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Investment tips: where to put your savings?

2020-02-10T10:31:29.440Z


Overnight money, time deposits, action funds, gold: The FR provides an overview of investment forms and the expected return.


Overnight money, time deposits, action funds, gold: The FR provides an overview of investment forms and the expected return.

  • Do you have any money left?
  • The most important investment tips
  • Tips for the right investment
    Anyone who has saved a little money or has a large amount at once due to an inheritance must decide what to do with it. Leave it lying around on your checking account ? Then there is the danger that it will probably be spent faster than actually intended - and even if not: it does not increase the amount of money. On the contrary. Due to inflation, the savings will be worth less in a few years.

So a strategy is needed. This can vary depending on the risk appetite. There is the option to park the money very securely and only get a few measly interest or to put the amount in riskier investments and have a better chance of a higher return. The general rule is: do not rely on a single form of investment, but spread the assets and first of all pay off all debts before the money is invested. We give an overview from overnight money to equity funds.

Save - daily allowance

Call money is one of the very safe investments. Everything in a call money account in this country is protected by the German deposit insurance. This means that even in the event of bankruptcy, the bank customer will get his money back up to the amount of EUR 100,000. The account holder can also withdraw money at any time, at the same time the temptation to spend the money for less important things is not so great if it is not in the current account that is in everyday use. There is only very little interest, but at least more than in the checking account. "Daily allowance is suitable to have something on the high edge for emergencies," says Annabel Oelmann, chairwoman of the Bremen Consumer Center.

The return is zero to 0.2 percent on an investment of 10,000 euros at banks with German deposit insurance. After a year, the return would be a maximum of 20 euros. A little more for foreign deposit insurance.

Save - time deposit

Fixed-term deposits work similarly to call money, with the difference that the money is tied up for the term and the customer has no access to it during this time. There is a little more interest for that. The money is also protected by the German deposit insurance. "However, I recommend a maximum of three years as an investment period," says Max Herbst from FMH Financial Advisory. "If there are higher interest rates at some point, there is no risk that you will not be able to get the money and can invest again on better terms."

The yield is 0.01 to 0.85 percent on an investment of 10,000 euros with banks with German deposit insurance and an investment period of three years. The return in this case is a maximum of EUR 255 (source: FMH Finanzberatung).

Saving - equity funds

Actively managed equity funds are often recommended by bank advisors. A fund manager invests in a range of securities, not just a single stock, so the risk is spread per se. The average return here is higher than for overnight money or time deposits, but at the same time the risk of losing money. "A fund can make fluctuations of plus and minus five percent at any time," says Oelmann. You have to be able to endure that. "If someone gets sleepless nights from it: fingers away," she advises. Otherwise it is important to plan a sufficiently long investment period. If the money is intended for retirement provision, for example, a gradual exit should be planned in good time so that the money is not used when the market is doing badly. It should also be borne in mind that the fund manager incurs costs.

The average return is 7.6 percent with a deposit of 100 euros per month into a global equity fund over the past ten years (total amount of the deposit 12,000 euros). The plus would be 5722 euros including costs and a sales charge (source: Federal Association for Investment and Asset Management).

Saving - Exchange Traded Funds

ETF is short for Exchange Traded Funds, which are exchange-traded index funds. The difference to actively managed funds is that the ETF simply tracks an index, such as the German stock index Dax. So there is no need for a fund manager. This reduces costs. There is no task surcharge and the administration fees are lower. In addition to the Dax, there are also other indices, such as the MSCI World, which comprises over 1600 individual stocks worldwide. "Such a fund that is spread around the world is particularly suitable for beginners," says Oelmann from the consumer advice center. Such a wide spread also reduces the risk. If one title weakens, enough other titles can compensate for this loss. As with actively managed funds, the following applies: a sufficiently long investment period should be selected so that fluctuations in the market can be measured. Of course, these are also available from ETF. And there is another catch: Since fund managers do not earn anything from this type of investment, banks or savings banks generally do not offer an ETF on their own. So investors have to make themselves smart and open a deposit.

The average return is 8.7 percent per year on the MSCI World from 1975 to 2018, maximum loss from August 2000 to March 2003: minus 54 percent (source: Finanztip).

Save - shares

Buying individual stocks is very risky. "Here, the basic rule of investment, to spread widely, is not given," says Oelmann. This is why this type of investment is not very suitable for small investors. If the company from which the investor has bought shares has problems, the investor senses this directly and has to accept losses.

The expected return cannot be generalized. More than 51,000 companies are listed on the stock exchanges worldwide.

Providing for retirement: How old-age provision works with shares *

Save - gold

Like individual stocks, gold is one of the very high-risk investments. "I strongly advise against using only one raw material," says Oelmann. This is the same game as for individual stocks: "If I wanted to show gold as a small investor somewhere, then I would only use a mixed fund that contains a gold component," said the expert.

The yield was minus 2.6 percent between 1990 and 2000, and 7.4 percent in the following years from 2000 to 2018 (source: Finanztip).

By Theresa Dräbing

Do you want to retire earlier? With this trick, the dream of retirement at 63 quickly becomes a reality

* fr.de is part of the nationwide Ippen-Digital network

Source: merkur

All news articles on 2020-02-10

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