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Investing in a nutshell: you buy investments that you think will increase in value in the future. If you sell the investments when they have increased in value, you will receive more money than you paid when you bought them. It is also possible that the investments fall in value. If you sell them then, you will make a loss. The difference between buying and selling is your gross return. There are also costs associated with investing. Take the gross return, subtract the costs and what you are left with is your net return. Do you invest in shares? Then you may receive a dividend. That is the portion of the profit that a company pays to its shareholders. Dividends are usually paid annually.

You can increase your wealth by saving or investing. Saving is secure because you earn interest on your money. Investing is more uncertain because stock prices fall and rise. Do you not need your money for a while and are you willing to take a risk? In that case, investing may provide a higher return than saving in the longer term.

You should only invest with money you can miss and above your buffer for unforeseen expenses. Investing can be interesting, but it is not without risk. You may lose (a part of) your investment. It is good to be aware of this. We recommend that you only invest in investment products that match your knowledge and experience. For example, if you opt for Guided Investing, you make your own choices and therefore determine your own risk limits. Want the chance to earn higher returns? If so, it’s wise to invest your money for a longer period.

Do you already have a goal in mind? Then first determine how far in the future you want to achieve that goal. This is useful because sometimes saving is more effective than investing. For example, if you want to have a certain amount within 2 years. Do you have a long-term goal? Then investing might be a better option.

Want to know if investing is something for you? Answer 5 questions to find out which form of investing suits you.