Investing for Beginners: Investing in funds
Investing for Beginners
Last time, we shared more information about real estate in our “Investing for Beginners” series. It was all about the types of real estate and why people decide to invest in it.
You can read the entire article here.
Today, we will focus on investing in funds: what types of funds are there, and how can you profit with them?
Investing in funds
Besides investing in shares in bonds, investing in funds is one of the most popular and common forms of investing. While when investing in shares or bonds you invest in one company, when investing in funds, you invest in several companies within an investment fund.
You can see a mutual investment fund as a basket, containing different types of stocks and bonds from several companies. As you’re investing in multiple companies, you automatically spread your risk. As you might remember: a smart thing to do and the reason that investing in funds is so popular.
Types of investment funds
We generally distinguish three types of investment funds: equity funds, bond funds and mixed funds.
As the term suggests, an equity fund consists of shares of listed companies. For example, you can choose to join a fund with only national companies, or maybe you’d rather go for a fund filled with sustainable companies. You decide what suits your preference!
Once again, the term pretty much indicates what a bond fund is: a collection of corporate and government bonds. As we mentioned in the article about investing in bonds, this form of investing is seen as one with limited risk. You can imagine that investing in a bond fund comes with even lower risks.
And then there are the mixed funds (do we need to mention that the term already suggests what it is?): a mixed fund can contain all kinds of investment forms. Stocks and bonds, or a mixed fund supplemented with real estate and currencies.
The BOTS app and funds
The BOTS app currently focuses on investing in cryptocurrency (more trading options will come soon!): but we cut out the middle man. We’ve reinvented automated trading and put it out there for anyone to profit from. The BOTS app uses bots that do all the work for you. All you have to do is pick a bot, invest the funds, and be patient!
But how can you trust these bots? The bots in the BOTS app are developed by specialized developers and work through algorithms, artificial intelligence and machine learning. As a result, there is no more need for a (digital) fund manager. This means that you don’t have to pay for the costs of one, either.
The return that a bot achieves is significantly higher than the returns that a human might achieve. Why? A bot doesn’t eat, sleep, take pee breaks or gets stressed out when the market dips. This means that a bot can respond to changes in your crypto fund right away: no matter the hour.
And there you have it, in a nutshell: how we made investing with higher returns available for everyone. All you need to get started is 2 minutes and €5.
Ready to get started?
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.