Investing in funds

To optimally grow your wealth, each Swiss Franc needs to be invested successfully. Investment funds allow you to enjoy all benefits of a professional wealth management – even with smaller amounts of capital.

Idea and advantages of investment funds

The principle of diversification

The idea of investment funds lies in bringing together the money of many individual investors and investing it profitably. Even with small amounts, an individual investor can thus participate in expertly managed collective assets and profit from further advantages.

Graph: How investment funds work

Translation:
Anleger = investors
Gelder = monies
Fondsvermögen = fund assets / net asset value
Anlage in = invests in
Aktien = equities
Obligationen = bonds
Geldmarkt = money market
Ausschüttung = dividend payout
Reinvestition = reinvestment

Advantages of investment funds

Flexibility: You have the financial resources that you have invested in investment funds at your disposal at any time.
Risk diversification: Your investment risk is markedly reduced because you place your money in many securities simultaneously in an investment fund.
Transparency: The value of your fund share is determined and published on every stock-exchange business day.

Risk and return
Fund investments are basically not free of risks. They too are subject to the laws governing the market. Anyone aiming for a higher yield, must accept higher risks. The chances of enhancement in value go hand in hand with the risks of depreciation in value.

The investment success is closely linked with the specific investment policy. Investment funds invest in various capital markets and are exposed, as a consequence, to comparable price fluctuations.

An increased risk exists particularly in the case of equity investments or investments in foreign currencies. In order to be able to survive any possible price fluctuations unharmed, the investor should have a longer-term investment horizon. The past has proved many times that the risk of loss is reduced, and the yield potential increased, in line with extending the investment horizon. But this must not obscure the fact that past yields are no guarantee for future developments in value.