Can you be rich with 500,000

Investing Money in Switzerland: A Beginner's Guide

If you want to invest your money, you will quickly find that there are almost as many options in Switzerland as there are cheeses in a well-stocked supermarket. With such a selection you naturally ask yourself: Where can I invest my money without risk? And which option is the best for me?

And that is exactly what makes investing money pretty complicated for beginners.

Whether you want to invest your money in real estate or are interested in sustainable stocks in Switzerland; Whether you are looking for the best ETFs in Switzerland, invest your money in funds or whether you are simply interested in how to best invest your money in Switzerland: Our guide gives you an overview of the most important investments.

With these tips you can decide for yourself which type of financial investment is best for you, where you can get the best interest when investing and how you can invest your money safely.

Here we go!


When is the right time to invest money?

Before you start investing your money, you are probably wondering when is the right time to do it. Should you start right away or should you wait until the economic situation has changed?

As you might have guessed, the question of the right time is unfortunately not that easy to answer. As an investor, you naturally want to buy your investment at low prices in order to then benefit from price increases. But when is a price low?

Exchange experts observe the market closely and can make forecasts - but one cannot be absolutely certain that these will actually occur. An example: at the beginning of the 2000s, internet companies were thought to be insecure investments and advised against investing in companies like Google or Amazon. If you had decided to buy shares when Google went public, you would be a billionaire today, around 15 years later.

So you see, the right time to invest is often only recognized in retrospect.

But there is also good news: For a long-term investment, timing is not quite as relevant as returns are less volatile.

Choosing the right stock can therefore feel like playing darts blindfolded. We therefore advise you to diversify your investment and divide it up between different industries, countries and regions in order to minimize risks.

And remember: time helps compensate for fluctuations!

And you can also see it this way: the earlier you start investing, the longer your money has time to work for you. So if you're wondering whether to start investing now or in a year's time, the correct answer is of course "Now!".

More important than the situation on the stock market is that the right moment has come for you to tie up your money for several years. For example, if you want to invest in stocks, you need to have at least CHF 2,000 available, which you can do without for at least five years. If you feel that you may need your money in the short term and that long-term investment would cause you sleepless nights, now may not be the time for you to start investing.

When it comes to investing money, it is also important to know that it is never too early to do so. Even if you start with a small amount, you will find that your money increases through compound interest and thus has a big effect on your wealth. For this it is essential to know your own needs and expectations in order to be able to find the right investment strategy.

Let us assume, as an example, that you want to start investing in your early 40s in order to save for your own pension - even then, the investment horizon is still around 25 years. Our experience from the past shows that you can count on a diversified investment on the stock market with income of up to 6% per year.

It is only important that you take your money out of the bank account and start investing, as the money there will lose value in the long term at the usual interest rates of 0.01%.

We at Yova will of course be happy to help you create a personal savings plan that will help you find the right strategy for your needs.


Overview of different types of systems

Before you start investing your money, you must first know where to invest money. Real estate, gold and silver, stocks, bonds, ETFs and cryptocurrencies? All of these investing options are covered in this article.

In order to give you a good overview, we have selected the respective advantages and disadvantages of the investment types. It is also particularly important that you know where you can safely invest your money - apart from your bank account. We also look at what it means to you when you leave your money in your bank account, as a lot of people do just that!

What are the best tips for investing money in Switzerland? If you want to know what we recommend, just jump straight to the end of the article.


Investing money in gold and silver

Is it a good tip to invest money in gold and silver? The fact is that people have invested in precious metals since ancient times. Even today gold and silver are popular and safe investments. Anyone who is currently thinking about an investment should be patient, however, because the gold price is currently at a six-year high.


  • Longevity: Gold and silver have historically proven to be a safe way to invest your money, as they maintain a fundamental value over the long term.
  • security: A physical bullion is considered a safer option than the "paper market" for gold and silver.


  • costs: If you want to invest your money in gold, you should not only pay attention to the purchase price but also consider the storage and insurance costs for precious metals.
  • No real yield: Investments in precious metals create no value and precious metals have no real return. The investment lives on the hope that the price will rise.
  • Effect on people and nature: The mining of gold and silver does not always take place under conditions that are good for people and nature.


Invest money in funds

If you want to invest your money in mutual funds, you should first understand what a mutual fund is and what happens to your money.

