Tips on How to Get Started Investing In Switzerland

Goodbye, Savings

First and foremost, if you want to invest that money in Switzerland, you should stop using a bank account. It's because cheap money, fees, and inflation eat away at your savings as soon as they accumulate beyond what is needed to cover monthly expenses. In recent years, average interest rates offered by Swiss banks to their clients have hovered around 0.01%. The problem is that inflation is outpacing wage increases, meaning your savings become less valuable over time.

Regularly Invest

That's a fantastic supplement to our initial recommendation. Why not instantaneously invest the spare cash you have in your checking account every month? Set up a signed agreement so that a certain amount of money is automatically invested from your monthly paycheck. You can avoid the temptation to spend the money this way. You can put money to work for you without giving it a second thought every month.

Never Put All Your Hopes on a Single Outcome

We know that figuring out how and where to start investing can be challenging at first. The third piece of advice will guide you in making this choice. To help you find your way through the Swiss investor maze, we have compiled a summary of the various investment types available in Switzerland (publish more here). We urge you to spread your money around no matter what route seems most promising. But, you shouldn't rely on chance. Suppose you decide to put your money into the stock market, for instance. In that case, you should spread your bets by purchasing shares of active companies in various industries and locations. Bonds are another investment option to consider.

Be Mindful Of Hidden Costs

There is nothing worse than signing a contract and then realizing you didn't read the fine print and are now responsible for unexpected fees. People are frequently taken aback by the after-tax cost of their fund investments. It may end up costing multiple times as much as you initially anticipated. The estimated return does not always account for all fees, which presents an additional hidden risk when investing in ETFs. For this reason, the final result may fall short of expectations.

Remember Your Values

Many modern investors seek out ethical investment opportunities. Your investments should reflect those priorities if you care about living sustainably and being a responsible citizen. Remember that not all sustainable funds exclusively invest in socially and environmentally conscious businesses; due diligence is required before committing money to any fund that makes such claims.

Conclusion

While it is true that investment adviser activities do not necessitate a license from FINMA, several provisions of the FinSA must still be met regardless. Any deviation from these guidelines may result in monetary penalties. Contact Judith Raijmakers or Sandra Zysset if you have any inquiries regarding the responsibilities of investment advisers conducting business in Switzerland. Before beginning operations, investment advisors, asset managers, and brokerage houses must register with FINMA. Portfolio management, but not investment advice, does not necessitate a license.