Investing: a judicious choice?
Investing always involves risks, but taking risks goes hand in hand with potentially higher returns. Conversely, if you put your money in a savings account, you take less of a risk, but you have no chance of a higher return. You might not know if investing is a solution for you. Below, we set out the main advantages of investing.
Why start to invest?
Create a legacy
By placing your money in a savings account, you have a guaranteed return, but this is generally lower than the potential return on investments in risky assets (equities). On the other hand, while investing may enable you to earn a higher potential return, it also entails a risk of loss of capital. When you invest, it is important to have a long-term vision and to keep your cool when markets are volatile.
Diversify your assets
Starting to invest enables you to diversify your savings. It is always advisable to have some of your money readily available in case of difficulty. Only the money you do not need in the short term can therefore be invested.
Creating a diversified portfolio – in terms of share classes, sectors and/or regions – is the basic principle of investing. With a diversified portfolio, if a financial instrument performs less well, it will not impact your entire portfolio.
Invest in what you care about
The advantage of investing is that you can choose where you put your money.
Thanks to our advanced search function, you can easily find the investments that suit you.
Past performances aren’t a guarantee of future returns. MeDirect does not provide investment advice.