How investment plans work
How investment plans work
Why use an investment plan instead of choosing funds yourself?
For many people, investing feels like a gamble—choosing the right funds, staying informed about the market and making timely decisions can be overwhelming. An investment plan simplifies this. You don’t need to be an expert or spend hours researching, as MeDirect has already done the preparatory work for you.
Investment plans help you avoid common investing mistakes like reacting emotionally or blindly following trends.
How does an investment plan work in practice?
Our team builds investment plans made up of carefully selected mutual funds.
When you invest:
- – You choose an investment plan that suits you best.
- – Your money is automatically allocated across the funds within that plan.
- – You can start investing from €100, add monthly contributions from €25, and add or withdraw money whenever you want.
- The investment plan’s composition remains stable and transparent—without automatic changes.
What happens after you invest?
Once you’ve chosen your investment plan, your money is automatically allocated across the underlying funds, according to the chosen strategy. These funds may comprise stocks, bonds or mixed funds, depending on your choice. During the plan selection process, you see clearly what the funds invest in and the spread between stocks and bonds.
After that, you don’t need to actively manage anything. Your investment follows a clear structure, while you decide how much, when and how to invest.
Benefits of an investment plan
Why not just invest yourself or use a savings account?
While saving money in a traditional savings account is safer, you often lose purchasing power through inflation. On the other hand, investing by yourself can be confusing and time-consuming.
An investment plan offers a smart solution in between these two options: built by MeDirect, nicely diversified and accessible and flexible for everyday investors.
How does an investment plan benefit you?
- Accessibility: Start investing from just €100, with monthly contributions from €25.
- Flexibility: Add or withdraw funds whenever you like. It’s also possible to sell everything at any moment.
- Diversification: Your money is spread across different asset classes and markets.
- Investing without pressure: You stay in full control of your investments.
What makes this a smart way to invest?
Investment plans are an ideal entry point into the world of investing. You choose your investment plan, decide how much and when you invest, and always stay in control.
Risks and Considerations
Why is it important to understand the risks?
Every investment involves risk. While investment plans are designed to be balanced and diversified, markets can always fluctuate. If you understand the risks, you can make better decisions that match your goals and comfort level.
By understanding the risks, you can invest with more confidence—even during periods of volatility.
How can you deal with risk sensibly?
- Think long-term: Investments can fluctuate in the short term but often offer opportunities over the long term.
- Invest what fits your situation: Never invest money you might need in the short term.
- Review your situation regularly: Your goals may change over the course of time.
What risks should you be aware of?
- Market risk: The value of your investment can go down as well as up.
- No guaranteed returns: Unlike a savings account, returns are variable.
- Emotional reactions: Panic-selling often leads to losses.
- Currency or regional risk: Some funds are exposed to international markets.
Investing is never without risk—but getting insight into those risks is the first step towards making smart, long-term decisions.