All terms
Savings plan (Sparplan)
An automatic, regular investment of a fixed amount into ETFs, funds or stocks.
With a savings plan (German: Sparplan) you invest a fixed amount every month or quarter without placing an order yourself each time. Many providers allow rates from 1 to 25 euros.
The benefit: you don't need to time the market. When prices are low you automatically buy more units, when they are high fewer. This is called cost averaging.
Example: you save 100 euros a month into an MSCI World ETF. After ten years you have paid in 12,000 euros. What it grows to depends on the market and is not guaranteed. Savings plans are very common in Germany.