How ready-made funds simplify investing for beginners
Overwhelmed by stocks? Ready-made funds offer expert-managed portfolios to help grow your wealth stress-free.
4 min read
Starting your investment journey shouldn’t feel like solving a riddle. Ready-made funds offer a straightforward solution for beginners and seasoned savers alike, delivering expertly managed portfolios that help you build wealth without the hassle. Ready to learn if these funds could work for you? Let’s break it down.
The appeal of ready-made funds
Investing can feel like navigating a loud, bustling market — you’re surrounded by options, but finding a good deal can feel overwhelming. That’s where ready-made funds come in. A ready-made fund is a pre-assembled portfolio of investments curated by financial experts. These funds typically combine a mix of exchange-traded funds (ETFs) and index funds, spreading your investment across various asset classes, industries, and regions. The result? Diversification, which helps reduce risk while still giving your money room to grow.Unlike the DIY route of hand-picking individual stocks or ETFs, a ready-made fund does the heavy lifting for you. The experts behind these portfolios handle the research, selection, and ongoing monitoring of the investments. They aim to create a portfolio that aligns with different investor profiles, whether you’re a cautious saver or an investor that can stomach more risk.
Expertly curated, beginner approved
For beginners, ready-made funds offer an easy access point into the world of investing. No hours-long trawling through investment options or analyzing performance charts. Instead, experts select a well-diversified mix of investments on your behalf, spreading your money across asset types, regions, and industries. This diversification can help reduce risk and give your portfolio a better chance to weather market ups and downs.Another beginner-friendly feature is customization based on risk tolerance. Most providers offer ready-made funds tailored to various risk levels. Whether you’re a cautious investor looking for stability, a balanced investor seeking moderate growth, or a more adventurous investor ready to embrace higher risk for potentially higher returns, there’s likely a fund that matches your comfort zone. Ready-made funds are also ideal for people who don’t have the time or the desire to micromanage their investments. There’s no need to agonize over which stocks to pick, when to buy, or how to rebalance your portfolio. With a ready-made fund, all you need to decide is how much to invest and how often. It’s a low-stress, time-saving solution that lets you focus on building good investment habits rather than sweating the small stuff.
Investments made easy
With N26, you can buy stocks and ETFs without leaving your banking app. Get started from as little as €1.
Signs you might be ready to dive into ready-made funds
If you’re planning to invest for at least five years, ready-made funds could be a solid choice. Investments typically need time to grow and ride out market fluctuations, so a longer time horizon increases the likelihood of achieving positive returns. It’s also important to have your financial foundation in place before diving in. If you’ve already built up a cash savings buffer for emergencies — usually around three to six months’ worth of living expenses — you’ll be in a stronger position to commit to investing. This safety net ensures that you won’t need to dip into your investments when unexpected costs come up, allowing your money to grow uninterrupted.Ready-made funds are also a good choice if you trust that investment experts are likely to achieve better results than you would on your own. These professionals have access to tools, data, and market insights that the average investor might not, giving them an edge in creating a well-balanced, high-performing portfolio. Plus, these funds also appeal to people who don’t mind paying a little extra for convenience. These funds may cost a little more than a DIY approach, but they're worth it because you save time and effort. You also feel more secure knowing that your investments are in the hands of professionals.
Why some investors prefer a more hands-on approach
While ready-made funds can be an excellent solution for many investors, they’re not the right fit for everyone. If the idea of your investment’s value fluctuating makes you feel uneasy, you might want to reconsider. Investing inherently comes with ups and downs, and while diversification can help manage risk, no investment is completely immune to market volatility. If seeing your portfolio drop in value would cause you significant stress, it might be better to stick to safer options like savings accounts.For those who enjoy being hands-on with their investments, ready-made funds also might not be the best choice. If you prefer to research, analyze, and handpick every component of your portfolio, you’ll likely find the pre-assembled nature of these funds too limiting. Building your own portfolio gives you more control over your investment strategy and the opportunity to tailor it to your exact preferences.Similarly, if you’re hesitant to trust someone else to manage your money, ready-made funds might not sit well with you. While these portfolios are created and monitored by experienced professionals, it still takes a level of trust that their decisions align with your financial goals. If you’d rather keep full control of your investments, a self-managed approach might be a better fit.
Your investments, managed by experts at N26
Ready to grow your money stress-free? Let the experts handle the hard work with N26’s ready-made funds — simple, accessible, and managed by pros. Choose your fund, sit back, and watch your wealth take shape.
From tight election races to changing interest rates, the world can be pretty unpredictable — and uncertainty causes volatility in the stock market. Learn how from finance professional Kevin D. Flynn.
The old saying “don't put all your eggs in one basket” is also valid in the world of investing. Here's why portfolio diversification matters and why a diversified portfolio is stronger long-term.
Next-gen options like ETFs and fractional shares are revolutionizing investing and making financial markets more accessible, especially to young investors. Veteran investor Brendan Walsh explains how.
From tight election races to changing interest rates, the world can be pretty unpredictable — and uncertainty causes volatility in the stock market. Learn how from finance professional Kevin D. Flynn.
The old saying “don't put all your eggs in one basket” is also valid in the world of investing. Here's why portfolio diversification matters and why a diversified portfolio is stronger long-term.
Next-gen options like ETFs and fractional shares are revolutionizing investing and making financial markets more accessible, especially to young investors. Veteran investor Brendan Walsh explains how.
