What does the 'automatic drip feed' investment option involve?

Life Experts will always advise you to spread your investment as much as possible across funds that have passed our selection. And several forms of diversification are possible:

- You can invest your premium in one fund. A very well-known fund such as, for example, the "Flossbach Von Storch Multiple Opportunities II" will typically spread your investment across more than 100 different positions (see the annual report here, section "statement of assets"). But it can get even better... - You can also invest your premium in several funds. This provides even greater diversification. For example, with insurers such as NN you can take out a child savings policy in Branch 23, where a monthly premium of, for example, € 100 is spread across no fewer than 6 funds. So you can assume that, in many cases, that € 100 per month is probably divided and invested across more than 600 separate positions (shares, bonds, cash). Incredible, isn't it? Insurers therefore really do offer instruments that make super diversification possible even with very small amounts. - You can then also invest your premium with several insurers. Although much less common, this protects you against future problems with one particular insurer. - And finally... You can then also spread the premium over time. You do this by paying in periodically (usually monthly).

But what if you now make a one-time payment? This could, for example, be a reinvestment of a paid-out capital, but equally a backservice payment into an IPT (an individual pension commitment funded by your company) during your active career. Or the investment of your company's reserve. How can you then ensure a spread over time?

Life Experts solves this by building an "automatic drip feed" into your contract. In this case, you start by worry-free paying your entire amount to be invested into a cash fund (read: a risk-free fund). The insurer then transfers, on a monthly basis, part of that deposit into a fixed combination of Branch 23 insurance policies. Together with Life Experts, you choose into which funds, in what proportion, and also how often and how much you transfer. The drip feed runs entirely automatically, and typically extends over a period of 6 months to 24 months.

The main advantage of a drip feed is that, if the funds temporarily perform less well during that period, you can buy more and more units for the same amount. The reverse is also true. If the funds rise back in value, you would of course have been better off entering all at once at the start. But an "automatic drip feed" simply focuses on avoiding downside risk, and on long-term returns. "Time in the market" is simply more important than "timing the market". And that is the real advantage of the automatic drip feed: you no longer need to "time" "the market" at all.

Bjorn pays € 100.000 backservice into his IPT through his company. In his case, the IPT is a 100% Branch 23 insurance policy. The € 100.000 is first fully invested in a cash fund. The insurer then transfers, every month for 1 year, the sum of € 8.333 into seven different funds. 40% of each 8.333 goes into 1 fund, and the remaining 60% is spread across 6 funds, each for 10%. Not only does Bjorn thereby achieve a hyper-diversification of his investment across no fewer than 7 funds (each of which is, in turn, invested in a few hundred positions itself), but Bjorn also hedges himself against any potential decline in the price of those funds. Because if the funds decline in value, he can then buy more units of the fund month after month for his € 8.333. After one year, the cash fund is fully depleted and Bjorn's policy is fully invested across 7 funds. All entirely automatic, without Bjorn having to make any extra effort for this.