Consider All Types of Investments

At the moment, on the market we have different financial options and different financial products. You can keep your money in cash on deposit like Tagesgeldkonto, Girokonto, but of course, due to the inflation rate, your money doesn’t work for you. You can also start investing your money in properties like mortgage or property equities, but in the financial situation that we have at the moment it’s a quite risky and, of course, not very liquid like in a different asset class. You can also invest in equities, investment in individual companies like stocks, where you start with a small amount and invest in stock markets like, for example, bonds or ETFs. Bonds are loans to companies or governments and they are for those ones who would like to invest a little bit secure product. If you would like to also keep your chance and also have the higher return on investment, you can start thinking of investing in stocks, where you buy a part of the company and you literally own this part of this company. There is also the option to invest in funds: active-managed funds or passive-managed funds. One of the options is, for example, passive-managed funds, they’re called Exchange Traded Funds (ETFs) and they are traded also on the stock markets like bonds, like stocks. And ETFs are a form of passive investment. They track a specific market like, for example, DAX or Dow Jones Index, and try to replicate its performance by purchasing shares in the companies inside the market. Why they are a good possibility for those who would like to just start investing money? Because they are very low cost efficient-asset class. They are high quality and they are very diversified in terms of assets class. So you can invest with ETFs not only in stocks but also in bonds, also in real estate, if you want, and other equities. With ETFs, you have always this low-management fee and low-minimum investment levels. So that’s why they are more and more attractive. And at the moment, in Germany, more of private financial advisors working with the ETFs due to the cost efficiency, due to the very high liquidity, and due to the high diversification and for the transparency.