Can index funds bring you good money

Investing simply explained Index funds: How saving with ETFs works

Invest with a decent return and little risk

If you are fed up with 0.01 percent interest on your sour savings, there is an alternative that has historically brought decent returns with little risk.

How do ETFs or index funds work?

It is about a basket or a package of many hundreds or even thousands of shares in which you can participate. You are now involved in Apple, BASF, Nintendo and Toyota at the same time.

How much money do you need for ETFs?

You can start with 50 euros. Simply, or monthly. With the 50 euros, you may then be involved in 1500 companies at the same time. But you can also invest 10,000 euros, but never all of your savings.

What other prerequisites are necessary?

A custody account is the name of the account for your fund and lots and lots of time. You should invest in ETFs with a horizon of 10 to 15 years. You shouldn't need your 50 or 500 euros that long. This is why you should never invest all of your savings in ETFs. Two to three months' income should be placed on the daily money account so that they are available at all times.

When should you start with ETFs?

As quickly as possible. There is no right entry point and no wrong time. It is best to invest a fixed sum in your ETF every month.

Which ETFs should you invest in?

They all have weird names. It is best to use an ETF on a global stock index such as the MSCI World or the MSCI All Countries. You can find good and inexpensive funds here, for example.

How do I buy ETFs?

First you set up a custody account, i.e. the account for your funds. This is free of charge at a number of banks. Then go to the website of this bank and follow the instructions to buy.

But equity investments are unsafe, aren't they?

If the stock market goes up and down, don't be alarmed. You have invested your money on a long-term and very broad basis. In the past, you would only have made losses if you only invested briefly and sold in the middle of the crisis.

How do you make a profit with index funds?

You didn't make the profits until you sold your ETF again at a higher price. So think about when you need the money in good time. Start a few years in advance to gradually get the ETFs into your overnight money or fixed-term deposit account.