What happens to 100 euros if you put it in an Illiri ETF for the long term?

Saving just €100 per month can lead to substantial wealth over time, according to recent reports. October is often considered a month for saving and reflection on financial habits. A clear goal, persistence, and sufficient time are key factors in building long-term financial reserves. Even small monthly contributions can grow significantly over years, helping individuals achieve future plans such as greater financial security or additional funds during retirement. The approach to managing savings is crucial. Money left idle on an account without earning interest loses purchasing power due to inflation. On the other hand, long-term investments offer potential for higher returns, although these come with risks and value fluctuations. Understanding how time, regular contributions, costs, and investment management affect the final result is essential. For example, investing €100 per month for 15 years could generate around €29,000 under an average annual growth rate of seven percent before fees. This would represent a difference of approximately €11,000 compared to the total contributions made. In contrast, a similar mutual fund might yield around €25,000, highlighting the impact of lower fees. This calculation is illustrative and does not guarantee specific returns. Actual investment values depend on market movements, fees, and other factors, which means results could vary. October, a month dedicated to saving, provides an opportunity to reflect on effective ways to manage savings. According to publicly available data, there is over €30 billion in savings accounts within Slovenian households. Not all this money is necessarily intended for long-term investment. For the portion of savings not needed for current expenses or emergency reserves, options such as investments linked to an Individual Investment Account (INR) may be viable. An INR allows for investing under special tax conditions set by legislation. As long as the funds remain on the account, income from investments typically isn't taxed immediately. Under certain legal conditions, the first withdrawal after 15 years of uninterrupted ownership may be tax-free. It's important to understand the applicable rules, withdrawal conditions, and possible limitations, as tax treatment depends on specific circumstances. However, the account itself doesn't ensure a good investment outcome. Choosing the right financial instruments, diversifying assets, and understanding the costs involved are critical. Among the options are Ilirika ETF funds, designed for long-term investors and offering diversified investment opportunities. These funds allow trading on the stock exchange like shares, with a single purchase providing broad portfolio coverage. Their advantage lies in significantly lower costs: management fees amount to 0.6 percent annually, whereas traditional mutual funds sometimes exceed 2 percent. Lower costs do not imply worse returns, as many more expensive actively managed funds do not outperform the index they track over the long term. Ilirika offers domestic ETFs such as the Ilirika SBITOP TR ETF, focusing on top Slovenian companies, and the global Ilirika WORLD ETF, spread across thousands of international firms. Soon, the Croatian Ilirika CROBEX10tr ETF will join them. The benefits of Ilirika ETF funds become particularly evident when combined with an INR, as trading within an INR is tax-free. Tax liability arises only if the investor withdraws funds before 15 years, at a rate of 15 percent. If funds remain undisturbed for 15 years, both dividends and capital gains can be fully exempt from taxes. Primož Hajdinjak, CEO of ILIRIKA SKLADI, stated that Ilirika ETF funds enable simpler, clearer, and cost-effective long-term saving. When used in conjunction with an INR, they also provide tax exemptions. Long-term saving with Ilirika ETF funds does not require a large initial deposit. One can start with as little as €50 per month. An INR can be opened remotely via the ILIRIKA mobile app or in person at branches in Maribor, Celje, and Murska Sobota, as well as Post Slovenia branches. Local support is available at Ilirika, which may be a significant advantage for investors who prefer personal assistance and support from a local provider. This is a marketing message and does not constitute an invitation to buy or sell. Before making a decision, read the Key Investor Information Document (KID), prospectus, and other relevant documents at www.ilirika.si.