Informing potential investors is an essential part of financial education

Interest in investing is growing in Belgium. But investing remains an unknown world for many. It is therefore necessary to gain knowledge about it. BEAMA has understood this. As representative of the asset management sector, we have made financial education one of our key focus areas.

In order to know more about this and about the investment world, we interviewed Marc Van de Gucht, Director-General of BEAMA.

"We notice that young professionals with some savings on the side often find it difficult to find their way to the stock market due to a lack of knowledge"

More and more young people are investing. How can you explain this trend?

The increasing interest of young investors in the stock market is due to a combination of factors. On the one hand, there is an understanding that money in a savings account doesn't yield anything (and even loses purchasing power due to inflation). On the other hand, the bull market of recent years has also helped in the growing popularity of investing.

EFAMA made a brochure for young people "Investing for a better future", which BEAMA is promoting. Why do you promote this brochure??

We notice that young professionals with some savings on the side often find it difficult to find their way to the stock market because a lack of knowledge: they want to invest but they are still looking for information before launching themselves into it (they don’t know how much and when to invest, what to invest in, how much risk to take and how to get started). We want to give them this information with this brochure (NL / FR / EN).

We also made some videos to reach out to this audience via social media. Check them out below:

Besides this brochure, there is also the website Club Beleg / Club Invest, created by Febelfin in collaboration with Assuralia, where everyone can find out about savings and investment products and their risks.

You can find many investor education initiatives on our BEAMA website (NL / FR).

"A lack of sufficient financial knowledge explains why the vast majority of households do not invest their savings directly in the capital markets"

Can you tell us some more about the EFAMA Investor Education Platform?

Investor education initiatives are essential to improve financial literacy and empower people to make good decisions when managing their savings. Without a basic knowledge of financial concepts such as risk diversification, compound interest and real return, you will struggle to invest or make informed decisions. A lack of sufficient financial knowledge explains why the vast majority of households do not invest their savings directly in the capital markets. And this is the case everywhere in Europe.

EFAMA, the European Fund & Asset Management Association, of which BEAMA is a member, has been a pioneer in encouraging authorities to increase the financial literacy of the population through widespread financial education initiatives. Incidentally, the initiatives of all the European professional associations are brought together in a book that EFAMA publishes annually. This can be a good source of inspiration for everyone.

"Don't put all your eggs in one basket: funds are excellent for this, they spread the risk"

What advice would you give young people taking their first steps with investing?

I assume that young people only take their first investment steps with the savings they don't need for several years. After all, investing is not something for the short term, but rather for the medium or long term. The earlier you start, the better. The power of compound interest was not for nothing called the 8th wonder of the world by Albert Einstein.

And do not invest all your money in the stock market at once, but spread your entry timing. Also, do not put all your eggs in the same basket: funds are excellent for this, they spread the risk. A pension savings fund is an ideal instrument to invest a relatively limited amount on the stock market each year. The tax benefits you enjoy here are a nice bonus.

Consider the risks you are willing to take and do not hesitate to seek advice from your banker or advisor. And above all - taking the above into account - dare to take the first step!

?