Overview

• Only about 12 million Germans, roughly one in six of those over 14, held stocks in 2024, Deutsche Aktieninstitut data shows.
• A representative Bankenverband survey found that over half of respondents admit they do not understand how the stock market works, fueling a preference for low-risk savings products.
• Financial experts advise diversifying across asset classes to reduce portfolio risk, with mutual funds and ETFs providing straightforward access to a broad mix of securities.
• Investors are urged to use the price-to-earnings ratio as a basic valuation tool and to be wary of high dividend payouts that may indicate limited reinvestment opportunities.
• Accruing (thesaurierende) funds automatically reinvest earnings, harnessing compound interest over time and simplifying long-term equity investing for beginners.