Fund-based saving

There is an old stock market adage that says that share prices rise in stable bull markets despite negative news and various risk factors. So the stock markets climb along a wall of fears and worries. The year 2024 is likely to be seen as yet another example of this phenomenon.

Is success guaranteed when you invest in “high-tech” equities? One might be tempted to think so, since high tech is the sector with the strongest long-term growth in turnover and profits. But it’s just not that simple.

Surprisingly few investors are aware that dividends make up a very significant share of the total long-term return of equity investments, especially if they are regularly reinvested. Depending on the market and period, the figure has been between 30% and 50% in the past, and even as high as 70% in some decades!

In recent years, the US dollar has gradually appreciated against the euro with comparatively minor fluctuations. This has meant positive returns from exchange rate gains for euro-based investors. Is this dollar strength now coming to an end or is now still a good time to enter the market?

The global energy transition and the ever-increasing demand for energy are among the defining megatrends of this century. It makes sense to invest in these topics of the future. But as is so often the case in life, the "how" is at least as important as the "what".

More and more investors are looking for responsible investment opportunities that also offer plannable, regular returns. Raiffeisen Capital Management already offers one fund with quarterly disbursement. We are now expanding the product range to include a new mixed fund with more dynamic orientation and higher regular returns.

There are various instruments available for investing in the capital market. When it comes to investment funds, a distinction is often made between ETFs, which are passive funds that are traded on equity exchanges, and actively managed funds. These are two investment styles that can each make sense to use in different situations, depending on the investment objectives and customer needs.

This year, there has been no talk of a summer lull in the financial markets. At the beginning of August, equity markets, particularly in Japan and the USA, experienced a significant decline, although it lasted only a few days. This was triggered by weaker US economic data and a nearly simultaneous slight interest rate hike in Japan. However, a strong recovery followed immediately. After a brief pause, this recovery has continued into September.