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How to actually invest in an index fund?
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I'd like to invest in an index fund. Let's say I am able to read and understand the various documents that each fund provides, so that I can make an informed choice of what I am doing. Let's say that I am planning to invest some money that I know I can afford to lose.
The question is, where do I actually put my money? For example, in a bank savings account that gives you interest, you put the money in that account, and you are done. It is as simple as a bank transfer.
My bank offers to manage investments, and it also gives access to funds. However, I assume that will cost me a higher fee/lower return that if I was able to invest the money myself. Is this the only way?
I am based in Europe.
investing index-fund
asked 4 hours ago
Svalorzen
24934
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up vote
4
down vote
favorite
I'd like to invest in an index fund. Let's say I am able to read and understand the various documents that each fund provides, so that I can make an informed choice of what I am doing. Let's say that I am planning to invest some money that I know I can afford to lose.
The question is, where do I actually put my money? For example, in a bank savings account that gives you interest, you put the money in that account, and you are done. It is as simple as a bank transfer.
My bank offers to manage investments, and it also gives access to funds. However, I assume that will cost me a higher fee/lower return that if I was able to invest the money myself. Is this the only way?
I am based in Europe.
investing index-fund
asked 4 hours ago
Svalorzen
24934
@BobBaerker , see The intent and purpose of Comments . We are trying to avoid "answers in comments" as well as comments that don't stick the the intent described there.
– JoeTaxpayer♦
2 hours ago
add a comment |Â
up vote
4
down vote
favorite
up vote
4
down vote
favorite
I'd like to invest in an index fund. Let's say I am able to read and understand the various documents that each fund provides, so that I can make an informed choice of what I am doing. Let's say that I am planning to invest some money that I know I can afford to lose.
The question is, where do I actually put my money? For example, in a bank savings account that gives you interest, you put the money in that account, and you are done. It is as simple as a bank transfer.
My bank offers to manage investments, and it also gives access to funds. However, I assume that will cost me a higher fee/lower return that if I was able to invest the money myself. Is this the only way?
I am based in Europe.
investing index-fund
asked 4 hours ago
Svalorzen
24934
I'd like to invest in an index fund. Let's say I am able to read and understand the various documents that each fund provides, so that I can make an informed choice of what I am doing. Let's say that I am planning to invest some money that I know I can afford to lose.
The question is, where do I actually put my money? For example, in a bank savings account that gives you interest, you put the money in that account, and you are done. It is as simple as a bank transfer.
My bank offers to manage investments, and it also gives access to funds. However, I assume that will cost me a higher fee/lower return that if I was able to invest the money myself. Is this the only way?
I am based in Europe.
investing index-fund
investing index-fund
asked 4 hours ago
Svalorzen
24934
asked 4 hours ago
Svalorzen
24934
asked 4 hours ago
Svalorzen
24934
asked 4 hours ago
Svalorzen
24934
asked 4 hours ago
Svalorzen
24934
24934
@BobBaerker , see The intent and purpose of Comments . We are trying to avoid "answers in comments" as well as comments that don't stick the the intent described there.
– JoeTaxpayer♦
2 hours ago
add a comment |Â
@BobBaerker , see The intent and purpose of Comments . We are trying to avoid "answers in comments" as well as comments that don't stick the the intent described there.
– JoeTaxpayer♦
2 hours ago
@BobBaerker , see The intent and purpose of Comments . We are trying to avoid "answers in comments" as well as comments that don't stick the the intent described there.
– JoeTaxpayer♦
2 hours ago
@BobBaerker , see The intent and purpose of Comments . We are trying to avoid "answers in comments" as well as comments that don't stick the the intent described there.
– JoeTaxpayer♦
2 hours ago
add a comment |Â
2 Answers
2
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oldest
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up vote
3
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Usually, I go with a broker (share trader) that deals specifically with buying and selling securities. Looking at this page gives a list of possible brokers in the EU and elsewhere.
The other way to go is to choose your index fund and invest directly with the company that operates it. For example, I believe Vanguard offers this in the UK.
Opening an account with either type usually involves opening two accounts: a brokerage account (to hold your investments) and a bank account (to hold your cash). Once you fund your cash account with enough money, you will then be able to purchase any security (including index funds) that you have enough money for.
Be aware of things like: inactivity fees, brokerage fees, and the costs of owning the index fund itself. They all eat into your gains.
answered 4 hours ago
Peter K.
3,03111729
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up vote
3
down vote
In Germany many brokers offer savings plans for free, I guess this applies also in other countries. When you want to invest small sums, you can buy your portfolio with one or more monthly savings plans which invest a fixed high amount each month, say 500€.
Smaller savings plans are IMHO a good way to start with the stock market, as an alternative if you don't want to invest your savings at once.
If you look to invest a higher amount, compare what the brokers ask for - check for free buys or low fixed fees.
answered 4 hours ago
chris
674
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chris is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
3
down vote
Usually, I go with a broker (share trader) that deals specifically with buying and selling securities. Looking at this page gives a list of possible brokers in the EU and elsewhere.
The other way to go is to choose your index fund and invest directly with the company that operates it. For example, I believe Vanguard offers this in the UK.
