Investing for beginners

If you want to get into investing but don’t know how, you’ve come to the right place. In 8 simple steps, we will guide you through the various investment options, the risks, and the choices you can make.

You will find all the information here to be able to get started in a way that is right for you. Simply follow the steps, take notes, and design your personal plan. Good luck!

To step 1

Get your investing off to a well-informed start in 8 steps

1. What is investing?

Learn what investing with ABN AMRO entails and what you can invest in. Find out what the best time is to start and why investing really is a long-term pursuit.

To step 1

2. What type of investor am I?

Let’s take a look at you. What are you like when it comes to money? Are you patient enough? What would be a better fit for you, active investing or passive investing? And how do you deal with risk?

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3. Can I invest risk-free?

By now you know that investing means taking risk. You could lose all or part of your investment. There is no such thing as 100% risk-free investing. There are, however, ways to limit the risk.

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4. How do I set my strategy?

When you invest for the long term, it’s a good idea to set yourself some rules. Read more about setting yourself a goal, your budget, and your risk. And don’t forget about the fees!

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5. How much can I afford and do I want to invest?

Needless to say, you should only invest money you don’t need for a while. To figure out how much that is, take a look at your income, spending, and savings buffer in step 5.

To step 5

Start investing with ABN AMRO

6. How can I invest?

If you are raring to get started with investing, the next step is to choose the investment option that suits you best. We’ve prepared a run-down of the features of the most popular investment options for you.

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7. Now let’s get started with investing!

After choosing an investment option at the previous step, you’re now all set to start investing. Here are a number of tips to get you off to a good start.

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8. Congratulations, you’re an investor! What’s next?

We hope you will keep enjoying your investing. In this final step, we will share a few more things that are good to know for the long term.

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Frequently asked questions about investing for beginners

What is investing?

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.

Why start investing?

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.

Is investing right for me?

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.

Get help making your choice >

What’s a good time to start investing?

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.

What can I invest in as a beginner?

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.

What can I get out of investing?

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.

What does investing cost?

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.

What are the risks of investing?

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.

Investing involves risks

Investing involves risks. You could lose (some of) the money you invested. If you are going to invest, it is important that you are aware of this. Invest with money you can spare. Read more about the risks associated with investments.

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