Average cost-effect increases yield expectations many investors wait with fluctuating rates on an auspicious date for entry into stock investments. But to make it out, is mostly luck. The experts from the VZ VermogensZentrum advise therefore to a different strategy: it is their view better to over to purchase the same securities at regular intervals over a period of time. Because in the ups and downs of the courses, the investor benefits from the average cost-effect (cost-average-effect). So he gets especially many shares at low rates for a certain amount of money. There are fewer shares at high rates. At low rates, you get more, at high rates according to fewer shares for the sum of X.
For example, the investor invested 1,000 euros twelve times per month into a Fund. First, the price of the Fund is 150 euros per share. A month later he is 200 euros. After another month, there are only 100 euro, then 200 euro. So of course only at 100 euro, the investor will receive in months in which stands for 1,000 euros ten shares. In months where the price 200 euro stands, there are five shares.
Total acquires 90 shares of investors in 12 months and 12,000 euros invested. The price of the Fund is 150 euros, after the end of the year the deposit with 90 shares has a value of 13,500 euros. Thus, the yield is 12.5 percent. The investors at the beginning of the investment in one fell swoop for 12,000 euros bought fund shares, he would have bought 80 shares for 150 euros each and achieved no return after a year.