Skip to content Skip to sidebar Skip to footer

The 10 Best Tips For Investing in Switzerland

Do you want to invest your money and let it work for you in the future? No matter how old you are, what income you hope for and over what period of time you want to invest your money: With the decision to invest your money.
Now you are probably asking yourself: What are the best tips for investing in Switzerland? In the beginning, it is often not easy for beginners to find their way around the world of various investment options. In Switzerland, young people in particular are reluctant to invest and, according to a study by the University of Zurich, only around 10 percent of 18 to 29-year-olds own shares.
Our team has therefore put together the best tips on investing money in Switzerland that make investing money easier for beginners. Because whether you are thinking that you want to invest your money in funds or that you want to invest in a property: These tips will help you to find the right strategy. (By the way, you can create your own investment strategy free of charge and without obligation here). With our 10 tips for investing money in Switzerland you will save yourself sleepless nights and maybe discover your passion for investing money.

Tips For Investing In Switzerland

The 10 Best Tips For Investing in Switzerland

Tip 1: "Adieu" bank account: invest money in Switzerland at good interest rates

Our first tip for investing money in Switzerland is to say goodbye to your bank account. Obviously, you need your bank account and in general there's nothing wrong with that. But as soon as more money than necessary accumulates on it, you make losses instead of income.
Today, Swiss banks offer their customers interest rates of 0.01 percent. As prices rise at the same time, the money in your bank account loses value. So it is time to say goodbye to your bank account as an investment, even if it seems that you can invest money there without risk.With the help of our tips, you will definitely find a good alternative on how you can invest your money in Switzerland at good interest rates.

Tip 2: invest money regularly

If there is regular money left over at the end of the month, make sure it is automatically invested.
You can set an amount yourself that will be debited at the beginning of the month so that you are not tempted to spend the money during the month. In this way you can easily and simply invest money every month without having to actively take care of it yourself!

Tip 3: Set your investment horizon

The principle when investing money is: the longer you can tie up your money, the better. Every investment depends on three factors: liquidity, income and security. While income and security play a major role when choosing an investment, liquidity is particularly important when determining the investment horizon.
Since there are price fluctuations when investing, it would be fatal if you needed your money in the middle of a stock market low - this would lead to losses. With a long investment horizon, these stock market fluctuations are balanced out and the risk of losses is reduced.
Since your investment success depends on the investment period, we at Yova advise you to invest your money over a period of at least five years.

Tip 4: Watch out for hidden fees when investing

Nothing is more annoying than finding after signing a contract that you have skipped the paragraph that deals with fees. Since such unpleasant information is usually hidden in the small print, something like this can of course happen to anyone quickly.
Many Swiss people who invest their money in funds are surprised to find that the investment is up to four times more expensive than initially expected. Even when investing in ETFs, it is often the case that the expected returns will not materialize if the fees are not factored in in advance.

Tip 5: don't forget your principles

It is important to many investors today that they invest their money with a clear conscience. So if you maintain a sustainable lifestyle and you value social responsibility, this should also be reflected in your investment.

It is also important to be careful when investing money in sustainability funds: Just because a fund is labeled as sustainable does not mean that you actually only invest your money in sustainable companies. The composition of the funds is often opaque and it is difficult to see why certain companies are included.

Tip 6: Beware of investment trends

It is of course tempting to follow current trends and invest your money in promising companies or crypto currencies. But be aware that this type of investment is one thing above all: very risky and unpredictable.
At Yova, we advise against investing your hard-earned money in companies that are not yet known how they will develop. Instead, when creating your portfolio, you should make sure that the majority of your assets are invested in assets that have already proven themselves.

Tip 7: decide on the right system

Anyone who invested their money in real estate a few years ago can now enjoy good returns. In the meantime, however, the purchase prices of real estate in Switzerland are usually so high that they are no longer worthwhile as a profitable investment. Due to the high prices, you run the risk of investing all of your money in one system. We advise you to diversify your investment and split it between different countries, currencies and other influencing factors. However, do you dream of owning your own house to live in? If you have the necessary capital, you can save on rent.

Tip 8: Pay attention to the interest

The keyword here is compound interest. If you do not spend the interest you receive on your investment and it remains in the investment, it will earn interest in the coming interest period along with the original capital. This increases your capital and you receive a correspondingly larger interest income than in the previous interest period. In this way, you benefit from compound interest, which increases the amount you originally paid in significantly.

Compound interest arises when your investment grows by the amount of interest and this amount earns interest again. You could also think of your money as a snowball rolling down a mountain. With every meter that it covers, it gets bigger because it absorbs more snow. The longer you let the snowball roll, the bigger it is at the end of the mountain.

Tip 9: be patient when investing money

Have you dared to take the step and invested in your optimal portfolio? Congratulations! Now is the time to be patient because it will take a while for your money to multiply. Successful investors do not see investing in the stock market as a 100-meter sprint, but much more as a marathon that is covered slowly.
Of course, people got rich on the stock market overnight - but that is generally not to be expected. It is more likely that your money will increase or decrease by small amounts due to daily fluctuations and lead to the expected returns over a longer period of time.
Even those who check the share prices every day will notice that nothing can be changed in the course of things. The stock market is difficult to predict, and for your own soul, it is better if you relax and invest passively.

Tip 10: talk about your money

The Swiss have a reputation for being reluctant to talk about money. That shouldn't be the case, we think. Investing money can be very confusing for beginners, especially at the beginning. Write us a message if you have any questions about investing and let our experts advise you. We at Yova will be happy to give you further tips on investing in Switzerland. This makes it easy for you to put together your personal investment strategy.