Do you want to grow your money over the long term, without having to invest large amounts? With BUX, you can start investing with as little as €5 and set up a recurring monthly Investment Plan to automate your investment strategy. But how do you begin to decide which stocks or ETFs to include in your plan? In this guide, we’ll give you some ideas.
The first rule of investing: diversify
There’s an old saying in the investing world: “Never put all your eggs in one basket.”
Diversification is a strategy whereby you invest in many different assets from several different sectors. This allows you to spread your risk, so if one asset or sector falls it’s balanced out with other investments.
You can diversify in different ways:
- With different assets: For example, you can invest in a mix of stocks and ETFs.
- With different sectors: In the event of a disaster for one industry (tourism, pharmaceuticals, fashion etc.) you can count on your assets from other sectors to offset your losses.
- With different geographic locations: For example, emerging markets and developed markets.
ETFs are often referred to as the kings of diversification because they allow you to invest in hundreds of stocks through a single product.
Learn more about diversification here.
Get inspired: 3 examples
You could also choose to construct your Investment Plan around certain themes. We’ve selected three examples of thematic portfolios to help you create a plan that reflects you and your goals.
The Dividend Investment Plan can give you exposure to companies and ETFs with a track record of paying dividends.
- EU Dividend ETF (iShares)
- All World Dividend ETF (Vanguard)
- Europe Dividend ETF (SPDR)
- Merck & Co
The Tech Investment Plan if you want to invest in the future of cloud technology, AI, cyber security and innovation.
- Nasdaq 100 Index ETF (iShares)
- Cybersecurity ETF (L&G)
- Cybersecurity and Data Privacy ETF (Rize)
- Meta Platforms
The Sustainable Investment Plan with companies that have a high ESG (environmental, social and governance) score.
- Europe socially responsible ETF (Lyxor)
- All World Socially Responsible ETF (Lyxor)
- Beyond Meat
Test your knowledge
Which of the following statements is false?
Ready to start investing on a regular basis? You can customise your plan with fractions of stocks and ETFs, then we’ll automate it, to help maximise your returns. Learn more about the Investment Plan.