Find out in our guide what options are available for investing money in Switzerland.
Switzerland is one of the wealthiest countries in the world, with a stable political climate, a strong currency and an excellent financial centre. Yet this is precisely where the problem lies for many Swiss investors: the low-interest-rate policy of recent years has rendered savings accounts virtually worthless. With an average interest rate of 0.81% per annum on traditional savings accounts, it is difficult to build wealth and keep pace with inflation.
It’s simple maths: anyone holding CHF 100,000 in a savings account with 0% interest loses purchasing power every year due to inflation. Strategic investment is therefore not optional, but essential for long-term wealth accumulation. Beginners in particular benefit from starting early – the power of compound interest is your strongest ally.
Investing means using your capital strategically to grow it over time. It is a conscious decision to put your money to work rather than leaving it idle in a bank account.
The difference between saving and investing:
It is important for beginners to understand: investing is not gambling. Responsible investing is based on strategy, diversification and a long-term perspective. It is not about getting rich quickly, but about building wealth steadily and systematically.
Switzerland offers a wide range of investment options. Which one suits you best depends on your goals, time horizon, and risk tolerance. Here’s an overview:
The classic savings account is the safest option, but currently offers very little return. With interest rates of 0% to 0.25%, it’s ideal for your emergency fund, but not for building wealth.
Suitable for: Emergency funds, short-term savings.
Slightly better than the savings account: Money market accounts currently offer interest rates of 0.25% to 1.5% and allow you to access your money at any time. You retain maximum flexibility with minimal return.
Suitable for: Emergency funds, flexible short-term savings.
If you’re willing to lock up your money for a fixed period (e.g., 1-5 years), fixed-term deposit accounts offer interest rates of 1.5% to 3.5%. The catch: The money is not available until the end of the term.
Suitable for: Medium-term savings goals, conservative investors.
Bonds are essentially loans to governments or companies. You borrow money and receive regular interest payments. With returns of 2% to 4%, they are more stable than stocks but offer less growth potential.
Suitable for: Portfolio stability, regular income.
When you buy shares in companies, you participate in their success. Historically, stocks have delivered an average annual return of 5% to 8%+, but with higher volatility.
Suitable for: Long-term investors with a higher risk tolerance.
An investment fund is a professionally managed portfolio of several securities. You benefit from expert knowledge and diversification, but pay fees of 1% to 2% annually.
Suitable for: Beginners who want professional management.
ETFs are the modern favorites for beginners: They function like funds but are traded on the stock exchange and are extremely inexpensive. Average costs are only 0.37% per year. You get broad diversification with minimal fees.
Suitable for: Beginners, long-term wealth accumulation, cost-conscious investors.
Getting started with investing can seem overwhelming. But it doesn’t have to be. Here are the practical first steps:
Before you invest even a single franc, you need to know what you’re investing for:
A concrete goal (e.g., “CHF 100,000 in 10 years for a mortgage down payment”) makes it much easier to choose the right strategy.
This is absolutely non-negotiable: Before you start investing, you need an emergency fund. The common recommendation: 3 to 6 months’ expenses.
Why? Because emergencies happen. If your car breaks down or you temporarily lose your income, you need readily available cash – without having to sell your investments. This emergency fund belongs in a savings account, not in stocks.
Practical tip: If you have CHF 3,000 in monthly expenses, accumulate at least CHF 9,000 to 18,000 as an emergency fund.
Risk tolerance is your psychological ability to withstand market fluctuations. Beginners often make two mistakes:
There’s no one-size-fits-all answer. A rule of thumb: One formula is “100 minus your age = equity allocation.” A 30-year-old would therefore own 70% stocks, a 60-year-old 40%.
To buy stocks, ETFs, or funds, you need a securities account. In Switzerland, the following institutions offer securities accounts:
Typical fees: 0.5% to 1% per transaction for ETFs and Swiss stocks, 1% for international stocks. Custody fees: 0.20% to 0.30% per year or none at all.
For absolute beginners, experts recommend: Start with broadly diversified ETFs.
Examples of ETFs for beginners:
A popular portfolio for beginners is the 60/40 portfolio: 60% equity ETFs + 40% bond ETFs.
