What is meant by this and what advantages and disadvantages of the investment forms, this table should clarify:
One form of investment that is increasingly being chosen is mutual funds. This can be done in two ways: either in the form of savings plans or just with the one-time investment.
The savings plan sets an amount that you want to invest on a regular basis
- With a fund savings plan, you have a choice of different funds to invest in, for example, a private pension plan.
- ETF savings plans also invest in funds. These offer a broad diversification into individual values and high transparency: They are composed of the same shares as the corresponding index. Depending on how high or low the price of the fund is, more or less shares may be purchased. Regularly deducted from your account is always the same amount. Due to price fluctuations, however, it also leads to losses.
- With certificate savings plans, you have the option to save a selection of certificates.
- In one-time investment, the payment, as the name implies, not monthly, but once. The amount can be different. That depends on your goal, your desired duration and your risk appetite. Again, you have the option to repay capital at any time. Success also depends on the time of investment.
What are the advantages of disposable systems?
- Basically, they are particularly suitable if you have a larger sum available that you want to invest in the medium or long term.
- The complete one-time investment will earn interest immediately. This may result in a quick return.
- With one-time investments in a savings account, you have a lower risk: your assets will earn interest at a fixed rate that is known to you from the start. You can always dispose of the money and thus act flexibly according to your individual plans.
- If you invest in stocks, you can buy and sell them at any time on the stock market.
- In order to catch the best possible time when investing in mutual funds or shares, you have the opportunity to buy individual shares over a period of several weeks or months.
What should you pay attention to?
- One-off investments in funds are subject to subscription fees. This is a contribution that is due when the fund is acquired. Its height is determined by the investment company. This varies between zero and seven percent. First and foremost, this covers sales costs.
- Often, investors receive 100% off the initial charge. However, this only applies in connection with certain minimum investment sum.
- When investing in securities, you are at greater risk: if the price falls, it also has a negative impact on your wealth.
- Even if you have a large amount available, you should invest in different forms of investment. This will give you the greatest possible risk diversification.
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