1Sem.·

Savings plans

$DKDF 100€ per month

$KMR55C 100€ monthly

Happy New Year, dear community,

I would just like a brief assessment from you - does the split make sense from your point of view? Or are two savings plans enough?

First of all - yes, I know that having savings plans executed via the savings bank is now out :( but it has been common practice for a long time.

I save €700 per month in the three savings plans (see breakdown above). I'm actually satisfied with the performance of the MSCI World and the industry fund so far.

The performance of the sustainability fund leaves a lot to be desired.

I am currently considering discontinuing the sustainability fund and putting the monthly €100 into the industry fund. The new allocation would then be €500/€200.

Or should I just leave everything as it is in the interests of diversification?

Investment horizon: definitely another 10+ years.

I would be delighted to hear your feedback!

Best regards!

2 Commentaires

Tobi@TobiasSimple

1Sem.

Everything that starts with deka is junk

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VP@VP

1Sem.

Hi.

Without knowing the exact portfolio of the sustainability fund, I would personally switch to one of the other two. Or into cheaper ETFs, the deka funds also have relatively high running costs, don't they? You can use the compound interest calculator to work out what 1.5% more investment, eaten up by costs, would have amounted to.

Pursuing the UN's sustainability goals certainly makes moral and long-term sense, as the trends of climate change and the urge for social justice are becoming ever stronger, but will probably bring you underperformance in the short term, perhaps even in the medium term.

In my opinion, the ESG debate in the business world has recently "flattened out" considerably.

- Political support is also likely to decline sharply with the US election... as far as investments in renewable and sustainable technologies are concerned.

- Depending on how the economy/inflation continues to move, this poses risks for the often capital-intensive companies and the issue of financing costs.

From a really long-term perspective, you can make the bet of building up shares now in order to hope for an excess return on the market later. However, I wouldn't call your 10 years really long-term. Even if some years perform better than tech, for example. Who knows how many years you missed in which tech performed better than sustainability stocks.

With the diversified world, if you get an excess return from the sector, you will benefit to some extent anyway, as the weighting of those companies will then increase.

So I think the risk/reward ratio is clearly better with the other ETFs.

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