Investing for beginners

Investing is the practice of buying investment products (such as shares, investment funds, and ETFs) to pursue returns in the long term. An investment can generate returns when it increases in value or when the investment comes with a chance of additional income in the form of interest or a dividend. We use the word ‘investing’ for long-term investments. For the practice of buying and selling investment assets to make a quick profit, we use the word ‘speculating’. Investing involves risk. This is because investing costs money in fees and charges and because the value of investments may go down. There is a chance of you losing money on an investment when you sell it.

The expected returns on your investments in the long term are generally higher than the interest you can currently earn on your savings. It can be interesting, therefore, to use part of your savings to invest. Do bear in mind, however, that the money you invest should be money you can afford to lose. This means you should always make sure first that you have sufficient money set aside for unexpected expenses.

Investors increasingly look beyond financial returns alone in making their investment decisions. By investing in sustainable companies, they aim to also contribute to achieving goals for people, society and the environment. Read more about sustainable investing.

ABN AMRO offers you different ways to invest, in line with your level of knowledge and experience. Investing with ABN AMRO means that you decide when to start, how to invest, and when to stop.

Investing may be an interesting way to grow your capital in the long term. Invest only money you can spare, and make sure you also have a buffer for unforeseen expenses. Investing involves risk: you could lose all or part of your investment. It is important that you ask yourself beforehand whether you can live with that.

ABN AMRO offers different ways to invest. Let us help you find out which is the best fit for you. With our choice guide, you’ll know in just a few questions.

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That’s a very good question. The simple answer is that there is no such thing as the ideal time to enter the stock market. No one can predict whether stock markets will go up or down over the coming months. If you are serious about getting into investing, you would be best off starting at different times. There is no need to invest all your money in one go. You can spread it out over several months or even years. This way you also spread the risk and increase your chances of returns.

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There are many different investment products available today. Investors who are just starting out generally opt to invest in funds, ETFs (trackers), and/or shares.

When you buy shares, you are effectively buying a small part of the ownership of a company. The price of a share can go up, down, or stay flat. It all depends on how investors expect the company to perform in the future. Given that share prices can fluctuate a lot, investing in shares is considered high risk.

When investing in an investment fund or ETF, your money is invested along with that of the fund’s many other unit holders. You’re basically buying a small part of the investment fund. The fund invests the money put in by the unit holders in many different shares (an equities fund) or in bonds (a bond fund). Or they invest in a combination of these investment categories (a mixed fund). As you can see, investing in an investment fund or ETF offers an easy way to get a good asset spread in your investment portfolio. This is why this approach to investing is considered less risky than investing in shares (of a small number of companies).

If you want to invest in shares, investment funds and ETFs and take care of everything yourself, you can go for our Self-directed Investing Basic service. If you want the convenience of doing everything online and do not want to have to spend a lot of time on your investments, Guided Investing may be a better option for you. If you have €50,000 or more available for a team of experienced experts to invest, consider Portfolio Management.

To find out more about how to get into investing, we will be happy to tell you what to bear in mind when choosing a good first investment.

The returns on your investments depend on a number of factors. One key factor is time. The earlier you start, the more time you have to grow your capital.

Read more about what you can get out of investing.

Investing costs money. You pay for services like the management of your investment portfolio and, in some cases, for buying and selling investment products.

We charge different fees for Self-Directed Investing Basic, Self-Directed Investing Plus, Guided Investing, and Portfolio Management. Read more about investment fees at ABN AMRO.

There’s no such thing as risk-free investing. While investments can be profitable, they also involve risk. You could lose all or part of your investment. Here are some tips to help you limit the risk:

• Be aware of the risk and don't be swayed by the issues of the day.
• Only invest money you can spare. Maintain a buffer for unforeseen circumstances.
• And remember to put some extra money aside for a rainy day.
• Consider your horizon, i.e. how long you want to invest for, and choose the risk you are willing to take accordingly.
• Stagger your initial investment over a certain period; ‘timing’ the market almost never works.
• Spread your investments if you are doing the investing yourself. Do not invest in just one specific share or shares from one single industry or country. Invest in ETFs or investment funds, for example.

Read more about investing with less risk.