Start investing: you can do this with 100 euros per month

By putting money aside every month, you gradually build up capital. Investing in the stock market is one possible route to this end. But what is the best way to invest with a monthly deposit of 100 euros? Spaargids.be advises.

Monthly investing has several advantages. You do not need to have a large starting capital right away and you spread the risks. After all, with a one-off entry for a larger amount, you run the risk that the stock market will fall sharply shortly after your purchase, with all the consequences that entails. Spread investing, on the other hand, allows you to better absorb such shocks. In case of a downturn in the stock market, you also buy cheaper.

To invest monthly, you can buy individual shares through a bank or broker. Several banks also have their own online investment platform. This is the case, for example, with Bolero from KBC and the investment app Re=Bel from Belfius. To trade shares you need a brokerage account, where you can monitor and manage your investments. Compare the services and cost of different brokerage accounts here. 

Individual shares

Individual shares generally have a lower cost than actively managed investment funds at the bank. However, they do not always lend themselves to small monthly investment amounts. At Bolero, for example, you pay 7.50 euros brokerage fees for every purchase up to an amount of 2,500 euros. If you buy shares on the Brussels stock exchange for 100 euros, you immediately lose 7.5 percent in return. Due to their high price, some shares are also not within reach of every investor. The instacart ticker is found online. For example, a budget of 100 euros is not sufficient for the purchase of a share of Sofina, which costs more than 300 euros. The options to buy part of a share are currently limited to a few online brokers, such as Bux and Lynx.

Investment funds

Another option is to invest through a fund. In that case, you invest in a basket of shares, bonds or other investment instruments. An advantage of such a formula is that you immediately invest in various investments. Where with individual shares the price drop of one company completely affects your invested capital, with an investment fund the other components can level off or even completely compensate for the effect of that falling price. Most banks offer a choice between more defensive funds and dynamic funds with a higher risk profile.

You can opt to purchase 100 euros in investment funds each month or you can opt for an investment plan. Via an investment plan, you automatically invest a fixed amount in a basket of different investment funds at regular intervals. See here how much the investment plans of banks yield.

With an investment fund, the entry costs are usually expressed as a percentage of the capital you invest. That fee is usually 2 to 3 percent, regardless of whether you invest 100 or 2,000 euros. An investment fund therefore seems cheaper than individual shares for small investment amounts. Nevertheless, it is best to keep in mind that with investment funds you also pay ongoing costs, which eat 1 to 2 percent of your return annually. Those who invest in the longer term may therefore see their costs rise higher. View here which investment funds banks offer.

ETFs

You can also invest monthly via an ETF (exchange-traded fund), also known as an index tracker. You then invest in a passively managed investment fund that follows an index as closely as possible. The brokerage fee for trackers follows the same pattern as for individual stocks. At Bolero, you immediately pay 7.50 euros for orders up to 2,500 euros. Ongoing charges are typically 0.25 to 0.50 percent. It is therefore again a question of looking at the long-term picture. Read more about the pros and cons of ETFs here.

Finally, risks are associated with every form of investment. No matter how beautiful the prospectus may look, capital loss can never be ruled out. So always choose an investment product that matches the risks you wish to take yourself.