Most Belgians think investing means opening a broker account and buying individual stocks. It's what banks often push, and it sounds exciting. But here's the problem: stock-picking is risky, time-consuming, and most professionals can't even beat the market consistently. You're essentially gambling with your future.
Funds solve this by letting you invest in hundreds or thousands of companies at once. It's boring, but it works. And in Belgium, it's easier to get started than you might think.
What are investment funds?
Investment funds are a way to pool your money with other investors. A professional then manages this combined pot to invest in a wide range of assets, like stocks or bonds. Instead of buying a few shares of Apple or Amazon yourself, you own a small piece of a much bigger basket that can include hundreds or even thousands of companies. This gives you instant diversification. If one company doesn’t do well, it’s likely balanced out by others that perform better.
There's a variety of funds you can invest in:
- Mutual funds: traditional funds often offered by banks or asset managers. They can be actively managed (a manager picks investments) or passive (tracking an index).
- Index funds: a type of mutual fund that tracks a market index (e.g. the S&P 500 or BEL 20). They simply buy all the components of the index. Index funds are passive, low-cost, and aim to match the market performance.
- ETFs (Exchange-Traded Funds): ETFs are very similar to index funds in that they often track indices, but they trade on the stock exchange like stocks. You buy and sell ETFs through a broker at market prices, whereas mutual funds (including index funds) are typically bought directly from a fund provider once a day at a set price.
Even though there are different types of funds, they all have one thing in common: they let you invest in lots of assets at once. You don’t need to spend hours researching and picking individual stocks. For beginners, this “one decision and done” approach makes investing much easier.
Why invest in funds?
For those new to investing, funds offer several advantages:
Instant diversification
With one fund, your money is spread across lots of companies or bonds. This means you’re not betting everything on one or two stocks. For instance, a global stock fund might include thousands of companies around the world. So if one business struggles, others can make up for it. Being diversified like this makes it very unlikely to lose everything.
Lower risk and a smoother ride
Stocks go up and down. But when you invest in a broad fund, those ups and downs are less extreme. If one region or industry has a rough patch, another might be doing well. You avoid the risk of choosing a single company that crashes. Funds help you dodge the classic “all your eggs in one basket” mistake.
Hands-off investing
One of the best parts about funds is that you don’t need to constantly follow the markets. Especially with index funds or ETFs, everything follows a set strategy. You invest once and let the fund do its thing. It’s much easier to stay the course when you’re not making decisions every week.
A track record of strong long-term returns
The stock market has gone up over the long term. By investing in a broad fund, you’re investing in the whole market. A good example is the MSCI World index, which has returned around 9–10% per year on average for decades. You benefit from the long-term growth of the global economy. Of course, no one can predict the future, but this approach has worked well in the past.
You can start small
You don’t need loads of money to get started. Some funds support low minimum investments or even fractional shares.
Cost-effective (if you pick the right fund)
Buying one fund is often cheaper than buying many individual stocks. And passive funds (like index funds and ETFs) usually charge very low annual fees, sometimes as little as 0.1% to 0.3%. In comparison, active funds from banks often take 2% or more every year. Those higher fees can really eat into your returns over time. Lower fees mean more of your money stays invested and working for you.
Active vs passive funds
Not all funds are created equal. There are two main types of funds: active and passive. And understanding the difference can save you a lot of money (and headaches).
Active funds
These are managed by professionals who try to beat the market by picking the “best” stocks or by timing when to buy and sell. Most funds sold by banks fall into this category. On paper, it sounds good. But in reality, it rarely works out.
Managers can get it wrong. And even if they do well, the high fees (often 1% to 2% per year) eat into your returns. To even match the performance of a simple index fund, they need to beat the market by more than those fees. The European financial watchdog ESMA looked into this and found that over 75% of active funds underperform their benchmark index over the long run. So most people end up paying more for worse results.
Passive funds
These do the opposite. Instead of trying to beat the market, passive funds aim to match it. They follow an index, like MSCI World or the S&P 500, and simply invest in the companies that are part of that index.
There’s no stock-picking, no market timing. Just steady, consistent investing. Because they’re so simple, passive funds are also very cheap. Fees are usually below 0.3% per year.
And here’s the kicker: by keeping it simple and cheap, passive funds often outperform the more expensive active ones over time. You get the average return of the market, which has historically been very solid.
ETF or index fund?
You’ve probably come across both ETFs and index funds while looking into investing. They sound similar, and they are. Both can track the same index, like the S&P 500. But there are a few differences that matter when you’re starting out.
Buying and selling
ETFs trade like stocks. You need a broker account, and you buy or sell them at market prices during the day. Index funds are different. You usually buy them directly from the fund provider or through a platform, not on a stock exchange. You place your order (say, €500), and the fund gives you the right number of units at the end of the day based on that day’s price.
