No, investment does not only involve purchasing real estate. A one-click method allows you to grow your money, without having to monitor your spending on a daily basis. Advice from Louise Girard, market analyst at XTB France.
Investing, many think about it, few actually take action. Between the fear of making a mistake, the idea that you have to be an expert and the wait for the right moment, the project often remains on hold. However, according to Louise Girard, market analyst at XTB France, there is a concrete, accessible method that is much simpler to apply than one might imagine. Indeed, the first obstacle is often timing. Many wait, then hesitate. Others see market prices rising and think it’s too late. Result: nothing happens. Louise Girard clearly reminds us, trying to “time the market”that is to say enter at the best time, remains “a particularly complex exercise, including for professionals”. Clearly, even those whose job it is do not master this exercise perfectly.
His advice therefore consists of getting away from this logic. According to her, it is better to install a regular framework rather than trying to guess the next market movement. This is the whole principle of Dollar Cost Averaging (DCA), or programmed investment: placing the same amount at fixed intervals on the same support, rather than trying to buy at the appropriate time. How should you proceed? First of all, it is recommended to choose an investment envelope, such as a PEA (Stock Savings Plan) or a securities account. “The most important thing is to choose a product aligned with your objectives”she specifies. The PEA offers an advantageous tax framework after several years of holding, but it is more regulated on eligible assets. The securities account is more flexible and allows access to a wider investment universe.
Then, it is important to select an establishment: traditional bank, online bank or specialized platform. Traditional banks often rely on support, online banks on reduced fees, and platforms on tools dedicated to investment. The offer has also greatly expanded in recent years, with more fluid account openings and competitive rates.
Next comes the choice of placement. For a beginner, Louise Girard believes that “ETFs are among the most accessible financial instruments”. ETFs (Exchange Traded Funds) are exchange-traded funds that combine numerous securities into a single product. They replicate the performance of a stock market index, such as large French companies (CAC 40), global companies (MSCI World), American stocks (S&P 500) or even government or corporate bonds. Concretely, buying an ETF allows you to position yourself in several dozen, sometimes several hundred companies in a single transaction. This avoids depending on a single value and greatly simplifies getting started.
Another central question: how much to invest each month? Here again, the expert breaks a preconceived idea. “There is no universal minimum amount”she explains. Some platforms allow you to start from 50 euros per month, sometimes less. The real issue is not to aim high from the start, but to choose an amount compatible with your financial reality. “It is better to start with a modest amount, but sustainable over time, rather than aiming too high and having to interrupt your payments.”
Once the system is launched, should the markets be monitored every day? No way. The interest of an automated framework is precisely to “limit impulsive decisions in the face of short-term stock market variations”. There is therefore no need to change course with each economic news. Same scenario when the markets fall. Many beginners have the reflex to stop or wait. Louise Girard defends the opposite: “When an investment is planned, it is appropriate to maintain payments, even in the event of a market decline.” These periods allow you to buy at lower levels and gradually smooth out the entry price.
In terms of duration, you also need to adjust your expectations. “A 5-year horizon constitutes a first relevant benchmark”underlines the analyst. Over periods of eight to ten years, the method takes on even more meaning, because it allows time for capital to build despite phases of volatility. Louise Girard concludes: “For someone who wants to start this month, I recommend setting up an investing routine, even with a modest amount, and sticking to it.”
