS and ING even from 1 euros - investors can invest in a broad mix of stocks and in the success of Global corporations like Apple, Microsoft or Alphabet (Google) participate ”,

Test.de

informs

.

“However, European companies such as Unilever and German companies such as Allianz and SAP are also represented in global ETFs. In the long term, the investment in the international stock market usually averaged well over 6 percent per year. "

However, ETF savings plans are not suitable for every saver.

The disadvantage of ETF lay in the

fluctuations course inevitable

.

“Anyone who absolutely wants a reliable and calculable increase in value should not invest in ETFs.

Equity investments have many advantages, but there is one thing they cannot offer: security. "

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Experts advise: Spread risk across many different stocks

With

ETF savings plans

, however, the

risk

can be spread

across many

different stocks

.

"Normally, it would hardly be possible mitzumischen with monthly amounts of 50 euros or less on the stock market," because investors should be sure to return on shares of different companies from different business areas to distribute the risk, "it says on

Test.de

.

Globally diversified ETFs are ideal for this.

Stiftung Warentest: Stock market indices ideal for savings plans

Stock market indices

are ideal for savings plans: "Investors use ETFs to participate in the development of companies in stock market indices - for example in all companies that are included in the Dax." A fund manager is not necessary for this, according to

Test.de.

“We recommend other indices for ETF savings plans, but in principle they work the same way.” With ETF savings, you choose a rate that flows into shares of the selected index fund.

"With every month investors increase the number of their fund units and, depending on the current ETF price, hopefully also the amount invested."

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Step by step to the ETF savings plan

If you want to set up a savings plan, you need a

securities account with a bank

or

broker

. However, not all of them offer

ETF savings plans

- you should compare them

carefully

beforehand. If

you

want to

open

a

custody account

, you can do so in a bank branch - or online. “Online customers have to identify themselves - with their ID in a post office or via video ID in the on-screen dialog on their computer or smartphone. In any case, you have the statutory Securities Trading arc (WpHG) fill, "said the reference to

Test.de

.

Also set a

savings goal

. “Think about the

approximate saving period

and the investment goal, for example retirement provision. That has an influence on the ETF selection. ”You can choose one or more ETFs. For most investors,

according

to

Test.de

, funds based on a broad

global share index

are suitable

. What

about the

savings

interval

and

savings

amount

? Here the experts recommend “saving monthly”, but most banks also allow other intervals, for example quarterly. “Save only as much as you can best spare at least ten years. You can change the amount at any time. ”

(Ahu) * Merkur.de is an offer from IPPEN.MEDIA.

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: Rule of thumb: You can easily save money with the 752 rule.

With these seven tips you can save a lot of money in everyday life

With these seven tips you can save a lot of money in everyday life

Source: merkur

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