How to Invest EUR 500 per Month
A step-by-step DCA strategy for European investors, backed by real data
So you have decided to invest EUR 500 every month. Great decision. But where do you actually put that money? This guide walks you through the whole process, from picking your allocation to choosing a broker, selecting ETFs, and sticking with the plan. Everything here is backed by 20 years of real EUR data (2006-01 to 2025-12).
Step 1: Choose Your Allocation
Your allocation is what drives your returns. Picking individual stocks or trying to time the market matters far less than getting this right. Here are four portfolios at EUR 500/month, ranging from cautious to all-in on equities:
| Profile | Allocation | Real Return | Max Drawdown | Final Value (real) |
|---|---|---|---|---|
| Conservative | 20% MSCI World / 10% Gold / 70% MM | +41.8% | -6.0% | ~EUR 170,125 |
| Balanced | 30% MSCI World / 10% Gold / 60% MM | +60.1% | -8.6% | ~EUR 192,125 |
| Growth | 40% MSCI World / 10% Gold / 50% MM | +78.4% | -13.6% | ~EUR 214,124 |
| Aggressive | 100% S&P 500 | +284.3% | -46.8% | ~EUR 461,187 |
Compare these in our calculator
The "Final Value" column shows what EUR 500/month for 240 months (EUR 120,000 total invested) would be worth today in inflation-adjusted terms. The balanced portfolio grows your money by about +60.1% in real terms. The aggressive portfolio delivers +284.3%, but you need to sit through a -46.8% drawdown along the way.
Not sure which profile fits you? Read our EUR investor guide for a detailed comparison, or use the DCA calculator to test any custom mix.
Step 2: Choose a Broker
For automated monthly DCA in Europe, you want a broker that supports savings plans with low or zero commissions. Here are the most popular options:
| Broker | Commission (savings plan) | Best for |
|---|---|---|
| Trade Republic | Free | Beginners, simplest setup |
| Scalable Capital | Free | Wide ETF selection, good app |
| DEGIRO | Free (core selection) | Low-cost trading beyond savings plans |
| Interactive Brokers | EUR 1-3 per trade | Advanced features, widest selection |
For a straightforward EUR 500/month DCA setup, Trade Republic or Scalable Capital are hard to beat. Zero commission, automated execution, and all the ETFs you need are right there.
Step 3: Buy the ETFs
For the balanced portfolio (30/10/60), here is exactly what to buy each month:
| Allocation | Amount | ETF | ISIN |
|---|---|---|---|
| 30% MSCI World | EUR 150 | iShares Core MSCI World UCITS (EUNL.DE) | IE00B4L5Y983 |
| 10% Gold | EUR 50 | Xetra-Gold (4GLD.DE) | DE000A0S9GB0 |
| 60% Money Market | EUR 300 | Xtrackers EUR Overnight (XEON.DE) | LU0290358497 |
Set up three savings plans: EUR 150 for equities, EUR 50 for gold, and EUR 300 for money market. All executed on the same day each month. That is it. Your DCA is running.
Step 4: Rebalance Annually
Once per year in January, take a look at whether your allocation has drifted. If equities had a great year, they might now make up 35% of your portfolio instead of 30%. Sell the extra 5% and buy more money market or gold to get back to target.
Rebalancing matters because it mechanically enforces "sell high, buy low." Without it, a strong stock market gradually pushes you into a riskier portfolio than you originally intended.
Step 5: Stay the Course
The hardest part of DCA is not the setup. It is the discipline to keep investing when markets are falling. When equities dropped sharply in 2008 and 2009, many investors paused their savings plans or sold in a panic. Those who kept going bought shares at historically cheap prices and were rewarded handsomely in the recovery.
A few rules that help:
- Never pause your savings plan during a crash. That is exactly when DCA does its best work, because you are buying more shares at lower prices.
- Never check your portfolio more than once a month. Watching it daily leads to emotional decisions that hurt your returns.
- Never sell because of a scary headline. Markets have recovered from wars, pandemics, and financial crises. Time in the market beats timing the market.
- Increase your amount when your income grows. Got a raise? Add the difference to your savings plan and let compounding do the rest.
What About Higher Amounts?
The math scales linearly. With the same balanced portfolio at EUR 1,000/month, your 240 months of investing would be worth approximately EUR 384,249 in real terms. At EUR 200/month, you would end up with roughly EUR 76,850. The allocation matters far more than the exact amount you invest each month.
Use our DCA calculator to see exact results for any monthly amount.
Frequently Asked Questions
How much can EUR 500 per month grow over time?
With a balanced 30% MSCI World / 10% Gold / 60% Money Market portfolio, EUR 500/month over 240 months (EUR 120,000 invested) grew to approximately EUR 192,125 in real terms, a +60.1% inflation-adjusted return. With 100% S&P 500, the same investment grew to approximately EUR 461,187 in real terms (+284.3%).
What is the minimum amount to start DCA in Europe?
Most European brokers like Trade Republic and Scalable Capital allow savings plans starting from EUR 1. There is no practical minimum. That said, EUR 50 to 100 per month is a reasonable starting point that lets you diversify across 2 or 3 ETFs.
Should I invest EUR 500 all at once on one day each month?
Yes. Pick a fixed date (for example, the 1st or 15th of each month) and invest the full amount. Splitting EUR 500 into weekly EUR 125 purchases adds complexity without meaningful benefit. The monthly averaging effect is already enough.
What happens if I miss a month of DCA?
Missing one month has negligible long-term impact. The power of DCA comes from consistency over years, not any single month. If you miss a month, simply invest your normal amount the next month. Do not try to "catch up" with a double investment, because that introduces timing risk.
Start Now
The best time to start DCA was 20 years ago. The second best time is today. Use our free DCA calculator to test your preferred allocation with real EUR data, then set up your savings plans and let compounding do the work.
New to DCA? Start with our beginner's guide. For European-specific advice, see our EUR investor guide.