Investing pays off in the long term
If you had invested EUR 6,000 in the European market in 1998...
This example assumes that you invest some of your savings in a stock market index. Stock market indexes, such as the Dow Jones or the Bel 20, follow the evolution of a particular group of stocks. In this case, you opt for the MSCI Europe Net Return index, which includes the main European equities.
...and let your investment grow for about 16 years?
You decide to let your investment grow from December 1998 to July 2015. During this period, the index experiences rises and falls, but the overall trend is upward. After a dip, the index recovers over the next 7 years, despite the recent economic crisis. Better still, it continues to climb.
Then you have EUR 12,442 today!
You made a profit of EUR 6,442, equivalent to an average annual return of 4.5%..
- This yield is significantly higher than a savings account.
- Since you started early, your money had more time to grow
- You were right not to touch your investments during this time, even when the market collapsed.
- Even if you had started when the price fell, you would have reaped a nice profit.
To sum up: Long-term investments outperform traditional saving in terms of yield.
Attention: Past performance is no guarantee for future results.
And what if you do not have a big starting capital?
If you do not have the means to directly invest a large sum of money, it is also possible to gradually build it up. Invest small amounts on a regular basis, from EUR 30 per month or EUR 200 per semester for example, to spread your investment over time, while enjoying a range of benefits.
Suppose you invested EUR 30 a month...
As in the example above, you chose to invest from December 1998 to July 2015 in the same market index. But this time, instead of investing EUR 6,000 from the start, you spread your investment over time and place EUR 30 a month. With this distribution over time, stock price fluctuations have less impact on your investment. Therefore you do not have to worry about the right time to make your investment purchases.
For more information, take a look at the Flexinvest page.
...then you have EUR 10,502 today!
You have made a profit of EUR 4,502, equivalent to an annual return of 6.4%..
Wondering why your profit is lower than in the previous example? This is because your starting capital was smaller and your subsequent payments could not grow for such a long time.
To sum up:
- Even spread out over time, investment yields outweigh those of traditional saving.
- A large starting capital is not necessary to start investing.
- You do not have to worry about when to buy.
Attention: Past performance is no guarantee for future results.
Getting started in the investment world
You want to start investing? We are happy to give you advice on suitable products to help you get started right away.
Automatic diversification of your investments
Flexinvest allows you to automatically invest a set amount at a fixed time (from EUR 30 per month), a formula that is both simple and effective. You also have the option to adjust your investment plan whenever you want.
Your first investment
Anyone can invest, even those who do no own a fortune or have little time. Are you ready to make your first investment? We put you on track in just a few steps.
Focus on your investment journey
Wondering how to grow your savings? Find out how you can stake out your own optimal savings and investment route.
