Investment strategy and risk appetite
If you are planning to set up a fund savings plan with ETFs, then you should already have some experience on the stock exchange. As already mentioned, ETF savers have to assume the role of fund managers and should know what distinguishes an ETF on a very broad index such as the MSCI World or the Stoxx Europe 600 from an MDAX ETF.
This goes hand in hand with the question of your personal risk appetite, because: If your investment strategy is long-term (investment horizon over 20 years) and your portfolio as a whole is broadly based, then you can act significantly more riskily with your fund savings plan. In this case, use your ETF on more volatile indices, such as the MDAX or emerging market indices.
If, on the other hand, you are a less opportunity-oriented investor, your investment strategy is shorter-term (10 years and shorter) and your portfolio is not otherwise particularly broad, then you might want to set up a fund savings plan with bond ETFs or other conservative ETFs.
You can save yourself all of these thoughts when saving funds with active investment funds, so as investors with less experience on the stock exchange, you should probably opt for a savings plan with actively managed investment funds. These are already widely spread and will be adjusted by the fund manager depending on the market situation. So all you have to do is choose a low-risk or a high-potential fund – the way an asset manager sets up his fund can be found in the product information sheet. Always keep in mind that an active fund should fit your investment strategy and should complement your portfolio.
Important: Regardless of whether you opt for passive ETFs or actively managed funds, make sure that the products are eligible for savings plans.
