In this article we show how, with the right knowledge about equity funds + ETFs (stock indices) you have a very high chance of building substantial wealth.
With the blog post "How to get rich with €50 per month?" we demonstrated the long-term effects of compound interest.
There is a very significant difference after several years whether equity funds or ETFs only achieve 6% or 16% in average annual performance.
How high have the performances of important stock indices been over the past 5 + 10 years (as of 30.7.2020)?
| Stock index | 5 years | 10 years |
| Dax | 10 % | 101 % |
| MDAX | 31 % | 219 % |
| SDAX | 34 % | 189 % |
| TecDAX | 70 % | 291 % |
| MSCI World Information Technology | 165 % | 446 % |
| NASDAQ 100 | 133 % | 473 % |
Goal: invest money for retirement, ... with high returns at an acceptable risk. For some investors, ETFs or funds that do not achieve at least 50 % in value increase after 5 years are uninteresting.
According to your own risk assessment, you can invest your sum of money (one-off or monthly) in various equity funds and ETFs.
The best equity funds and ETFs of the last 5 years, which for example track the above stock indices, can be found in the next article on investing (retirement provision).
Recommendation: An inexpensive paid but really very good and clear aid is offered by Stiftung Warentest with their "risk-return diagram". You should subscribe to the paid access for at least 1 month. Cancel it when you no longer need it. The prices on Stiftung Warentest may be 1–3 months old. Reason: several items are checked, therefore up-to-date prices may not be available every month. Please search the internet for current prices.
Note: Past increases in value are no guarantee of future performance. We receive no commission/compensation from the companies mentioned here.