Increase equity during the savings phase

Just leave funds and all that stuff alone. We're talking about 5,400 euros over 3 years here... Generating another 1,600 euros (30%) from that, mind you only the first 150 euros actually experience 3 years, is tough (not impossible). The risk that instead of the 5,400 euros only 5.4 or 3 thousand euros remain is significantly higher in proportion.

That all has no meaningful (added) value.

With funds (of whatever type, content, and quality), also look at the cost side. You can easily lose a percent or more of return there.

Wow, provider change... optimizing from 0.5% to 1.5%. So 1% more over 3 years... in the end we're talking maybe 100 euros minus 1 hour of work for the process. Yes, it might be worth it, but overall, well.

I assumed that the OP has a certain capital base and that the €150 is the capital he is willing to invest with risk. He does write that at the moment everything is in a low-interest savings account. If that is not the case, he should completely abandon the house construction. What I also wouldn't do is chase every tenth of a percent on the mortgage.

It said that he is willing to take a certain risk with this amount. Whether and how much additional risk exists is unknown. And for this amount, he excludes risk (otherwise he would have probably stated it).

The original question was:

what is the best thing to do with my equity while I save it up for a house construction in 2-3 years?

So it was not only related to the €150. The response from all the other posts was that he should preferably stay risk-free with the instant access savings account. And my note was not to let the money dwindle on a miserably low-interest instant access savings account (e.g. Sparkasse here 0.05%-0.15%), but to see if there is room for optimization. There are providers subject to the German deposit guarantee scheme that still grant over 1% interest rate. For €100 in 3 years, I wouldn’t switch for that. But for €1000, I would consider it.

And I would ask myself why someone offers 1% and what happens to the money and how easily I can access it again (despite deposit insurance). For there must be some reason.

Hello,

with a monthly amount of EUR 150.00, apart from various funds, there is not much left that can bring higher returns.

As has already written, you also have to consider the cost side there. Starting with a front-end load, through custody fees (deducted directly from the fund assets), custody account fees and base custody price (if not already present), quite a lot adds up.

If, on the other hand, you want to "play" with a larger lump sum, shares with a nice dividend yield would be worth considering – but in the extreme case, everything could also be lost...

A somewhat safer one-time investment would also be equity-linked bonds – it can happen that at the end of the term, you receive not cash but a fixed number of shares of the underlying asset – and at the latest then we also face a total loss risk again...

In short: higher return = higher risk – anyone who claims otherwise is not advising seriously.

Regards,

Dirk