Many people think that you need a large sum of money to start investing. In reality, not many students’ budgets will be endangered by saving ten or twenty euros per month.

Ninni Norra, who lives in Espoo, followed this advice in her own finances when she started mutual fund investing at the age of 19 in 2020. In the previous autumn, Norra had received advice on personal money management, saving and investing in the Pörssilähettiläs programme arranged by the Finnish Foundation for Share Promotion.

“I have been quite thrifty from a young age and have not spent money on frivolities. Thanks to the Pörssilähettiläs training, I started to understand how my choices and even small savings could allow me to improve my finances and fulfil my dreams. Patience is key.”

A fund felt secure

After some consideration, Norra entered into a monthly investment plan with a bank in two different equity funds. The risk categories of the funds were moderate, which entailed moderate yield prospects.

What she also liked about the funds was that she could get started with small sums and that the monthly sum invested could easily be changed according to her financial and life situation.

She made her decision on her own for the most part, because her home did not have any traditions of investing, although saving was encouraged.

Investment decisions should not be made on a whim. Which is why I decided not to invest in equities and fixed income funds.

“Funds felt more secure and convenient than direct equity investments and were easier to monitor, so I decided to sign a monthly investment plan to supplement some of my equity market picks. My savings will gradually increase when the returns are used to acquire additional fund units,” says Norra.

Her choices were also pruned by the strict basic rule given in her previous training, which advised against investing in unfamiliar options.

“Investment decisions should not be made on a whim. Which is why I decided not to invest in equities and fixed income funds. I also own equities, but my portfolio has increasingly focused on funds, since I am not very interested in making in-depth corporate analyses.”

Getting started with a small sum

Norra started mutual fund investing cautiously. She started by investing 15 euros a month in two different funds, for a total of 30 euros.

Despite her modest investments, the novice investor’s confidence was tested from the start. The coronavirus pandemic spread like wildfire in spring 2020, causing panic in the equity market as well. 

The outlook was improved in 2021 but the war in Ukraine also caused a downturn. 

The crises have not reduced Norra’s saving, although the returns have fluctuated along the way.

The last six months have been somewhat more positive.

“In fact, I have increased my monthly investment amount as time has passed. After growing more confident, I increased the monthly investment amount first to 50 and then 80 euros. Now, I am saving 300 euros a month.”

Even rapid drops in exchange rates have not deterred this economics student. As she has progressed in her studies, she has received confirmation that equities and equity-based funds are resilient and can be very profitable investment options.

“The same was emphasised even in the Pörssilähettiläs programme.”

Future cover

For now, Norra’s fund investments have been allowed to grow in peace.

The threshold for even a partial withdrawal remains high, and Norra has also strictly adhered to her monthly investment sum even in times of financial difficulty. 

“For me, the money invested is for the future and not for fleeting consumption. I consider it to be money that I am not yet using.”
 
She can’t yet say what that future need will be. It is largely about having financial backing and emergency funds which will bring a sense of security and flexibility to life. Personal savings will also be of use when negotiating for a home loan, for example.

“My generation is unlikely to enjoy today’s pension cover, and it is a good idea to prepare in good time,” ponders Norra.

“Investments can provide at least a partial financial independence before retirement,” considers Norra, who is a trainee in the Finnish Foundation for Share Promotion and societally active.

Talking about money is not taboo

Talking about personal funds and investments has traditionally been rarely discussed, even among friends or family.

However, attitudes toward this have changed in recent years and the younger generation is even more open about financial matters. 

Investing is discussed in everyday life even among 23-year-old Ninni’s friends, although this is partially because many of them are studying economics.

Norra also hopes that openness will remove some old stereotypes related to investing. You do not have to be a millionaire to invest and you do not need to inherit or study a culture of investing from your parents. 

And, if you invest wisely, you can truly prosper over the decades.

This is an advertisement. Before you make final investment decisions, look through the mutual funds' Key Investor Information Documents. The investment product's key features are described in the fund prospectus and Key Investor Information Document, which are available in Finnish, Swedish and English at www.op.fi. Please note that investing always involves risks and expenses. The value of investments can rise and fall, and an investor can lose part of or all the invested money. OP Fund Management Company Ltd manages the funds, with OP Asset Management as the portfolio manager. Stock investment services are provided by OP cooperative bank. Unit-linked insurance is issued by OP Life Assurance Company Ltd, with OP cooperative banks acting as its agents.