The shares we are talking about are traded on the stock exchange. The price is determined by the balance between supply and demand. How popular is the share? Is a lot of demand or supply expected?
Insight into company results, future expectations and general economic conditions helps you estimate the direction in which the share price may move.
"}},{"componentType":"sectionTitle","title":"The return on shares"},{"componentType":"paragraph","richBody":{"value":"There are two types of return on shares:
"},"alignedImage":{"position":"right"}},{"componentType":"accordion","accordionList":[{"title":"1. Dividend","richBody":{"value":"As a co‑owner of a company’s capital you usually have the right to part of the profit. If the company shares (part of) its profit with its shareholders, you receive a ‘dividend’ payment. How much dividend you receive per share depends on the level of profit. Dividend can be paid in cash or in new shares.
"}},{"title":"2. Capital gain","richBody":{"value":"Has the share price risen? Then your investment is worth more and, on paper, you have become richer. You can also sell the share for a higher price than the price you paid. One way a company can let shareholders benefit from a strong cash position is by buying back its own shares.
"}}]},{"componentType":"sectionTitle","title":"Shares: combine them"},{"componentType":"paragraph","richBody":{"value":"Do you have a lot of confidence in a certain company or expect strong growth in a specific sector? You can buy a share in, for example, ASML. But you may find the entire sector that this company operates in interesting. In that case, do not focus only on that one company in that sector. It is also sensible to buy shares in several sectors, such as IT, industry, the banking sector or healthcare. It depends on your preferences and on how you want to spread your risks.
A well diversified share portfolio holds shares from many different industries or regions. If one sector performs less well, investments in other sectors or regions can compensate. A good way to spread your investments is to invest not only in shares but also, for example, in mutual funds or ETFs. Below you find the key characteristics:
| Share | Mutual Fund | ETF |
|---|---|---|
| You invest in one company | You invest in multiple companies | You investing in multiple companies that are in an index that the ETF follows |
| You are not diversified | You are - dependin g on the fund - more or less diversified | You invest – depending on the index the ETF follows - more or less diversified |
| Transactioncost: €1,00 + 0,10% (maxmuml €150) per transaction | Transactioncost: none | Transactioncost: none for ETF's in the ING ETF Topselection |
The comparison above does not show all differences between these investment products. For example, you also pay a service fee on your investments. Read more about investment costs here. Want to learn more? Read more about ETF’s and Mutual Funds.
"},"video":{"type":"video","originalUrl":"https://assets.ing.com/m/1b1aae9abc724477/original/Video-2_Bepalen-waarin-je-belegt_v2.mp4","videoPreviewURLs":["https://assets.ing.com/asset/f6375493-1009-4b82-af7d-ea5527332136/480p/Video-2_Bepalen-waarin-je-belegt_v2.mp4","https://assets.ing.com/asset/f6375493-1009-4b82-af7d-ea5527332136/1080p/Video-2_Bepalen-waarin-je-belegt_v2.mp4","https://assets.ing.com/asset/f6375493-1009-4b82-af7d-ea5527332136/720p/Video-2_Bepalen-waarin-je-belegt_v2.mp4","https://assets.ing.com/asset/f6375493-1009-4b82-af7d-ea5527332136/mp4/Video-2_Bepalen-waarin-je-belegt_v2.mp4"],"thumbnails":{"mini":"https://assets.ing.com/m/1b1aae9abc724477/mini-Video-2_Bepalen-waarin-je-belegt_v2.jpg","webimage":"https://assets.ing.com/m/1b1aae9abc724477/webimage-Video-2_Bepalen-waarin-je-belegt_v2.jpg","thul":"https://assets.ing.com/m/1b1aae9abc724477/thul-Video-2_Bepalen-waarin-je-belegt_v2.jpg"},"extension":["mp4"]}},{"componentType":"sectionTitle","title":"Frequently asked questions"},{"componentType":"accordion","accordionList":[{"title":"What do you get when you own shares?","richBody":{"value":"With shares you buy a stake in a company. This means you can benefit if the company performs well and the share price rises. You also often receive dividend, a part of the profit.
"}},{"title":"How can I buy shares at ING?","richBody":{"value":"To buy shares you need a Self Invest account (Zelf op de Beurs beleggingsrekening).
"}},{"title":"What are the advantages of shares?","richBody":{"value":"For Dutch investors it may seem obvious to buy shares from the AEX or AMX index. Examples include ASML, ING, KLM Air France or Ahold Delhaize. Do not see these examples as advice to buy these specific shares.
"}},{"title":"Which shares should I buy?","richBody":{"value":"We do not give advice about which share to buy. Make a conscious choice about the companies whose shares you buy. First look into the company and the market in which it operates. Want inspiration? Look at which shares are popular among investors at ING.
"}},{"title":"How much money should I invest in shares?","richBody":{"value":"
Are you investing less than €1,000? Then investing in shares may not be wise. You pay relatively high costs, including transaction costs. With a smaller amount it is also difficult to build a well‑diversified portfolio.
"}},{"title":"What should I consider if I want to invest in shares?","richBody":{"value":"In general, spreading your investments is the most important principle. This also applies when you invest in shares. We are happy to explain why and give you more tips for creating an investment portfolio.
"}},{"title":"Is investing right for you?","richBody":{"value":"Are you considering investing in shares? Shares can be attractive if you:
It is important that you understand the risks of shares before you start investing in them. Read the risks of this investment category carefully.
Investing involves risks and costs. You may lose (part of) your investment. Read more about the risks of investing and how you can reduce them.
*This translation is intended for the customer’s convenience only. In the event of any inconsistency between the English translation and the original Dutch version, the original Dutch version shall prevail.
"}},{"componentType":"linkList","iconTitle":{"title":"Everything about"},"textLinks":[{"url":"/particulier/beleggen/hoe-werkt-beleggen/beleggingsinstrumenten-beleggingsfondsen","text":"Mutual Funds"},{"url":"/en/personal/investing/how-does-investing-work/investment-instruments-etf","text":"Meaning of ETFs"},{"url":"/en/personal/investing/how-does-investing-work/investment-instruments-structured-products","text":"Structured products"},{"url":"/particulier/beleggen/hoe-werkt-beleggen/beleggingsinstrumenten-obligaties","text":"Bonds"},{"url":"/particulier/beleggen/hoe-werkt-beleggen/beleggingsinstrumenten-opties","text":"Options"}]}]}}}