A mutual fund bundles your money together with the money of other investors and manages it on behalf of all investors. A fund is therefore a so-called 'collective investment'. A fund manager and many other middlemen monitor the fund and make buying and selling decisions for you.

There are so many funds out there that consideration could fill many more articles. We limit ourselves to the most important points here.


  • Diversification: Funds generally spread the risk over several individual investments that are combined in the fund, thus minimizing the risk of losses.
  • liquidity: With many funds (not all!) You can access your money quickly and normally have your money back within seven working days.
  • Return: Warren Buffett's strategy has shown that passively managed funds can outperform actively managed investments.


  • Hidden fees: Due to their complex and multi-layered structure, funds are a means of hiding fees. The latest research has shown that investor funds are often up to four times more expensive than the investor originally assumed.
  • Question mark in sustainability: With funds you cannot control what exactly you invest in. The fund manager can change the selection at any time. And many "sustainable" funds are not really sustainable on closer inspection.


Investing money in stocks

If you invest your money in stocks, you have the opportunity to participate directly in the success of a company. Because a share makes you a co-owner of the company. Digitization has made the stock market easier and cheaper for small investors. Many people don't see stocks as a way to safely invest their money - but you should reconsider that. Because with a good mix of different stocks in which you invest your money for the long term, you can keep the risk of losses low.


  • Income: Equities offer attractive long-term profit prospects in relation to the risk.
  • liquidity: You can sell your shares at any time and have your invested money back in your account within a few days.
  • Easy and uncomplicated: In contrast to derivatives and funds, there are no complicated interrelationships between you and your investment. When you buy shares, you directly own part of the company - without complicated intermediate structures.
  • Full transparency & control: You see every single company you invest in and you can control exactly what your money is invested in.
  • Sustainability: Due to the high degree of control, you can invest in companies that are in line with your values. At the same time, you can make sure not to support any companies or topics with which you do not agree (e.g. weapons or climate change).


  • Share prices are subject to fluctuations (Volatility): The values ​​of stocks move up and down every day. If you want to invest money in stocks, you should therefore ensure that you have a diversified portfolio and that the money is tied up over the long term.
  • Risk of losses when investing in the short term: Due to the fluctuations in prices, stocks can lead to losses in the short term. A longer investment horizon is therefore advisable for equity investments. At Yova, we recommend at least 5 years.


Invest money in bonds / bonds

Do you want to know how you can safely invest your money in Switzerland and what interest you get for it? One option is to invest in government bonds or corporate bonds.

You can call these either bonds or bonds - but that means the same thing, namely loans. You are effectively “lending” money to a state or a company. You will receive an annual interest payment for the term of the bond, and at the end of the term you will get your money back. The difference between bonds and loans is that you can trade or resell bonds.

If you resell a bond, the buyer then receives the interest payment and also the subsequent repayment. In general, government bonds are considered an investment in which you can invest your money without risk.


  • Risk and fluctuations: Bonds are typically less exposed to fluctuations than other financial investments and are therefore in principle a good option if you want to invest your money securely. How risky they are, however, depends on who issued the bond and therefore has to repay the loan.
  • security: In principle, Swiss bonds are considered to be very secure, as Switzerland is considered a highly reliable borrower who always repays its debts.


  • difficulties: Bonds usually require high minimum investment sums, which discourages many beginners from investing their money in bonds. However, you can avoid these difficulties with bonds by purchasing shares in a bond ETF that combines many bonds into one fund.
  • Income: Bonds currently have a comparatively low return on other investments.


Invest money in Exchange Traded Funds (ETFs)

ETFs (Exchange Traded Funds, or listed funds) have grown immensely in popularity recently. Many investors are currently looking for the best ways to invest in ETFs in Switzerland. ETFs are usually designed to track an index like the S&P 500 or the SPI.


  • Diversification: Many ETFs are designed to have a good level of diversification. This promises you good returns and a low risk for the investment.
  • Ownership: You only own a share in a fund and not the actual shares.
  • costs: Because they are passively managed, ETFs are far cheaper than traditional funds.


  • Complexity: Sometimes fund managers buy certain "options" and "swap stocks" rather than just buying stocks themselves. This is called "synthetic replication". As a result, ETFs can become highly complex financial products with risks that are difficult to assess.
  • Question mark in sustainability: Unfortunately, the same applies here to ETFs as to funds. Compared to funds, you have a little more transparency as to which companies your investment is based on (since ETFs map indices). But you cannot exclude or add individual companies. And unfortunately "sustainable" ETFs often do not keep what they promise and are very often full of nasty surprises.


