Misconceptions about investment

idées sur l'investissement

Investing may make you a bit nervous. Have you perhaps had some bad experiences? To reassure you, we demystify some of the typical clichés about investment.

Investing is complicated

Surprisingly, investment may not be as complicated as you think. With your personal MeDirect platform, you will find the essential information on the financial instrument in which you would like to invest in just a few clicks. This information will help you take investment decisions based on your wishes.

Even easier: by choosing MeManaged, you delegate the task to us. All you have to do is fill in our questionnaire to define your investment profile, and we will take care of the rest.

You need a lot of money to invest

That’s not true. At MeDirect, you can start investing with just 100 euros. But bear in mind that it is important to keep a reserve of funds available immediately for any unexpected events. Generally, it is advisable to keep the equivalent of 3 to 6 months’ salary as a reserve.

The ideal is to invest money that you do not need in the short term. The amount you invest will depend on your objectives and the time you have to achieve them. Investing to buy a new car within five years requires a different approach than if you are investing for retirement.

Investing involves high costs

At MeDirect, you do not pay any entry, exit or custody fees when you put your money in an investment fund. That’s already a bonus! So, you only pay the costs for managing the fund, which is deducted directly by the fund manager and is included in its net asset value. MeDirect will receive a portion of the management fees.

If you opt for MeManaged discretionary portfolio management, you pay management fees so that we manage your portfolio for you.

We attribute great importance to transparency. This is why we will always inform you of all the fees associated with your investments when you place an order.

You will find the details of the fees charged by MeDirect in our guide to Tariffs & Charges.

Investing is too risky

Yes, investing involves risks. The first thing to consider is therefore the level of risk you are prepared to take. This depends on your risk appetite and risk tolerance over your investment horizon.

Everything you may need in the years to come, such as savings for emergencies, holidays or the purchase of a car, should be kept in a savings account, where your money is available at any time.  When it comes to investing, it is essential to take your time. You will have a better chance of recovering from a bear market if your investment horizon is longer.

You should also consider your degree of risk tolerance. If you can’t sleep soundly because the value of your portfolio is falling, you should probably not invest in risky products.

I can't get my money back

Even if you invested money you didn’t need in the short term, there may be cases where you suddenly have to withdraw some of it (due to an unforeseen event). To invest, it is always preferable to have a long-term vision, but generally speaking, if you need your money, you can sell your investment and recover the proceeds within a period of 7 working days.

Past performances aren’t a guarantee of future returns. MeDirect does not provide investment advice.