I update regularly about my stocks and index funds investment. It’s in total approx 25-30% of my investment portfolio at the moment.
I have created an automatic money transfer from my bank because it will save me the brokerage fees (they made a deal). My investment is very small, but it’s ongoing every month since June 2018.
Sparindex INDEX OMX C25 KL
It has an annual cost of 0.39%. Investments are made exclusively in Danish shares, which are included in the OMX C25 Index, where no share may amount more than 20%.
I get paid dividends (between 2-8% annually)
Return on investment: +24,96%
Return on investment: +6,77%
Return on investment: -10,54%
My investment strategy
I started investing in the stock market back in August 2017.
I invested in 3 stocks to get started. Later on, I sold 2 with a good return of around 25% and kept the last one. Over time I learned more about stocks and index funds.
I chose to use index funds because this will lower the risk in my investment portfolio and it’s very time-consuming and difficult to select individual stocks.
In this way, part of my investment portfolio basically follows the development of the stock market instead of individual stocks.
I will still invest in individual stocks but this is a good way to balance risk.
My criteria for selecting index funds
- The annual total cost must be under 1% (cost eats into returns).
- The index has strong global companies included (like S&P 500)
- The last 5 years gave at least 10% in return (fairly high-risk tolerance)
- No share may amount more than 20%
- They paid out annual dividends
Invest in index funds
It has become incredibly popular to invest in index funds. Many have experienced some very positive returns on investment with less risk (than picking stocks) and less time involved.
However, I expect much lower returns in the coming years because the market is very overvalued. It’s still a very easy way to grow your wealth but I would not have more than 20% of my money in this asset allocation.
It’s an excellent low-cost investment strategy but you need to understand the criteria of the index fund and market trends before investing.
There is a wide range of index funds that track and invest in different indexes like S&P 500 (USA) or OMX C25 (DK). They are not the same because they include different kinds of assets and have different criteria.
You can find index funds that invest in specific stocks, bonds, small companies, foreign stocks, globally or locally. Most of them have very low fees and better returns compared with most mutual funds.
It’s not about beat the stock market but rather to be the market.
Most people that are investing in index funds have a long-term focus and that’s very good because it gives fewer outflows and more stable growth.
When you want to be financially independent then it’s a good investment opportunity in my opinion.
I hope you liked my update about my stocks and index funds.
💡 You can also follow me on Twitter with stocks and index funds updates
Join the monthly:
Stay Focused Email List
and stay connected 🙂
- Follow my journey and blog updates
- Stay on track
- Learn more during your own progress