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We need to be sure that you understand the risks related to investing before we can offer you a portfolio. Please find more information about these questions below. We recommend you read this very carefully to increase your knowledge of investing.
What exactly is an investment fund?
An investment fund is a financial product that brings together a large number of investors. This means you are investing in a basket of instruments, which may consist of shares, bonds, real estate and/or cash. One of the biggest advantages of an investment fund is the spreading of risk. This is because a fund invests in tens to even hundreds of different shares or bonds. A fund manager will manage this basket professionally. It is important to know that a fund does not have a capital guarantee and that the value can fluctuate. In general, a fund has a low entry-level. At MeDirect you can purchase most funds from EUR 100.
How should I assess the returns of my fund portfolio?
First and foremost, it is not a good idea to evaluate the returns of your fund portfolio on a daily basis. Investing is best looked at over the long term. The financial markets can grow but also fall substantially, even in one day. The value of your fund portfolio will fluctuate as well on a daily basis. Long-term investing gives you enough time to recover from a possible short-term stock market correction.
If you allow your portfolio to be managed at MeDirect— also called wealth management or discretionary management — MeDirect ensures a sufficiently global allocation of shares and bonds. This also limits a possible drop caused by one specific region, which, for example, might just be suffering a dip. Keep in mind that stock markets can experience a low period and that a short-term negative return is possible.
Sorry, you have answered one of more of the knowledge question incorrectly.
We need to be sure that you understand the risks related to investing before we can offer you a portfolio. We will direct you to our ‘start to invest’ section. We recommend you read this very carefully to learn more about investments.
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This type of investment is not appropriate for a time horizon of less than 3 years. If you would like to continue, please choose a different option. Otherwise you might want to consider savings.