2024-04-11 12:49:00
The idea is simple: Many investors pay their money into an investment fund. This means you can benefit from different stocks and other investments even with smaller amounts. The first investment fund came onto the market as early as 1774.
One has to assume that Caspar David Friedrich’s parents did not think regarding savings plans when the future painter was born in 1774. After all, little Caspar had nine older siblings at that time and the family had completely different worries. In addition, the topic of investing money was not an issue among the common population and was reserved more for the nobility and wealthy merchants.
However, their investments were often associated with high risks. Anyone who bought stocks or bonds was investing in a government, a bank, a trading company or even just a trading trip. If the ship sank, the money was gone.
“Together we are stronger”
In the 1770s, a serious banking crisis raged in Europe. Broken loans granted in colonies triggered a wave of bankruptcies and deposits were lost. This led the Dutch businessman Adriaan van Ketwich to the realization: “Risk must be spread and diversified,” explains Thorsten Schrieber, board member of the asset management company DJE Kapital. “He founded the first fund in 1774 under the name ‘Unity Makes Strength’.”
The idea: Losses on one side should be offset by gains on the other. On this occasion, van Kettwich invented a new profession: “Three fund managers had to give their approval for investments. Investments might not be made beforehand,” says Schrieber. The Eintracht fund invested in around 2,000 individual securities, primarily interest-bearing securities.
Fundamentally unchanged to this day
The basic idea of being able to invest in broad packages of stocks and bonds has not changed much. Just the offering has increased a little. Fund assets amounting to 3.6 trillion euros are invested in Germany.
“Funds have become an integral part of everyday life for savers and investors. Anyone who wants to build wealth in the long term cannot ignore funds,” says Aki Reinke, CEO of Union Investment, the fund company of the Volks- und Raiffeisenbanken. “They offer everyone easy access to the global capital markets.” In doing so, they opened up investment opportunities that would otherwise not be accessible to the majority of people.
Successful for more than 100 years
Just like back then. The idea of democratizing financial investments also existed in 1774: “Adrian van Kettwich had the idea that he would share his knowledge with citizens who did not have a lot of wealth and who would be shown appropriate investment opportunities and given appropriate investment knowledge,” says Schrieber.
Incidentally, the fund founded by van Kettwich existed for 114 years and reliably generated four percent profit per year. The long-term perspective is still what makes it so attractive today, explains Reinke: “Funds are here to stay. Their importance will only increase, especially in view of the increasing requirements in retirement provision and wealth creation.”
For Caspar David Friedrich, this realization comes far too late. After a few successful years, the painter had to borrow money from friends in old age and died in May 1840 – impoverished.
Stefan Wolff, ARD financial editorial team, tagesschau, April 11, 2024 9:37 a.m
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