Do you want to grow your money over the long term, without having to invest large amounts? Then we have a solution: Investment Plans. With BUX Zero, you can start investing with as little as €10 and set up a recurring monthly 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 tips and 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 can also choose to construct your Investment Plan around certain themes. We’ve selected three examples of thematic portfolios to help you create an Investment Plan that reflects you and your goals.
The Dividend Investment Plan: this gives 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: perfect if you believe 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: this contains companies that have a high ESG (environmental, social and governance) score. This model could be right for you if you share the values of ‘sustainability’ and believe in a green future.
- Europe socially responsible ETF (Lyxor)
- All World Socially Responsible ETF (Lyxor)
- Beyond Meat
Test your knowledge
- Fractional investing is a diversification strategy.
- Buying fractional shares is cheaper.
- You cannot have fractional assets in a BUX Investment Plan
- You can buy a fractional share of ETFs.
All views, opinions, and analyses in this article should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.
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