Fund-based saving
When looking for alternatives to traditional forms of investment, you will sooner or later find your way to fund-based saving, which allows you to make regular investments in funds.
Flexible investment with fund savings
Everyone has different plans for the future – and people’s needs when it comes to financial planning and security are just as diverse as their goals in life. Depending on your savings objective, investment horizon, and risk appetite, there are many different types of fund-based savings plans to choose from. In the end, it is important that the investment meets your personal needs.
Investing with promising earnings opportunities is by no means a matter of course. Which makes it all the more important to find the right investment.
How does fund saving work?
Investing with funds is possible starting from just EUR 3 a month.
Fund saving explained simply
A fund savings plan is a savings contract in which regular investments are made in funds. This is characterized above all by flexibility and risk diversification. However, unlike a savings account, a fund is not subject to deposit protection. Rather, market-related price fluctuations - upwards, but also downwards, and even capital losses - are part of funds.
How does fund-based saving work?
Conventional savings accounts with their low interest rates bring very little in the way of returns. But fund-based saving lets you actively use the earnings opportunities provided by shares or bonds with low monthly deposits – and potentially build wealth over the long term, while accepting the corresponding risks. But a number of factors need to be considered.
Broader risk diversification with mixed funds
Investors often choose mixed funds for fund-based saving. These are funds that invest on a global basis in various asset classes such as stocks, bonds, and commodities and also in different markets in some cases. Such funds have become veritable best sellers over the past years because of their broader risk diversification. Depending on the prevailing market conditions, however, capital losses can never be ruled out.
Investment can be adapted based on investor type
Funds have different risk-return profiles. This means that the investment can be adapted to the risk tolerance of the investor. Generally speaking, the higher the risk of an investment is, the higher the earnings opportunities are, as well.
Fund-based saving is a matter of trust
Raiffeisen Capital Management’s highly qualified fund managers act with care and to the best of their knowledge and ability to optimally manage investors’ capital. Investors benefit from the know-how of one of Austria’s largest asset managers. However, capital losses are still possible.
More about: What funds are there?
What is the cost-averaging effect?
Investing on a monthly basis can be profitable over the long term. When you make regular investments of the same amount in funds, you acquire more or fewer units for one contribution depending on the current price of the fund. Because the contributions remain the same, you purchase more fund units when prices are low, and fewer units when prices are higher. Because more fund units are acquired when prices are low, this results in a more attractive average purchase price over the long term – though capital losses cannot be ruled out.
Sustainable investing
Where does my money go and what does it achieve? You can achieve more with your investment - namely, make a contribution to greater sustainability. Find out more about our range of funds with a focus on sustainability.
We can only provide you with basic information on the subject of fund savings. However, this information cannot replace detailed professional advice. Every investor has individual needs, and the range of investment funds is extremely diverse. Your Raiffeisen advisor will be happy to help you choose the right investment fund for you.