Investments

Investments

• Who can invest with Fondee?

  Anyone who is already 18 years old, has a residence in the Czech Republic, and a bank account in Czech crowns or euros.

• Can I invest as a one-off?

  Yes, you can invest, for example, a financial bonus from work, money from an inheritance, or savings that have been sitting idle in a current account.

• Can I invest regularly?

  Yes, regular investments are indeed the best way to invest long-term.

• What is the minimum investment?

  You can invest from as little as CZK 500. For an ideally diversified investment, it is advisable to have at least CZK 10,000 invested. You can send deposits gradually according to your possibilities.

• When will you buy my investments?

  Your money will be invested on the next trading day after your payment is received.

• When is my portfolio rebalanced?

  Rebalancing of your portfolio takes place once a month. The date on which portfolio rebalancing will occur can be found after logging in to the client zone. You can also turn off rebalancing in the client zone if you do not want your portfolio to be rebalanced. With rebalancing turned off, the optimal allocation is topped up by new deposits. When new money is invested, ETFs are purchased in such a way that the portfolio best matches the model allocation.

• Can I copy your portfolio?

  We don't prevent you from doing so, but monitoring and rebalancing a portfolio can cost an individual a lot of money in fees. Not to mention the amount of time and energy you spend on it. With us, you trade together with others, so you achieve lower costs.

• What returns can I expect?

  You can find the historical performance for each portfolio. The range of appreciation is from 1.20% up to 9.32% annually, measured over the last 10 years. It is also important to know that investing is risky and historical performance does not guarantee that it will repeat in the future.

• Do you offer financial advice?

  Fondee does not offer or provide financial advice.

• What will my investment account look like?

  Funds sent from your account are exchanged for euros, with which ETFs are immediately purchased. The account therefore consists of purchased ETFs and a financial reserve in euros (in the range of around 2% of the portfolio value). When closing the account or making a withdrawal, the euros are converted back to crowns and sent to your bank account.

• What is an ETF?

  ETF, Exchange Traded Fund, is a fund traded on a stock exchange. What is it? An ETF is traded on an exchange similarly to shares and is pegged to a specific underlying index, thereby copying its performance. This means that each ETF copies the development of hundreds to thousands of shares or bonds around the world. Want to know more? Check out the article about ETFs on our blog.

• What currency are my investments in?

  All ETFs in your portfolio are traded in EUR on European exchanges. You send money in Czech crowns, which we exchange for euros and use to purchase ETFs. When selling the portfolio, we send Czech crowns back to your account.

• What is the composition of individual portfolios?

  The investor chooses the investment composition from 7 different portfolio types, which differ in the percentage representation of equity and bond ETFs. Each ETF represents a specific geographic area or index, is sufficiently large and liquid, has several years of successful operation behind it, is used by global asset managers in their portfolios, has low fees, and has achieved solid historical performance.

• Can I adjust and change my portfolio?

  You can change the investment composition as you wish in the client zone based on selecting your investor profile. Your chosen profile must of course be appropriate and proportionate in the context of the evaluation of the investment questionnaire.

• Can I have multiple portfolios at once?

  Yes, you can now have up to 5 different portfolios. You can choose different investment profiles. For example, you can have a Cautious portfolio and a second Adventurous portfolio. You can name each portfolio, for example "for children" or "for retirement".

• Do I need to deal with taxes when investing?

  Yes, such a situation may arise. To make tax work easier for you, at the beginning of each year we prepare tax documents for you.

• Do you offer currency hedging?

  Currency risk on portfolios is not hedged for several reasons: 

  1. the historical volatility of the EUR-CZK exchange rate is relatively low, 
  2. the EUR-CZK development is difficult to predict and can go up or down, 
  3. we place emphasis on the cost component and hedging would mean additional costs for our clients, 
  4. hedging equally effectively is not possible because we give clients the flexibility to withdraw money at any time and therefore do not know what time period we should hedge for (a client can withdraw money tomorrow, but the hedging product itself would remain).

• Does Fondee do asset management?

  Yes, Fondee has a licence from the Czech National Bank for active portfolio management.