When it comes to the stock market, numerous myths and prejudices still circulate today. For example, stock market investments are only suitable for professionals and gambling super-rich people.
Surveys show that Germans in particular are very hesitant when it comes to investing in shares. They are hardly convinced that shares are an effective way to build up wealth. 40 percent of survey participants even categorically reject investing in securities.
Stock investment also possible with low risk
Not only the older generation but also the younger generation shies away from the stock market. The form of investment simply appears to be too risky. However, experts agree that shares are indispensable when it comes to achieving a worthwhile return.
In earlier times, a savings account was regarded as a guarantee of security, even if the interest rates were quite manageable. However, high returns are definitely possible even with the desired security. The magic word in this context is slipper portfolio. This designation can be traced back to the fact that the investment strategy should be as comfortable as slippers.
A combination of a shared depot in the form of ETFs or funds, as well as a conventional daily money account is recommended. Depending on the individual risk appetite, the corresponding returns can be.
A defensive strategy consists of investing 25 percent in equities, for example in the form of stocks trading europe, and allocating the remaining 75 percent to the overnight deposit account. A middle way is to allocate 50 percent to each of the two investment options, while a ratio of 75 percent in equities and 25 percent in the overnight deposit account is riskier.
However, a particularly attractive return can also be achieved with the latter option. The first step is therefore to take a closer look at your personal risk tolerance.
Particularly recommended: ETFs and funds
Beginners are advised by financial experts to invest in ETFs in particular. These represent a particularly favorable type of fund. With these, investors participate in the general performance of the respective stock exchanges. It is possible, for example, to invest in DAX ETFs or also the REX – i.e. the bond index.
The ETF share of the investors therefore always takes the same development as the index represented by them. However, fees in the form of custody and transaction costs must be deducted.
However, critics of ETFs often claim that active fund management to counteract falling prices is neglected in this area. However, the long-term trend of DAX and Co. shows that fluctuations are automatically balanced out over the years. This makes them an extremely useful way for beginners in particular to build up confidence in the stock market – and without having to buy and sell shares on a daily basis.
In addition, no large fortune is necessary to invest in funds and ETFs. Many savings plans are available for as little as 25 euros a month.
The importance of the daily savings account
If the slipper strategy is followed, the importance of the overnight deposit account in particular should not be underestimated for security-conscious investors.
Its role was occupied in the past by the pension funds, with which an attractive yield could be obtained in times of sinking interest. However, nowadays a further reduction of interest rates is no longer conceivable, which is why the call money account is the appropriate alternative.
Accordingly, particularly anxious investors should transfer 75 percent of their investment sum to the call money account. Large jumps are not to be expected however thereby. After all, this investment currently yields investors just 2.3 percent.