Minimum investment
Index funds often allow you to invest any amount. You can get fractional units, like 0.67 if a full unit costs €150 and you invest €100. Most ETFs don’t do that so you have to buy whole shares. So if one share costs €50 and you want to invest €100, you can only buy 2. That last €0.50 sits unused unless your broker supports fractional investing (which is rare in Belgium).
This makes index funds more beginner-friendly, especially if you’re investing small amounts.
Automation
With index funds, it’s easy to set up an automatic investment plan. Your money is invested every month without you lifting a finger. Many invesment apps support this.
ETFs? Not so much. Most brokers require you to log in, calculate how many shares to buy, and place the order manually. Some offer savings plans, but they’re clunky and you might pay a fee every time.
Pricing and temptation
ETFs show you live prices during the trading day. That sounds great, but it’s a double-edged sword. Watching your investments rise and fall in real-time can lead to emotional decisions. Index funds only update once per day, which keeps things simpler. You don’t see the noise, and you’re less tempted to panic-sell or “buy the dip”.
Costs
The yearly cost (TER) is usually low for both ETFs and index funds, often between 0.1% and 0.3%. But watch out for transaction fees. If you’re buying ETFs through a broker, you might pay €5 per trade. That’s a 5% fee on a €100 monthly investment, which is massive. With index funds (or apps like Curvo), you usually don’t pay per trade. Instead, you might pay a flat fee or a percentage each year which is a great way to start investing and developing the best saving habits. So ETFs can be cheap for lump sums. But if you’re investing monthly, index funds are usually the better deal.
Taxes
Belgium adds another twist: the stock transaction tax (TOB). Most ETF trades are taxed when you buy and sell, either at 0.12% or 1.32%, depending on the fund. Many accumulating index funds are only taxed when you sell. And some specific funds (like the ones offered through certain platforms) avoid the tax altogether. Outside of TOB, taxes are mostly the same for ETFs and index funds as long as they’re EU-registered UCITS funds.
So, which one should you go for?
If you want full control and don’t mind doing a bit more work, ETFs through a broker might suit you. But if you’d rather keep it simple, automate everything, and start with small amounts, index funds (or an app that offers them) are the easier option.
The good news? Both follow the same strategy. They’re just two paths to the same goal: growing your wealth through the market. It just depends how hands-on you want to be.
How to invest in funds in Belgium
Ready to get started? Investing in funds in Belgium can be done in a couple of ways. Broadly, you have two paths:
- Through an investing app (managed for you): use a platform (like Curvo or similar app) that creates a portfolio for you. You simply deposit money, and they handle selecting the funds and managing the portfolio according to your goals.
- Do-it-yourself via a broker (or bank): You open a brokerage account and buy fund units yourself, typically by purchasing ETFs, or possibly buying into mutual funds offered by your bank. You make the decisions on which funds to buy and when.
Let’s break down what each involves:
Option 1: Investing through Curvo (automated)
If managing your own investments feels overwhelming or just not your thing, you’re not alone. Many beginners want to start investing but don’t have the time or interest to deal with all the details. That’s exactly why we built Curvo: to make good investing easy and accessible for Belgians. Here’s what you get with Curvo:
A simple setup
Just download the app (available in English, Dutch and French), sign up using itsme, and answer a few questions about your goals and how much risk you’re comfortable with. That’s it. Based on your answers, we’ll build the portfolio that suits you best.
A diversified portfolio built for you
Each Curvo portfolio contains thousands of companies from all over the world. Some include bonds to reduce risk. And all portfolios are made up of sustainable, EU-regulated index funds. So your money is spread out and you're investing responsibly.
Start from just €50
Because Curvo supports fractional shares, even a small amount like €50 is invested across your entire portfolio. You get a piece of everything, not just the one ETF you can afford.
Automatic monthly investing
Set an amount you want to invest every month, and Curvo takes care of the rest. The money is pulled from your bank account and invested without you having to log in or click any buttons.
No manual trading or rebalancing
You don’t need to choose which fund to buy, calculate how much to invest, or rebalance anything. We do it all behind the scenes, including reinvesting dividends and keeping your portfolio aligned with your goals.
Transparent fees, no surprises
Curvo charges an all-in fee between 0.6% and 1% per year. That covers everything: portfolio management, support, rebalancing, and custody. There are no transaction fees, and because Curvo portfolios use special funds, you avoid the stock transaction tax (TOB) too.
Built for starters
The app is user-friendly and designed for people who are just getting started. You’ll also find helpful guides and articles along the way. And if you ever have a question, we’re here to help.
Curvo is perfect if you want to invest in a smart, proven way without having to manage it all yourself. You’re following the same index investing strategy, but with everything taken care of for you.
Option 2: DIY with a broker or bank
If you want more control and are willing to learn the ropes, you can manage your own investments through a broker. This gives you full freedom, but also more to figure out.
