How mutual funds can help you lower risk
I've thoroughly tested DEGIRO services with our analyst team by opening a real-money account and these are my most important findings:
- Risk management is an important aspect of trading and investing
- Mutual funds pick assets using a strict risk management policy, shielding you from risk
- Mutual funds are available at DEGIRO
Are you worried that you'll pick the wrong stocks and put yourself at risk of losing money? Just do what you would do in other walks of life - leave it to a professional! In this case, consider investing in a mutual fund, where experienced fund managers invest in stocks and other assets while making sure your potential losses remain within limits.
How do mutual funds manage risk? First of all, they have a risk management policy that is strictly followed and communicated. For example, European mutual funds must be classified into one of seven riskiness categories (with 1 being the lowest and 7 being the highest risk) and publish this information via their so-called Key Investor Information Documents.
More importantly, each of these funds are actively managed by a fund manager; an actual person who continuously hand-picks assets for the fund - supported by a team of expert traders and analysts of course - to achieve the right risk-reward mix. This expertise doesn't come free, so make sure you buy mutual funds at brokers that don't charge too much in additional fees. Does DEGIRO offer the right selection of funds at reasonable cost? Read on to find out.
To find out more, read our in-depth guide to risk management, where we discuss various types of risks, as well as popular broker tools to handle them.
Investing involves risks
Can you buy mutual funds at DEGIRO?
Yes, mutual funds are available at DEGIRO.
Is it worth buying mutual funds at DEGIRO?
Yes, DEGIRO is a good place to buy mutual funds, because costs are low.
💰 DEGIRO Mutual fund trading fees class | Low |
💰 DEGIRO withdrawal fee | $0 |
💰 DEGIRO minimum deposit | $0 |
💰 DEGIRO inactivity fee | No |
📃 DEGIRO deposit methods | Bank transfer |
🗺️ Country of regulation | Germany |
🎮 DEGIRO demo account provided | No |
Data updated on June 17, 2024
DEGIRO doesn't offer a wide selection of mutual funds, which can make it more challenging for you to diversify your investment portfolio.
At BrokerChooser, we only publish objective analyses based on live testing. Every recommendation is unbiased and based on first-hand experience: we open a live account anonymously at each broker, deposit real money and test every important feature.
Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.
Further reading
- DEGIRO price alerts explained
- DEGIRO stop-loss order type explained
- DEGIRO news feed quality
- DEGIRO stability
Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.