MUDr. Milan Brežný - Why I Became a Finax Client

September 10, 2018 07:05

Team Finax

Thanks to Finax blogs, Mr. Brežný found out that he has been using unprofitable saving products. „I regret it, as I could have earned twice as much.“ Read the story of how he became our client.

Mr. Brežný is a dentist. Together with his father, they take care of many people’s teeth in Slovakia. "I think I'm a smart person, but although I am university-educated, the school taught me only dental skills and not much about money. I am an ordinary person who gets offers of financial products when visiting a bank or receives a call by some salesperson with an amazing investment offer.“

“I was not very interested in finance, not knowing how large the differences between financial products can be and what those differences can do to the final performance. The information that I received from my financial agent were rather simple, and did not stay in much contact after the conclusion of the contract. I only received regular statements via email that I mostly did not even open."

Mr. Brežný invested used two investment products in the past. He has invested in Pioneer's Rytmus P3 Regular Saving Program (nowadays Amundi Asset Management). "I've invested to earn more money than I would with a regular bank account. I saved only a small amount each month, so that it would not affect my budget too much."

The contract was registered in July 2008 and Mr. Brežný kept sending a regular deposit of 83 euros for 14 months. During the whole period, he deposited 1,162 euros. After 10 years, in August 2018, he terminated the investment and withdrew a total of 2,223 euro "After reading your blog, where you compared the performance of Rytmus with Finax portfolios, I found out that the offer of financial products changed over the years and that there are much better products on the market today. I like that Finax puts clients on the top of their priority list. They have low fees, so I earn more and do not have to pay any taxes. At Finax, I was recommended a similarly dynamic product (90:10), but I could have earned much more than with Amundi."

Investing with Amundi earned Mr. Brežný a profit of 7 % per annum. Investing in index funds with the same risk would have earned 3,573 euros during the same time period, implying an annual return of 12.5%, which is significantly higher than in Amundi.

"When I saw how investment can be effective and simple, I decided to also terminate my other financial product in Amslico. I like that Finax offers great flexibility and I can make any deposits or withdrawals whenever I wish."

For the last two years Mr. Brežný invested 7,500 euros through three Amslico funds. When the investment ended, he withdrew 7,793 euros. If the same money had been invested in index ETF funds in Finax, the investment would reach a value of 8,294 euros. While in Amslico, the investment earned only 3.9% per annum, investing in index funds with the same risk profile would result in a profit of 9.9 % per annum.

Mr. Brežný moved his two investments from the original managers to Finax Intelligent Investing. "Finax has even rewarded me for the transfer and will manage 1000 euros for five years free of charge. Its cheap product became even cheaper."

"I'm glad that Finax blogs improved my financial awareness. My investments were better off than in a bank account, but it made me realize that investing through Amundi and Amslico was not as profitable as it could have been. I recommend Finax to everyone who wants to save effectively. Recommending Finax to my friends actually further reduces the fees."