Anyone wishing to increase their holdings through traditional savings solutions such as the savings account now faces major challenges. Interest rates are at historically low levels around the world. The downward trend already started in the 1980s. According to calculations by the Swiss National Bank, the average interest rate on savings paid by banks for private customers was 0.04% at the end of 2019.
A normalization of the level of interest rates does not seem to be on the agenda. While the money is in the savings account, there is no return and on the other hand there is a threat of loss in value due to inflation. With an average of 0.5 to 1%, the inflation rate is relatively moderate. However, if your savings do not grow accordingly, the purchasing power of money may decline in the long run.
Investment funds: take advantage of return opportunities
Investors can benefit from smart investments even in a low interest rate environment. So, if you want to plan for your retirement, buy real estate, or achieve other financial goals, you shouldn't fall into the savings account trap. Investment funds are an interesting alternative. Saving in funds follows a similar principle to saving in an account. Conversely, savings contributions are paid into funds; investors can thus hope for an increase in value. Investments in securities open up opportunities for returns and can therefore contribute to a continued accumulation of assets despite inflation, while the risk is generally manageable.
Average cost effect: profit from price fluctuations
It is not necessary to invest a large sum: even small contributions which are invested in funds at regular intervals (for example every month), have paid off in the long term in the past. So you can also reach your goal in stages. When saving with funds, a medium to long-term investment horizon is particularly suitable. Indeed, the risks can be compensated by a long-term and progressive payment. This also allows the effect of the average cost to be deployed optimally, profitability being ensured by the regular saving of a fixed sum. Thus, more units are automatically purchased when prices fall and less when prices rise. As an investor, you can thus obtain a more favorable average price for your long-term fund units. In addition, the return on a fund savings plan may be higher than that on a single investment.
Stay flexible with investment funds
Diversity plays an important role here: unlike a normal share purchase, broad diversification reduces overall risk. You can also benefit from the effect of compound interest. This means that the income goes straight back to the funds where it can continue to work for you. In addition, investment funds offer leeway: you decide which funds you want to invest in. The duration and amount of investments can also be individually adjusted.
You also have access to your goods at any time thanks to buying or selling opportunities. Investors who choose BancorpTrust investment funds therefore actively exploit the possibilities offered by the equity market. In addition to investment savings, investment funds investment are particularly suitable for long-term savings for retirement, as it is possible to exploit the potential for returns and take advantage of tax advantages. The investment fund account combines fund-based asset management with the benefits of an account.
Are you interested in establishing your own Investment banking firm?
Have you have been thinking about establishing your own Investment Bank & Capital Trust or Licensed Investment Fund without a lot of bureaucratic “red tape”, with electronic payment capabilities– and for a budget you can aﬀord?
You have done your research across the world, compared service providers only to discover that they are either too expensive or simply not worth your time?
Rest assured, BANCORPTRUST (www.bancorptrust.com) is highly specialized in establishing Investment Banks, Offshore Banks, Investment Funds, Real Estate Funds, Credit Unions, Capital Trusts, for its clients across the world. Included is your own private label mobile banking platform, your own API, your own SWIFT code, and your own cryptocurrency trading facilities, yet without the bureaucratic "red tape"...
The companies mobile banking technology solutions enable your future investment banking clients to open a bank account from anywhere. In a matter of seconds - with seamless interaction.
The management team of BancorpTrust has been in this industry since 1990 and has a track record of successful Investment Bank establishments for over 3 decades.
For a confidential consultation on how to establish your own Investment Bank or Offshore Bank & Capital Trust, please contact: