Investing money in Switzerland – Tips for 2025

Why investing money pays off

In times of low interest rates and rising living costs, a traditional savings account is no longer sufficient to preserve wealth, let alone increase it. Those who simply leave their money in their account lose real purchasing power due to inflation. This is exactly where investing money in Switzerland comes into play:

Through clever and broadly diversified investments, your assets can not only be protected, but also specifically built up. Whether you want to provide for your retirement in the long term, fulfil medium-term wishes or simply achieve financial independence. Investing money in Switzerland in 2025 is the decisive step towards achieving your financial goals. ETFs, sustainable investments and the tax-privileged pillar 3a offer particularly attractive opportunities today. Those who start early and invest disciplinedly will benefit from the compound interest effect in the long term, regardless of the current market environment.

4 reasons why investing money is important

1. Actively combat inflation with investments:

At first glance, a traditional savings account seems safe, but annual inflation causes your money to lose purchasing power. Without a smart investment in Switzerland, your assets can lose value in real terms. Investing money in Switzerland is therefore an important strategy for protecting and preserving your capital.

2. Benefit from the compound interest effect:

The earlier you start investing in Switzerland, the stronger the compound interest effect will be. You will not only receive a return on your invested capital, but also on the profits and payouts already generated, such as dividends. Long-term investing pays off, especially with regular savings plans such as ETFs or pillar 3a.

3. Put your money to work for you:

Instead of leaving your capital in your account, you can invest it in diversified investments such as shares or sustainable investments. This allows you to actively build your wealth and participate in economic growth. In Switzerland in particular, there are many digital opportunities to invest your money wisely.

4. Build wealth by investing money:

Long-term investing is crucial to achieving financial goals, whether it's retirement, buying a house or educating your children. A good investment in Switzerland helps you build a solid financial cushion step by step. Those who start early and remain disciplined not only ensure financial stability, but also greater independence in retirement.

Strategies for Swiss investors: How to invest your money wisely in 2025

If you want to invest your money successfully in Switzerland, you need more than just a savings account. In 2025 in particular, it will be crucial to pursue a smart investment strategy that enables long-term wealth accumulation while also taking individual financial goals into account. The following investment strategies for Swiss investors will help you invest your capital securely, effectively and with a focus on growth.

1. Strategic asset allocation: the foundation of every investment

Asset allocation determines 70–80% of investment success. Your assets are spread across various asset classes such as equities, bonds, real estate funds, ETFs, commodities and sustainable investments. In Switzerland, a good mix is crucial. So don't just invest in Swiss francs, but diversify globally. Diversification reduces risk and increases the long-term stability of your portfolio.

2. Buy and hold instead of market timing

One of the most successful investment strategies for Swiss private investors is the buy-and-hold principle: invest regularly and hold your investments for the long term. Studies show that market timing – i.e. actively buying and selling – rarely works. Those who invest consistently benefit from the cost averaging effect and reduce the risk of buying at the wrong time.

3. Monthly savings plans: investing systematically

Savings plans are a smart solution for beginners and experienced investors, especially in Switzerland. With an ETF savings plan or a pillar 3a solution, you invest smaller amounts regularly in broadly diversified index funds. This allows you to benefit from compound interest, offset fluctuations and build up solid assets in the long term. This also works with small amounts of money.

4. Investing money sustainably: environment and returns

Sustainable investing is becoming increasingly popular in Switzerland. ESG-compliant investments allow you to invest your money profitably and responsibly. Various platforms such as Selma Finance offer you targeted strategies for sustainable investing, often with low fees and a high degree of transparency.

5. Keep emotions out and stay disciplined

Many investors lose money because they act emotionally: selling in panic, buying when there is hype. On the other hand, those who pursue a clear investment strategy, invest regularly and show discipline remain successful in the long term. Tools such as robo-advisors help to avoid emotions and invest systematically.

How much money should you invest?

Now that you know why it makes sense to invest your money, the next question is: how much should you invest?

How much of your savings should you invest?

Before you start investing, it is important to build up a financial safety net. This safety net should cover your living expenses for 3 to 6 months. This will protect you from unexpected expenses and mean you don't have to rush to liquidate your investments.

Calculating your investment amount:

Investment amount = savings – safety net – planned expenses

You don't have to invest everything at once. Regular deposits, for example on a monthly basis, help to spread the risk and benefit from different market conditions.

The 50/30/20 rule for investments

A simple method for determining your monthly investment amount is the 50/30/20 rule. It helps you to allocate your income sensibly:

• 50% for fixed costs: rent, food, insurance and other necessary expenses.
• 30% for flexible expenses: leisure, hobbies, travel or eating out.
• 20% for savings and investments: This portion should go towards savings plans, retirement provisions and investments to secure your financial future.

Tip: Even small amounts are a good start. The important thing is to invest regularly and for the long term. Continuous investing minimises risk and maximises returns in the long term. Further information can be found here.

Investing money in Switzerland: An example of a simple and successful investment strategy

An ETF savings plan is one of the simplest and most effective ways to build long-term wealth in Switzerland. Let's assume you invest CHF 500 per month in a broadly diversified ETF. With an average annual return of 5%, which is a conservative, realistic average for global stock markets, the following asset growth will result over the years:

• After 1 year: You have paid in a total of CHF 6,000 and, thanks to interest and compound interest, you will have a final value of CHF 6,136. Your profit is already CHF 136.
• After 5 years: Your CHF 30,000 deposit will have grown to around CHF 33,907. A profit of CHF 3,907.
• After 10 years: You have invested CHF 60,000 and your portfolio is worth around CHF 77,641. A profit of CHF 17,641.
• After 20 years: A deposit of CHF 120,000 grows to around CHF 206,501. Your money has almost doubled, with a profit of CHF 86,501.
• After 30 years: If you invest consistently for 30 years, you will have paid in CHF 180,000. With an average return of 5%, your assets will grow to an impressive CHF 417,074. This corresponds to a pure profit of over CHF 237,000.

This sample calculation shows the power of compound interest, especially when investing regularly in an ETF savings plan in Switzerland. The longer your investment horizon, the more your assets will benefit from the growth effect. It is therefore worthwhile to invest money early on and consistently follow the most important tips. Here you will find a compound interest calculator to make your own calculations.

5 important tips for investing money in Switzerland

If you want to invest money successfully in Switzerland, there are a few basic principles you should bear in mind. Whether you are just starting out or already investing, these five tips will help you build long-term wealth and avoid common mistakes:

1. Diversification: Spread risk – avoid losses
   Never put all your eggs in one basket. Broad diversification of your portfolio across different asset classes (e.g. equities, bonds, ETFs, real estate funds) and geographical regions protects you from sharp fluctuations and minimises risk. In Switzerland, many people invest too heavily in domestic companies. This so-called home bias can make your portfolio vulnerable.
2. Discipline & timing: Don't get nervous
   It is normal for markets to fluctuate. If you think long term and pursue a clear investment strategy, you don't need to constantly intervene in the market. Market timing rarely works. Instead, the rule is: buy and hold. Disciplined behaviour when investing in Switzerland is crucial for success.
3. Invest regularly: Automatism instead of emotion
   An ETF savings plan in Switzerland is ideal for investing small amounts systematically. By making regular deposits, you benefit from the cost averaging effect and continuously build up your assets regardless of market fluctuations. This makes investing money a habit.
4. Minimise fees: keep more of your returns
   High management fees and hidden costs eat into your returns. Therefore, use low-cost ETF solutions or digital asset management (robo-advisors) in Switzerland that offer transparent fee models. Those who consistently reduce fees when investing money benefit enormously in the long term.
5. Cashbuffer: security first, then invest
   Before you invest, you should set aside a rainy day fund – about three to six months' expenses in an easily accessible savings account. This buffer protects you from liquidity bottlenecks and ensures that you do not have to accept losses by selling your investments if you need money at short notice.

These five tips form the foundation of any good investment strategy in Switzerland – especially for beginners who want to start investing in 2025 or optimise their existing strategies.

The 5 most common mistakes when investing money in Switzerland

When investing money in Switzerland, even experienced investors can make costly mistakes. However, many of these common mistakes can be easily avoided. Here are the five most common mistakes you should avoid when investing in 2025:

1. Waiting too long to invest
   The most common phrase: ‘If only I had started earlier!’ Those who keep putting off getting started with investing in Switzerland miss out on valuable time for the compound interest effect. You don't need to have a fortune to start investing. Even with just £100 or £500 a month, you can build up long-term wealth in Switzerland.
2. Misjudging the risk of an investment
   Many beginners are either too cautious and stick with savings accounts, or too risk-averse and put everything into volatile stocks or cryptocurrencies. Both can be problematic. A suitable investment strategy in Switzerland should take into account your risk profile, your goals and your investment horizon. Those who assess their risk realistically can invest more successfully and with greater peace of mind.
3. Market timing instead of strategy
   Attempts to find the perfect time to buy or sell often fail. Market timing is emotional and inefficient. It usually leads to higher costs and unnecessary stress. Instead, buy and hold and invest regularly via an ETF savings plan in Switzerland. This offers better return opportunities. Long-term investing almost always beats short-term speculation.
4. Investing money without a clear plan
   Many people invest without a plan. Successful investing requires a goal, a structure and a well-thought-out asset allocation. Good investment planning in Switzerland takes diversification, time horizon and costs into account. Those who take a systematic approach have a better chance of success when investing money in the long term.
5. Lack of diversification when investing money
   Putting all your eggs in one basket is risky, especially when it comes to investing money. If you don't diversify, you risk massive losses when the market fluctuates. Smart diversification when investing money means spreading your capital across different asset classes, countries and sectors. Whether it's Swiss ETFs, sustainable investments or pillar 3a. Broad diversification increases stability and reduces risk.

Comparing asset managers in Switzerland

Where should you invest your money in 2025?

Now that you know the basics and understand the importance of diversification, discipline and regular investing, one key question remains: which asset manager in Switzerland should you invest your money with? In 2025, you will have a choice between traditional banks, digital brokers and modern robo-advisors in Switzerland. Here are the five most popular providers of digital asset management in Switzerland:

Banks – traditional, but expensive

The traditional point of contact for investments. Banks offer a wide range of investment options, from shares and bonds to funds.

✅ Advantages: Personal advice, direct support, diverse product range.

❌ Disadvantages: High fees and often hidden costs, less flexibility.

Robo-advisors – digital, automated and affordable

Robo-advisors are digital investment platforms that manage your portfolio automatically. Algorithms are used to create investment strategies and optimise them on an ongoing basis.

✅ Advantages: Low fees, easy to get started, little effort required.

❌ Disadvantages: No personal support

Broker – maximum control, minimum costs

Ideal for DIY investors who want to buy and sell stocks, ETFs, bonds or precious metals independently. You are responsible for your own strategy and all decisions.

✅ Advantages: Low costs, full control over your investments.

❌ Disadvantages: Requires specialist knowledge and time investment, no advice available

Asset managers – personalised, but expensive

Personalised support for people with a lot of money. An asset manager develops a personalised investment strategy based on your financial situation and goals.

✅ Advantages: Tailored advice, comprehensive support

❌ Disadvantages: Very high costs, usually a lot of money required

Selma – innovative, personalised and affordable

Selma combines the advantages of robo-advisors and personal financial advice. After a brief chat, Selma analyses your financial situation and risk tolerance and creates a personalised investment plan based on this information. You can invest your money starting from as little as CHF 2,000. You can also invest in an ETF savings plan.

✅ Advantages: Low fees, minimal effort, individually tailored portfolio

❌ Disadvantages: Limited customisation options

Conclusion – Where should I invest my money?

The decision of where and how to invest your money in Switzerland should be carefully considered. The right asset manager in Switzerland depends heavily on your individual goals, your risk profile and your desired level of control. We recommend that you evaluate the advantages and disadvantages listed above yourself and make the best choice for you personally.

Checklist before you start: What you should consider before investing money in Switzerland

The question of all questions: how to invest money? Before you start investing in Switzerland, solid preparation is essential. Whether you want to invest money in Switzerland for the first time or optimise your existing plan, this checklist will help you review all the important factors to ensure that your wealth accumulation in 2025 is structured, sustainable and goal-oriented:

1. Check your financial basis – do you have a cash buffer?

Before you invest, you should set aside a nest egg of three to six months' expenses in a savings account. This will protect you from unexpected expenses and mean you don't have to sell your investment at the wrong moment. Liquidity before investment is a key principle of investing.

2. Define your investment goals and time horizon

Do you want to save for retirement, buy property or build up assets for your children? Your investment goals determine your strategy. If you want to invest in Switzerland for the long term, you can focus more on equities or ETFs, while short-term goals require more security.

3. Determine your personal risk profile

How do you deal with market fluctuations? A realistic risk profile is crucial for choosing your investment strategy in Switzerland. There are various tools that can help you assess your risk tolerance (e.g. here).

4. Determine the amount and frequency of your deposits

Consider how much you can invest each month. With an ETF savings plan starting at CHF 100 or CHF 500 per month, you can already invest regularly and benefit from the cost averaging effect. Alternatively, one-off investments are also possible.

5. Choose a suitable platform or asset manager

Compare providers of digital asset management in Switzerland. Pay attention to fees, user-friendliness, minimum amounts, and whether you want to invest yourself or seek advice. Platforms offer different models, from sustainable investing to tax-optimised pillar 3a investments.

6. Define diversification & strategy

Decide how you want to build your portfolio, e.g. through Swiss ETF investments, equities, pillar 3a, commodities or real estate funds. Diversification protects your assets and is one of the most important factors for success when investing money in Switzerland.

7. Think long term and remain emotionally stable

The biggest profits are not made through frantic trading, but through patience. Investing for the long term, weathering market cycles and sticking to your plan are the keys to successful investing in Switzerland.

You can find more useful tips on what to look out for when investing money here. Or check out UBS's guide to investing money in Switzerland.

Conclusion: Investing money in Switzerland in 2025 – invest wisely now and reap the rewards in the long term

Investing money successfully in Switzerland in 2025 will be easier, more flexible and more transparent than ever before. With a clear goal, the right strategy and digital providers such as Selma, you can build up your assets in a targeted manner even with small amounts – e.g. CHF 500 in an ETF savings plan – you can build up your assets in a targeted manner.

The important factors are: regular investing, broad diversification, low fees and a realistic risk profile. Those who start early, remain disciplined and think long term will benefit from the compound interest effect and lay the foundation for financial security.

It's best to start investing your money today.

Frequently Asked Questions: Investing Money in Switzerland

What is the best investment in Switzerland in 2025?

There is no single “best” investment. Your ideal investment depends on your risk profile, time horizon, and financial goals. For safety, fixed-term deposits or bonds are suitable. For higher returns, ETFs, stocks, and digital wealth managers in Switzerland are often better choices. Diversification is key to minimizing risk.

How does a fixed-term deposit work in Switzerland?

With a fixed-term deposit, you invest your capital with a bank for a set period. The interest rate is fixed, offering planning security. The term usually ranges from 6 to 12 months. Many banks require a minimum investment of CHF 50,000.

What are the advantages of fixed-term deposits?

Fixed-term deposits offer security and stable interest rates. They are ideal for investors who want to invest their capital in the short term without being exposed to market fluctuations. The risk of losses is low, as long as the investment is held until maturity.Was ist das magische Dreieck der Geldanlage?

What is the magic triangle of investing?

The magic triangle describes the relationship between security, liquidity, and return. These three goals are in conflict with each other. Those aiming for high returns usually need to accept more risk and lower liquidity. Conversely, safe and flexible investments often yield lower returns. The key is to find the right balance that suits your personal risk tolerance and financial goals.

What is the best way to invest CHF 15,000?

The best approach: diversify broadly by investing in one or more ETF savings plans in Switzerland. Alternatively, invest the money in stages to reduce market timing risks. Important: think long-term, invest regularly, and don’t leave all your money in a savings account.

What is the difference between interest and return?

Interest is fixed income you receive, e.g. from fixed-term deposits or bonds. Return includes all earnings from an investment, including capital gains from stocks or real estate. While interest is predictable, returns can fluctuate – depending on market developments and price changes.

How much should I invest per month?

That depends on your goals and income. A general guideline: 10 to 20% of your monthly income. Even small amounts are worthwhile if you invest them regularly. This way, you benefit from the cost-average effect and reduce the risk of bad timing.

Where can I get the highest return?

The highest return potential over the long term lies in stocks and ETFs, especially if you invest broadly and globally. Historically, global stock markets yield average returns of 6–8% per year – significantly more than savings accounts, bonds, or fixed-term deposits in Switzerland.

If you regularly invest in an ETF savings plan – for example, CHF 500 per month – and follow a long-term strategy, you can benefit from compound interest and significantly grow your capital over time.

How much money should I invest?

It’s wise to keep an emergency fund of 3 to 6 months of expenses in a savings account. After that, you can distribute your remaining wealth across different asset classes, such as stocks, bonds, and real estate. Your personal risk profile helps determine the right allocation. The higher your risk appetite, the higher your share of equities can be.

What does it cost to invest money?

Costs can arise from management fees, custody fees, or transaction costs. These fees can be high, especially for actively managed funds. ETFs are generally more cost-effective.

What does diversification mean?

Diversification means spreading your money across different asset classes and markets. This reduces risk because losses in one area can be offset by gains in another.

What happens if the stock market crashes?

Short-term losses are normal in a market crash. If you invest long-term and are well diversified, you can usually ride out such phases and benefit from the eventual recovery.

Should I invest my money sustainably?

Sustainable investments take ecological, social, and ethical criteria into account. If these values matter to you, you can invest specifically in sustainable ETFs or funds.