Investing money in real estate

In view of the rising rental prices, it is no wonder that more and more people in Switzerland are investing their money in real estate. There is nothing wrong with giving up a rented apartment in order to invest your money in a house in which you would like to live yourself.

However, if you want to invest your money based on the income, you should make a few important preliminary considerations before you take the step and invest in a property in Switzerland.


  • Low volatility: Real estate prices in Switzerland are comparatively stable, although they have fallen over the past two years.
  • Cheap accommodation: If you live in the property you have bought yourself, you cannot turn it into money, but in the long term you save by investing in housing costs.
  • Crisis-proof investment: Even if there is an economic crisis, nobody can take away your own property. This is especially true when all mortgages are paid off and there is no rush to sell - otherwise the losses can get high.


  • High costs: Real estate in Switzerland is expensive (an average of CHF 6,900 per square meter) and large down payments are required. In addition to the actual price, there are also steep ancillary costs such as brokerage fees and real estate transfer tax.
  • liquidity: If you need money quickly and want to sell your property for it, you first have to find a buyer. This can take several months - or in extreme cases even years.
  • High risk Due to the usually high share of external financing: If a property is financed with 20% equity, this equity has disappeared when the real estate prices correct by a fifth. This can easily be done, as numerous real estate crises in the past have shown time and again.
  • Lack of diversification: Often a large proportion of your own assets are in your own home. Sometimes even the pension fund is withdrawn for the house purchase. This means that all eggs are in the same basket, and in the event of a real estate crisis, a large part of the assets may be lost.
  • Low yields: Land has often become so expensive in Switzerland that the rental income in relation to the purchase price is well below 5%. Relative to the associated risk, this is a low return prospect.
  • Tax aspects: Depending on the form of financing, real estate can be tax-unattractive because of the taxation of the imputed rental value.
  • conservation: The maintenance of the building and dealing with the tenants does not take care of itself and is the responsibility of the owner. Compared to other investments, real estate means a high administrative burden.


Investing money in cryptocurrencies

Are cryptocurrencies such as Bitcoins, Ether, XPR or the new Facebook currency Libra a temporary hype or an investment of the future?

The opinions of the experts differ greatly on this issue. Some people have become millionaires by investing their money in cryptocurrencies, but many others have lost their savings.

All in all, it's an interesting field to watch. At the moment, however, it is still very similar to the gold rush in the wild west of the 19th century!


  • Easy and uncomplicated: Transactions are quick and easy, mainly because they are subject to few regulatory requirements.
  • Exciting technology: Decentralized networks are an interesting alternative to conventional banking models, as they can increase security.


  • Big fluctuations: The market for cryptocurrencies is like a roller coaster ride!
  • Questionable providers: Not all cryptocurrencies are considered reputable.
  • No real yield: Similar to precious metal investments, an investment in crypto currencies does not deliver any real return, but lives solely on the hope that the price will rise.


Invest money in your own bank account

Strictly speaking, the bank account is not a form of investing.But we wanted to mention this option because many people, by default, simply leave their savings in their bank account and think they are covered by it.


  • Guarantees: If your bank goes bankrupt, you have government coverage of up to CHF 100,000.
  • Access and Security: If you know you will need your money in the next year or two, it's a good idea to leave it in the bank.


  • Negative returns: There is almost no income on the bank account. As a rule, Swiss banks currently pay 0.01% interest at best. The prices in the world rise much faster ("inflation"). The bottom line is that you lose money.
  • Hidden costs: Banks are sometimes masters at hiding bank fees. So make yourself aware in advance of what your bank will be charged for.


How can you best invest your money?

At Yova, we believe that for the majority of people, investing in stocks is the best form of investment. It is important that you invest in a diversified portfolio of at least 30 to 40 company stocks that are spread across different countries, sectors, industries, company sizes and currencies.

Depending on your age, the length of time you want to invest and other factors, we recommend investing some of your money in government bonds.

But what about the strongest argument against stocks: What if the stocks of the companies you've invested in crash and all your money is lost?

That is an important point!


