WITH STARTING CAPITAL

Due to the current low interest rates, ETF and stock trading options in particular have become more and more present. Company shares that have already been sold are traded on the stock market and you will participate in the price development with your shares.

Exchange-traded index funds are also a good way to passively build your wealth by investing in the economy. Not just individual stocks but several stocks are considered, which as a whole represent an index. Due to the wide spread within the prices (e.g. DAX or MSCI World), you take on less risk when investing. In general, the more stocks a fund contains, the greater its fluctuation and thus the chance of high profits or losses. In principle, however, these options are safe investments that guarantee you a passive source of income over a longer period of time.

Both types can pay you dividends as an additional source of income. Dividends are regular distributions of profits to investors in stocks, ETFs and bonds. Depending on the company and type of investment, the time interval and the amount of profit distribution vary.

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While returns of up to 20% per year are possible for individual stocks, the average for ETFs is 4%. As already mentioned in the introduction, the guiding principle always applies:

The higher the expected return, the higher the chance of high profits and the risk associated with the investment. Please note the Risk information from the respective providers.