Opening an account with either type usually involves opening two accounts: a brokerage account (to hold your investments) and a bank account (to hold your cash). Once you fund your cash account with enough money, you will then be able to purchase any security (including index funds) that you have enough money for.
Be aware of things like: inactivity fees, brokerage fees, and the costs of owning the index fund itself. They all eat into your gains.
answered 4 hours ago
Peter K.
3,03111729
add a comment |Â
up vote
3
down vote
Usually, I go with a broker (share trader) that deals specifically with buying and selling securities. Looking at this page gives a list of possible brokers in the EU and elsewhere.
The other way to go is to choose your index fund and invest directly with the company that operates it. For example, I believe Vanguard offers this in the UK.
Opening an account with either type usually involves opening two accounts: a brokerage account (to hold your investments) and a bank account (to hold your cash). Once you fund your cash account with enough money, you will then be able to purchase any security (including index funds) that you have enough money for.
Be aware of things like: inactivity fees, brokerage fees, and the costs of owning the index fund itself. They all eat into your gains.
answered 4 hours ago
Peter K.
3,03111729
add a comment |Â
up vote
3
down vote
up vote
3
down vote
Usually, I go with a broker (share trader) that deals specifically with buying and selling securities. Looking at this page gives a list of possible brokers in the EU and elsewhere.
The other way to go is to choose your index fund and invest directly with the company that operates it. For example, I believe Vanguard offers this in the UK.
Opening an account with either type usually involves opening two accounts: a brokerage account (to hold your investments) and a bank account (to hold your cash). Once you fund your cash account with enough money, you will then be able to purchase any security (including index funds) that you have enough money for.
Be aware of things like: inactivity fees, brokerage fees, and the costs of owning the index fund itself. They all eat into your gains.
answered 4 hours ago
Peter K.
3,03111729
Usually, I go with a broker (share trader) that deals specifically with buying and selling securities. Looking at this page gives a list of possible brokers in the EU and elsewhere.
The other way to go is to choose your index fund and invest directly with the company that operates it. For example, I believe Vanguard offers this in the UK.
Opening an account with either type usually involves opening two accounts: a brokerage account (to hold your investments) and a bank account (to hold your cash). Once you fund your cash account with enough money, you will then be able to purchase any security (including index funds) that you have enough money for.
Be aware of things like: inactivity fees, brokerage fees, and the costs of owning the index fund itself. They all eat into your gains.
answered 4 hours ago
Peter K.
3,03111729
edited 4 hours ago
answered 4 hours ago
Peter K.
3,03111729
answered 4 hours ago
Peter K.
3,03111729
answered 4 hours ago
Peter K.
3,03111729
3,03111729
add a comment |Â
add a comment |Â
up vote
3
down vote
In Germany many brokers offer savings plans for free, I guess this applies also in other countries. When you want to invest small sums, you can buy your portfolio with one or more monthly savings plans which invest a fixed high amount each month, say 500€.
Smaller savings plans are IMHO a good way to start with the stock market, as an alternative if you don't want to invest your savings at once.
If you look to invest a higher amount, compare what the brokers ask for - check for free buys or low fixed fees.
answered 4 hours ago
chris
674
New contributor
chris is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |Â
up vote
3
down vote
In Germany many brokers offer savings plans for free, I guess this applies also in other countries. When you want to invest small sums, you can buy your portfolio with one or more monthly savings plans which invest a fixed high amount each month, say 500€.
Smaller savings plans are IMHO a good way to start with the stock market, as an alternative if you don't want to invest your savings at once.
If you look to invest a higher amount, compare what the brokers ask for - check for free buys or low fixed fees.
answered 4 hours ago
chris
674
New contributor
chris is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |Â
up vote
3
down vote
up vote
3
down vote
In Germany many brokers offer savings plans for free, I guess this applies also in other countries. When you want to invest small sums, you can buy your portfolio with one or more monthly savings plans which invest a fixed high amount each month, say 500€.
Smaller savings plans are IMHO a good way to start with the stock market, as an alternative if you don't want to invest your savings at once.
If you look to invest a higher amount, compare what the brokers ask for - check for free buys or low fixed fees.
answered 4 hours ago
chris
674
New contributor
chris is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
In Germany many brokers offer savings plans for free, I guess this applies also in other countries. When you want to invest small sums, you can buy your portfolio with one or more monthly savings plans which invest a fixed high amount each month, say 500€.
Smaller savings plans are IMHO a good way to start with the stock market, as an alternative if you don't want to invest your savings at once.
If you look to invest a higher amount, compare what the brokers ask for - check for free buys or low fixed fees.
answered 4 hours ago
chris
674
New contributor
chris is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
edited 2 hours ago
answered 4 hours ago
chris
674
New contributor
chris is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
answered 4 hours ago
chris
674
answered 4 hours ago
chris
674
674
New contributor
chris is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
chris is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
chris is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |Â
add a comment |Â
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@BobBaerker , see The intent and purpose of Comments . We are trying to avoid "answers in comments" as well as comments that don't stick the the intent described there.
– JoeTaxpayer♦
2 hours ago