Investing money for the long term

In February 2018, the Dow Jones (one of the most important American stock indices) suffered the largest loss in one day in the history of its existence. Our advice to investors has been to hold their stocks and not sell them in a panic. In fact, the market had returned to its starting level within a few weeks.

The example shows that not every crash is a disaster. Especially not for investors who take a long-term stake in the market.

That is why we recommend our customers to invest their money for a period of at least five years. Market fluctuations, highs and lows are completely normal. They mainly affect those who are looking for a quick buck.


Diversification as a principle of investing money

The example of the Dow Jones also shows us why diversification is important. Although some crises are felt in the global economy, many crises are focused on specific industries or regions.

Imagine investing 100% of your money in technology companies just before the internet bubble burst at the beginning of the millennium. Or 100% of your investment would have gone into Brazilian stocks before the recent recession hit them. In both cases, you would have lost a large part of your money in a short period of time.

It is better to diversify your investments broadly. This protects you from the risk of financial shipwreck in a crisis in individual industries or regions.

That brings us to another frequently asked question from our customers:


Should I invest my money in Swiss stocks or in stocks of foreign companies?

We all know that Switzerland is one of the safest places for investors. The Swiss stock market is supported by the country's strong economy, low inflation, low national debt and a consistently low unemployment rate.

However, Switzerland's status as a “safe haven” also has disadvantages. In times of crisis, many foreign and local investors take the opportunity to invest their money in “safe” Switzerland.

What does that have to do with you? When many foreign investors invest, the Swiss franc and the stock markets can sometimes be overvalued, especially in times of crisis. And that's not just an imaginative doomsday scenario.

It happened in the same way back in 2012. At that time, the Swiss National Bank took the most dramatic action in its history: It pegged the value of the Swiss franc to the euro to ensure that the rise could be slowed.

What we learn from this is that you shouldn't just invest your money in Swiss companies. Foreign companies should also make up part of your investment in order to minimize the risk of losses.

At Yova, we recommend that investors keep part of their investments in Swiss stocks, but also buy stocks from all over Europe and America in order to ensure a high level of diversification. This prevents your investment in a certain country from being exposed to unnecessary risks.

That brings us to another frequently asked question ...


How Much Money Should I Invest?

When it comes to investing in the stock market, there is no default value. You can start as you want: (almost) as small as you want or as big as you can. Many people believe that you have to be rich to invest your money in stocks. This is totally wrong!

We recommend our customers CHF 2,000 as a minimum investment. This is generally the amount you need to get a sufficiently diversified portfolio of 30-40 stocks.

You don't have CHF 2,000? At Yova you can start with CHF 500 if you set up a savings plan. When your account reaches CHF 2,000, we will start investing your money for you according to your profile and your preferences.


How can I start my investment in stocks?

Do not worry. We have gone to great lengths to make investing easy for you.

You can create your own diversified equity portfolio - completely free of charge and without obligation.

If your portfolio convinces you, you can start your investment. To do this, start the account opening in your portfolio view. After you have transferred your investment amount to your trading account, we will take care of all the technical details on your behalf. This also includes the monitoring of your system and the annual rebalancing.


Summary: The best tips for investing in Switzerland

Finally, we have summarized the most important things for you in a nutshell. So you can easily keep track of all information.

  • Information is important: Different ways of investing money have different advantages and disadvantages. Above all, the risk, the income, but also the question of how quickly you can get your money in case of doubt are important. Last but not least, the sustainability of investments is an important issue for many investors.
  • Stocks offer good returns: At Yova, we believe stocks are the best form of investment. Stocks offer comparatively good returns with controllable risk. You can start with small amounts and have quick access to your investments when you need them.
  • Sustainable investment made easy: Stocks make sustainable investing easy. In contrast to other forms of investment such as funds or ETFs, with stocks you can precisely control which companies you invest in and which you don't. In this way, you can ensure that you only invest in companies that live up to your values ​​- without compromising on income.
  • Diversification brings stability: Depending on your financial goals and your risk profile, you can split your money into stocks and bonds. Bonds offer more stability over the long term, but less income.

With our online generator, you can easily choose sustainable and socially responsible investment topics that are particularly important to your family. Always diversified, of course, and taking your risk profile into account. Your Yova strategy is completely personalized and designed in such a way that you achieve market returns.

To ask? Feel free to write us a message. We look forward to hearing from you!

A new way of investing: You support companies that share your values. Sustainable, socially responsible - without compromising on earnings.