You don’t have to start with CHF 100,000. You can begin with CHF 50 to CHF 500 per month via an ETF savings plan. The advantage: Regular small investments allow you to benefit from the cost-averaging effect—you automatically smooth out price fluctuations.
Risk isn’t the enemy – poorly understood risk is. Learn how to manage it.
Every investment decision is based on three competing goals:
Key principle: It’s impossible to maximize all three. Real estate offers a good return and is relatively safe – but it’s illiquid (it takes months to sell). A savings account is extremely liquid and safe – but offers virtually no return.
As an investor, you always have to make compromises and find a balance.
The most important concept for reducing risk is diversification: Spread your money across different asset classes, countries, sectors, and companies.
Practical example:
Bad: Putting all your money into a single Swiss tech stock
Good: 50% Swiss blue chips, 30% international ETF, 20% bonds
You can achieve this with an investment of CHF 50 through diversification using ETFs.
Tip: Automated trading completely eliminates emotions. Learn more about our copy trading offer now.
Concentration on individual stocks: Investing in only one stock carries a high risk. ETFs diversify automatically.
Many beginners underestimate how much fees eat into returns. Even a small difference adds up to a huge difference over decades.
| Fee type | Amount |
|---|---|
| Transaction fees (buying/selling) | 0.5% (ETF/Swiss shares), 1% (international shares) |
| Stamp duty (mandatory) | 0.075% (CH), 0.150% (abroad) |
| ETF management fees (TER) | 0.04%–0.95% per year |
| Actively managed funds | 1.5%-2% per year |
| Custody fees | 0%–0.30% per year |
Scenario: CHF 1,000 invested annually with a 5% gross return:
Difference: CHF 14,000 less in assets due to higher fees!
For beginners who don’t want to decide for themselves which stocks or ETFs to buy, there’s a modern alternative: copy trading. This is particularly relevant for traders and active investors.
Copy trading means you automatically copy the trading strategies of experienced traders. When a successful trader opens a position, it is proportionally transferred to your account.
Practical steps:
| criterion | Copy Trading | ETF-Anlage |
|---|---|---|
| administrative effort | Minimal – automated | Minimal – once set up |
| Time required | High – to monitor traders | Low |
| Fees | 1-3% of profits | 0.04%-0.95% TER |
| Return potential | High (but also risky) | Moderate, reliable in the long term |
| For beginners | Probably not – too complex. | Better – simpler, more transparent |
| Regulation (Switzerland) | Choose FINMA-regulated brokers | Fully regulated |
The later you start, the more time you miss out on the power of compound interest. A one-year delay can cost you over CHF 20,000 in assets over 40 years. Rule of thumb: The best time to start is today.
Forget the stories of 20%-30% annual returns – that was possible in certain years on the stock market, but not consistently. A realistic long-term expectation is 5%-7% per year for balanced portfolios. That’s enough to build wealth.
Many young beginners automatically go all-in with 100% equity allocation – and then the market crashes. A more realistic approach: Start with 60-70% stocks and adjust over time.
Investing only in companies you know or like doesn’t diversify sufficiently. Better: A clear portfolio plan: e.g., 50% Swiss, 30% international, 20% bonds.
Even professional funds usually don’t consistently outperform the indices. Better: Accept that passive ETF investing works better over time than constantly switching stocks.
The opposite of panic selling: Some beginners see the market rising and think, “Now I’m too late”—and don’t invest at all. Correct: There is no “perfect” entry point. Regular savings plans help you avoid this problem.
Investing isn’t complicated – it just requires clear principles and discipline.
1. Start early: Compound interest is your strongest ally.
2. Build up an emergency fund: 3-6 months’ expenses in a savings account.
3. Diversify with ETFs and alternative solutions like copy trading: More affordable, broadly diversified, and reliable.
4. Don’t ignore fees: A 0.5% difference equals CHF 10,000+ over 30 years.
5. Stay long-term: Don’t confuse investing with gambling – let your money work for you.
About SwissBot: If you prefer a more active approach and find copy trading or automated trading strategies interesting, SwissBot is your partner. ETF savings plans aren’t enough for most beginners – contact us and we’ll be happy to advise you on automated trading.
