Investments backed by VP expertise —

Goodbye interest, hello gains

Now that the US central bank has also begun to end its restrictive rate, a new cycle of interest rate cuts has started on both sides of the Atlantic. While this may come as a relief for borrowers, it will cause some annoyance to savers. Time deposits have generated attractive returns over the last two years. Traditional saving has now become less attractive, as the central banks have decided to loosen the interest rate screw further.

However, investors do not necessarily have to give up. The financial markets are offering extremely promising return opportunities for those with a long-term focus.

Why you should invest your money now

1. Counter the issue of inflation

Although inflation rates have fallen following the sharp increases seen in 2021 and 2022, there is still the considerable loss of purchasing power to contend with – it has declined by around 20% in the last five years alone in Germany and the US. To offset this loss and protect your assets, it is essential to invest your money wisely.

2. Investing gradually minimises risks

Phased entry into the market significantly reduces risk. By distributing your investments over various points in time, you avoid the risk of investing at the wrong moment. Even if you do experience losses to start with, the recovery time will be shorter, as you will not yet have invested all your capital. This strategy offers you flexibility and reduces risk.

3. Investing is better than hesitating

Investing in financial assets will generate better returns than simply leaving your cash in a savings account. And hesitating isn’t a good plan, as waiting is worse than investing. However, it is important to balance the risk and ensure that your portfolio is appropriate for your individual circumstances; it should therefore be adjusted regularly in line with your own goals, enabling you to achieve them without taking excessive risks.

The benefits of professional investment

Making investment decisions can be challenging. Which asset classes are promising and, therefore, possibilities? Are they attractive now too, or only over the long term? What weight should they have in your portfolio? And should you opt for individual assets or units in collective investment schemes? And which financial instruments specifically should be selected? Should payouts be reinvested?

If you don’t have enough time to deal with these and other questions, or simply aren’t interested in doing so, it makes sense to put your assets in professional hands. At VP Bank, teams made up of experienced specialists in strategy, business, market analysis and portfolio management are responsible for managing the assets entrusted to them on a day-to-day basis.