I save 1000 euros per month. How to invest them?
For those who get to save a little more money (1000 euros or more), we have some great tips:
The best long term investment is the ETF product on S&P 500 (or eventualy a combination of ETF on some major indices on type S&P 500). The reasons for investing in the S&P 500 ETF would be as follows:
- It ensures considerable diversification - we are talking about the largest 500 American companies.
- The increased liquidity, being the largest stock exchange in the world.
- It is quoted in US dollars - we have a defense in terms of the exchange rate.
So don t get bogged down with sophisticated strategies, especially when it comes to money for black days. A simple SP 500 index ETF brings you long-term secure returns.
1000 euros invested monthly at 11 per year allows you to have even 5 million euros if you manage to wait for this period for 35 years.
Depending on the type of approach of each investor (active or passive) the amount of 1000 euros should be invested in an ETF portfolio in the case of a passive approach and in a set of shares of some mature companies with a dividend policy stable in the case of an active approach.
At the same time, eliminating the holding threshold in the case of SIFs will make these companies much more interesting for both small investors and investment funds or pension funds.
A sum of money invested monthly, 100 will bring you at least a long term financial security but most likely a profit as well.
The best advice is to have a part of the savings in another place than in bank deposits, during this period of growth on all the exchanges, I would recommend to invest gradually, possibly every 3 months (that is, when a 3000 euros is collected) in the following:
- 30% in listed shares
- 30% in ETFs like MSCI World or S P500
- 30% in corporate bonds
- 10% cryptocurrency
Category: Investing