Helma Sick: Tips on funds and investment
Rich with China shares?
I am 62 and have 20,000 euros to the plant free. Having previously invested in the safe area, I would now like to buy a China fund. You can not go wrong, right?
Chinese stocks were the hit in 2006. Meanwhile, however, critical voices are increasing. One of China's most influential economic politicians recently warned of stock market overheating. He finds the Chinese stock market bloated and believes that all investors should be aware of the risks. In his opinion, only one out of three listed companies is a good investment according to international standards. Also keep in mind that the Chinese stock market is comparatively small. First there are limited companies only relatively short time, and not in large numbers. A fund with Chinese equities can therefore not offer as wide a spread as, for example, a European fund. If you really want a riskier investment, then please only as an admixture. And if it's an Asian fund, I'd rather recommend funds that invest in different countries. The economy is also buzzing in other Asian countries.
woman issue 5/2007
Real estate funds as a pension?
I have received from my bank a prospectus on a closed real estate fund, which states that this investment is very well suited for retirement. I always thought that these are tax-saving models, which are often quite risky. What do you mean?
The tax savings funds you are addressing no longer exist because tax benefits were almost completely eliminated last year. The models now on the market are closed-end funds that are all about return. They participate directly in one or more commercial real estate, for example office buildings that are rented out on a long-term basis. As a rule, they receive a distribution once a year, which is largely tax-free. Closed-end real estate funds have terms of ten years or more. If it is a solid and experienced issuing house and a property with tenants of good credit standing, you can count on a stable additional income here. Another advantage: closed-end real estate funds are not as dependent on stock market sentiment as other investments. For this reason, first-class participation can certainly be a viable building block for retirement provision.
ChroniquesDuVasteMonde woman issue 2/2007
What is "Rating" and "Ranking"?
In the business section of the newspaper I read again and again of "rating" and "ranking" for certain investments. Is that the same thing? And what exactly is meant by that?
At the "Rating" International agencies such as Moody's or Standard & Poor's deal, among other things, with the creditworthiness of governments or large corporations - and thus with the risk involved in buying such bonds. The highest positive rating is AAA, the lowest one at C. BB, for example, means that the risk is already significant. German government bonds are rated AAA, but the Dominican Republic only manages up to one CC (which in the worst case means total loss of money).
"Ranking" (The English term for racing lists) means something quite different: This classification has become common practice with funds. They are then sorted according to the performance over a given period of time (one year, three years, etc.). Unfortunately, many investors now focus exclusively on such lists. However, they are only suitable for a first overview. For example, because they do not say anything about the risk of good performance. And: The chosen period may distort the long-term results of a fund.
from ChroniquesDuVasteMonde 15/05
How many shares in the custody account?
For the securities deposit, there is supposedly the rule of thumb: "100 minus age equal to maximum share". Is that correct? Then with me (45) so at the most 55 per cent shares or stock funds should be in the depot. But honestly, I do not care about that anyway.
You do not have to. This handy rule of thumb does not bring much. It can at best be a clue but no concrete recommendation. Decisive are always the personal background, the savings target (eg investment period) and the risk appetite. For example, suppose you want to buy a property in five or six years. Then you should not invest in stocks or stock funds at all. Much more advisable are low-fluctuation investments such as Federal Treasury notes or a bank savings plan. Then the money is available without loss, if you need it.
ChroniquesDuVasteMonde Issue 21/2005
Problem-free investment for 50,000 euros?
I (49) raised three children, so I was never employed and later did not receive my own pension. Now my father has given me 50,000 euros, which I should invest.But the conversation at the bank has totally confused me. I do not know what funds are and fixed income securities and all that. Do you have any advice for me?
I would park half of the money on a time deposit account; This is a savings account where the money is fixed for example four weeks. If you do not cancel it, the system automatically renews for another month. So you always have a reserve if you need money at short notice. The other 25,000 euros you should invest in my opinion in federal treasury notes; These are completely risk-free federal securities with a term of six years. During this time, the interest rate increases from 1.75 percent in the first to 4 percent in the sixth year. For a year, the money is initially fixed; then you can resell the Federal Treasury notes at any time, but each month only worth a total of 5,000 euros. With these risk-free and manageable investments you drive for the time being best. As soon as you are able to, you should learn more about investments. For example, in the business section of the newspaper, in books for beginners or through folk high school courses.
