What is true about investing?

Common investment misconceptions

With today’s low savings interest rates, more and more people are getting interested in investing. This is because expected investment returns generally far exceed the interest you would earn on money kept in a savings account with a bank. And yet many people are unsure about investing. Are you? Perhaps you have a distorted idea of what investing entails. Keep reading for more about the 6 biggest misconceptions.

The 6 most common misconceptions about investing

  1. 'Investing is complicated, you need a lot of specialist knowledge'

    It is basically just like cooking: you can make it as complicated as you want, but a simple recipe can be just as successful. This is why ABN AMRO offers different investment options. If you have little to no experience investing your money, our Guided Investing service will help you choose a Profile Fund based on your needs, goals and preferences. Our experienced fund managers will subsequently try to get you the highest possible returns from your chosen fund. More information Take a look at our investment options.

  2. 'You cannot invest small amounts'

    You really don’t need a hefty bank account to try your hand at investing. Investments start from as little as €50. And if you are happy with how it’s going, you could set up a standing order to invest a (small) fixed amount every month through our standing investment option. Whatever amount you decide to invest, it is important that you set realistic goals and do not invest savings or other money that you cannot afford to lose. This way, you will minimise the chance of disappointments.

  3. 'Investing is time consuming'

    There are plenty of people who stay on top of the latest stock market news every day and trade shares all day long. If that’s not really your thing or you simply don’t have the time for it, our Guided Investing service will probably be a better fit for you. With Guided Investing, you choose a Profile Fund that is very easy to invest in and track online. You can change your investment whenever you want. If you have more than €50,000 to invest, you could also choose our Asset Management service.

  4. 'If I invest my money, it will not be readily available any more'

    When you invest, it is important to be patient and not sell too quickly. Investing always involves ups and downs. When you invest for the long term, chances are you will achieve good returns. This does not mean, however, that you cannot sell your investment in the meantime. In fact, in your personal online environment, you can buy and trade investment products whenever you want. You can offer shares and bonds for sale during stock market trading hours. And selling Profile Funds takes a maximum of 4 trading days. The proceeds from your sale will be paid into your 'Beleggers Spaarrekening account'.

  5. 'I could instantly lose all my money'

    While there aren’t any guarantees when investing, you can still have a great influence on the level of risk involved by designing the right mix of investments. There are high-risk investment products (such as shares), low-risk investment products (such as bonds), and medium-risk investment products. The more aggressive your portfolio, the bigger the chance of your investment gaining in value, or losing value unfortunately. With ABN AMRO’s Guided Investing service, you first set your target return, investment amount and term. And you then choose one of the 6 Profile Funds that best fits your investment parameters.

  6. 'Always invest with the bank with the lowest fees'

    While low fees are indeed important, so are quality, reliability and transparency. How stable is the party with which you intend to invest? What would happen if this company were to hit bad times? ABN AMRO is licensed by De Nederlandsche Bank, i.e. the Dutch Central Bank. This means that, if you need to, you can rely on the deposit insurance scheme and investor compensation scheme. On top of that, research by Beleggingsmatch and IEX shows that our Profile Funds achieved the best average returns between 2008 and 2017.

 

Find out more about investment risks

There are risks associated with investing. You could lose all or part of your initial investment. Read more about the main investment risks and how it works.

Other useful info

Investing with less risk?

Is it possible to invest without running the risk of your investment losing value? We have to disappoint you, because there is unfortunately no such thing as 100% risk-free investing. Investing always involves risks. Even so, there are ways to reduce investment risks. But what are they? 

Investment options in the Netherlands

Find out if investing could be right for you, what to bear in mind, and how to get started, guided by a convenient rundown of important information about investment options in the Netherlands.

What type of investments suits you?

Would you like to know whether investing is also suitable for you? And which type of investment may be suitable for you? Discover this with our decision helper.