How Do I Start Investing?

How Do I Start Investing?

Getting started is easier than you think! Begin with a clear plan and take small, structured steps. Good preparation helps you avoid common mistakes and sets you up for long-term success.​

Important Questions Before You Start

Before you make your first investment, you should answer key questions:

  • How much money can I invest in the long term without jeopardizing my financial security?
  • How high is my risk tolerance – and what is my position on price fluctuations?
  • What are my goals – retirement provision, asset accumulation or short-term opportunities?

These answers have a significant influence on your investment strategy and help you choose the right products.

Risk Profile and Strategy

When investing, it is crucial that your strategy aligns with your risk tolerance (your willingness to accept market fluctuations) and your risk capacity (your financial ability to bear losses). Combined with your investment horizon (the duration of the investment), these factors define your personal risk profile.

What Does This Mean for the Strategy?

Choosing the right investment strategy is the most important driver for your long-term success. Studies show that around 80% of a portfolio’s return depends solely on the strategic distribution of capital across different asset classes (asset allocation). Therefore, much more important than short-term tactical decisions or finding the “perfect” time to buy is the discipline to stick to your chosen strategy—even during turbulent market phases.

The main difference between the strategies lies in the equity ratio (stock allocation). Equities are the growth engine: They offer higher potential returns over the long term but also fluctuate more strongly in value. The higher the share of equities, the greater the risk. Consequently, a high equity allocation strictly requires appropriate risk tolerance and risk capacity, as well as a long investment horizon to ride out market fluctuations.

The following overview illustrates the most common strategies.

Avoid Mistakes

Investors often make common mistakes, such as investing without a clear strategy or blindly chasing short-term trends.

To avoid this, you should observe a few basic principles: Never put all your eggs in one basket, but instead spread your capital (diversification). Furthermore, only invest money that you can do without for the long term. Discipline is key: Do not let emotions drive you to make hasty decisions during market fluctuations. Instead, stick to your strategy and review it regularly.

E-Learning: Want to gain a deeper understanding of Financial Markets and Products?

Contact our experts. They will be happy to helpUnderstanding the financial markets is crucial for investors as it enables them to make informed investment decisions, manage risks, and optimize their returns. This e-learning provides an ideal foundation to begin with.  

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