Erste Asset Management

Five pieces of advice for saving with a fund savings plan

Five pieces of advice for saving with a fund savings plan
Five pieces of advice for saving with a fund savings plan
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If you want to lay a financial foundation for yourself or your children, you will find it hard to avoid securities. This is because savings interest rates are still well below inflation – and this will not change much in the foreseeable future. Anyone interested in a fund savings plan as an alternative should follow five “golden rules” to ensure success.

Advice 1:  Know, what you are saving for – set your investment goal

The first step when it comes to investing money: determine what you are saving the money for. No matter if you want to treat yourself to something at a later date, such as a trip or a car; or if you want to pay for your children’s education. If you set yourself a goal when saving, you will usually be more disciplined and stick to your plan.

Advice 2:  allocate enough time by starting early

Every form of investment is influenced by three central factors: safety, availability, and return. This is also referred to as the “magic triangle”. All financial investments can be classified between the corner points of this triangle. The principle is: the safer and more available an investment is, the lower its yield.

Conversely, those who invest profitably in equity funds, for example, should invest the money for at least five years in order to be able to ride out possible phases of loss. It is important to start early enough. When you invest money regularly and over the long term in yield-generating securities, you can build up a considerable volume of assets in small steps.

The “Magic Triangle”, complemented by sustainability
Return / Safety / Availability

Source: Erste Asset Management

Advice 3:  set your investment amount

A fund savings plan does not have a “too little” or “too much”. For financial provision, you should set an amount that you can handle in addition to the normal costs of living. It should be an amount that can be maintained over a long period of time without having to sell anything prematurely if you need money at short notice. Fund savings plans are available from as little as EUR 50 a month.

Advice: with the Investment calculator, you can calculate on your own how much money you could get back after your savings period.

Advice 4:  assess the risk

There is no point taking high risk in the hope of high profits – this can possibly lead to sleepless nights. It is better to take only the amount of risk that you feel comfortable with. Many investors have recently invested their money in real estate because it is a tangible asset and the risk seems lower. However, what is often forgotten is the fact that shares are also tangible assets because they represent an investment in productive companies.

Investing in a single share can go well or fail painfully. It is better to rely on the experience of professionals and invest your savings monthly in investment funds. With funds, you regularly buy shares in a variety of different companies, thereby reducing the risk of suffering losses. Also, you save yourself the trouble of watching share prices and headlines every day.

Advice 5: it’s not difficult, and it’s not expensive

Investing money through funds in equities, bonds, real estate, or commodities requires experience and advice. Professionals know what to look for and which investment is suitable for you. The customer advisors of Erste Bank and Sparkassen are happy to offer you tailor-made investment advice, regardless of whether the amounts involved are small or large. If you talk to an advisor at your Erste Bank and Sparkasse now, we also throw in a sweetener – for example, no custody account fee for three years with an s Fund Savings Plan!*

For more information on funds and fund savings plans, please click here.

* Only online: you pay no custody account fee with the Investment Plan custody account for three years, no minimum custody account fee, and no minimum securities account fee up to a total market value of EUR 10,000 of the custody account. If you exceed the EUR 10,000 limit, the Investment Plan custody account is switched to a normal custody account. The special conditions listed here only apply to one s Investment Plan custody account per customer. In addition, you receive a 20% discount on the respective transaction fee for each purchase of securities. You find the detailed list of the total costs of the s Investment Plan on the statement in the Investment Plan contract before agreeing to it online.

For a glossary of technical terms, please visit this link: Fund Glossary | Erste Asset Management

Legal note:

Prognoses are no reliable indicator for future performance.

Please note that an investment in securities also involves risks in addition to the opportunities described.



Legal disclaimer

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. Our languages of communication are German and English.

The prospectus for UCITS (including any amendments) is published in accordance with the provisions of the InvFG 2011 in the currently amended version. Information for Investors pursuant to § 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in connection with the InvFG 2011. The fund prospectus, Information for Investors pursuant to § 21 AIFMG, and the Key Information Document can be viewed in their latest versions at the web site within the section mandatory publications or obtained in their latest versions free of charge from the domicile of the management company and the domicile of the custodian bank. The exact date of the most recent publication of the fund prospectus, the languages in which the Key Information Document is available, and any additional locations where the documents can be obtained can be viewed on the web site A summary of investor rights is available in German and English on the website as well as at the domicile of the management company.

The management company can decide to revoke the arrangements it has made for the distribution of unit certificates abroad, taking into account the regulatory requirements.

Detailed information on the risks potentially associated with the investment can be found in the fund prospectus or Information for investors pursuant to § 21 AIFMG of the respective fund. If the fund currency is a currency other than the investor's home currency, changes in the corresponding exchange rate may have a positive or negative impact on the value of his investment and the amount of the costs incurred in the fund - converted into his home currency.

Our analyses and conclusions are general in nature and do not take into account the individual needs of our investors in terms of earnings, taxation, and risk appetite. Past performance is not a reliable indicator of the future performance of a fund.

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