Why is a savings plan one of the best investment products on the market? - EuroFinance

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


CFDs' Risk Warning

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Why is a savings plan one of the best investment products on the market?

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A savings plan, or a scheme for systematic investment in mutual fund shares, is an extremely powerful, multi-layered and effective investment product. In a few words, we will try to convince you of its clear advantages:/p>

1ST
You do not need in-depth knowledge of financial markets. In fact, you don’t need any knowledge of financial markets. Your investments are managed by proven professionals, and at a very affordable price.
2ND
You save in small amounts without noticing. You don’t have to waste your time visiting an office. Simply request your savings plan and set up a regular automatic transfer from your account of the monthly installment due under the plan.
3RD
You can skip an installment without causing your savings plan to terminate.
4TH
You stop worrying about whether NOW is the best time to invest. A simple example. Imagine that you are the best market analyst and you can predict the equity market bottom for any given year by investing $1,000 in the S&P 500 index at its lowest level for that year over a 10-year period (2010 to 2019). At the end of 2019, thanks to your “skill in buying at the bottom of the market,” the market value of your investment would be $20,565 representing an average annual return over the period of 13.50%. Now imagine that during the same period you invest monthly on the first of the month an amount of $83.33 (12 * 83.33 = $1,000 per year) in the S&P 500 index at the current market price. Without your super-analytical skills and knowledge of the financial markets, the market value of your investment as of 31.12.2019 would be $19,489 (or an average annual return over the period of 13.41%). Impressive, right?
5TH
You don’t pay taxes on the profit from your investment.
6TH
Your savings are at your disposal at any time. You can withdraw them, along with the returns you’ve earned, whenever you like, without paying additional fees or commissions.
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