If you want to get more out of your savings, one way to do this is by making regular contributions to an investment fund. That means that instead of suddenly investing a certain amount of money in a fund, you'll be contributing new amounts every month with which you will subscribe more shares.

What do regular contributions offer?

As opposed to a one-off contribution, regular contributions to investment funds offer us:

  • Flexibility: as an investor you decide how much you are going to contribute month by month to your investment fund, a contribution which you can automate and which you can also suspend temporarily, increase or reduce depending on your circumstances. No matter how small this figure is, you'll establish a habit of saving.
  • Liquidity: by making periodic contributions you do not have to deposit all your savings at once in the investment fund, so you can continue to use them for whatever you want or whenever you need them.
  • Diversification of market risks: by making share subscriptions each month, the market's ups and downs will affect you less.
  • Savings planning: through regular contributions to an investment fund you will be able to better plan your long-term savings and investment goals, with a view to your retirement, for example, without compromising your current financial stability. If you set realistic targets and do so early enough, the return you will have to require on your investments will be lower and therefore more likely to be achieved.

Furthermore, by investing in investment funds through regular contributions, in most cases, you will be able to access your money whenever you need it, by redeeming (selling) your shares, Similarly, taxation is another positive aspect of the funds, since until you sell (redeem) the shares you will not pay taxes, provided that you are an individual resident in Spain.


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