Choose your broker
In Belgium, you can go for local brokers like Bolero or Keytrade, or international ones like DEGIRO and Interactive Brokers. Compare fees (trading costs, currency conversion, custody fees) and consider how easy their platform is to use.
Belgian brokers will handle tax reporting like the TOB and dividend tax for you. With foreign brokers, that’s on you.
Pick your fund(s)
To keep things simple, many DIY investors start with one or two broad ETFs. A popular choice is VWCE (Vanguard All-World), which gives you global exposure in one fund. Make sure to choose the accumulating version if you want to avoid the 30% dividend tax.
Open and fund your account
Most brokers let you open an account online (usually with itsme). You can start with €100 or even less, depending on the broker. The important part is getting started, not the amount.
Place your orders
To buy an ETF, you’ll need to place a trade. You can go with a market order (buys at the current price) or a limit order (only buys if the price drops to a set level). For most people, a simple market order is fine.
Set a routine (if you invest monthly)
If you plan to invest every month, set a reminder to log in and buy. Some brokers offer automated savings plans, but they’re not always smooth. Be aware that each trade might come with fees.
Watch out for costs and taxes
Every ETF trade comes with a broker fee and the stock transaction tax (TOB): usually 0.12% for stock ETFs and up to 1.32% for others. While Belgium doesn’t currently tax capital gains, a new tax of 10% on profits above €10,000 per year is expected in 2026. So it pays to buy and hold, and avoid frequent trading. Long-term, steady investing tends to work better anyway.
Managing your investments through a broker is great if you’re curious, want to learn, and don’t mind a bit of admin. Just keep it simple: pick one or two low-cost ETFs, invest regularly, and avoid the temptation to tinker. Many Belgians do just that, buying a global ETF like MSCI World every month and holding it for years. It works. It just takes a bit more time and discipline.
Taxes and costs in Belgium
Belgium has some quirks when it comes to investing taxes. But don’t worry, here’s what you need to know, without the jargon.
Fund fees
Every fund charges an annual fee, called the TER (Total Expense Ratio). For index funds and ETFs, it’s usually low: around 0.1% to 0.3%. Active funds are often much more expensive (1% to 2%+), which eats into your returns. Always check the TER. Lower is better.
Broker or app fees
Using a broker means you’ll likely pay a fee for each trade (often €0 to €5). Some also charge a custody fee. If you invest monthly, these can add up fast. Apps like Curvo charge a yearly fee (around 1%) but no trading fees. For small, regular investments, this setup can actually be cheaper.
Stock transaction tax (TOB)
Belgium charges a tax when you buy or sell most funds:
- 0.12% on buying/selling many equity ETFs
- 1.32% on selling some accumulating funds
This is taken automatically by Belgian brokers and apps. If you invest often, the tax can add up. Curvo avoids TOB on contributions by using special funds, so you don’t pay this tax on every investment.
Dividend tax
If your fund pays out dividends, Belgium takes 30% right off the top. But if you use accumulating funds (which reinvest dividends), there’s no tax to pay when the dividends are reinvested. It’s better for growing your money.
Reynders tax (for bond funds)
If your fund holds more than 10% in bonds, you’ll pay a 30% tax on the bond gains when you sell. Equity funds don’t have this tax. So if you stick to stock funds, you won’t need to worry about it.
Capital gains tax (coming in 2026)
Right now, Belgium doesn’t tax capital gains on stocks or equity funds. But from 2026, there’s a plan to tax 10% on profits above €10,000 per year. Gains made before then will stay tax-free. And pension savings are exempt.
Tips to invest in funds from Belgium
- Start early: the sooner you begin, the more time your money has to grow through compounding. Even small amounts invested today can make a big difference later.
- Be consistent: set a schedule and invest regularly, like every month. It helps you build the habit and takes emotions out of the equation.
- Don’t try to beat the market: stock-picking is risky and most professionals don’t outperform index funds. Stick to diversified funds for the bulk of your portfolio.
- Diversify and think long term: choose broad, global funds that spread your money across many countries and sectors. Stay invested during market dips, you're in it for the long run.
- Keep an emergency fund: before investing, make sure you have a few months of expenses saved in cash. Only invest money you won’t need soon.
- Learn as you go: keep things simple. Focus on the key principles: diversification, low costs, and staying invested. That’s what works.
Summary
Fund investing offers you a straightforward path to grow your money without the complexity of individual stock selection. By spreading your investments across hundreds or thousands of companies through a single fund, you're reducing risk while positioning yourself to benefit from global economic growth. The data shows this approach consistently outperforms most alternatives over the long term.
Your next step depends on how hands-on you want to be. If you prefer full control and don't mind the admin work, a broker account with broad ETFs like VWCE might suit you. But if you'd rather focus on your career and life while your investments grow automatically, consider apps like Curvo that handle the portfolio management for you. Either way, the most important decision is to start investing regularly and stick with it through market ups and downs.