The 20 Most Important Questions About Investing in Switzerland — Honestly Answered
April 12, 2026
10 min read
The 20 Most Important Questions About Investing in Switzerland — Honestly Answered
You want to invest but don't know where to start? Here are the 20 questions every investor in Switzerland asks — answered honestly, directly, and from the perspective of an asset manager who invests alongside you. No banker jargon. The standard answer plus the perspective no bank advisor will give you.
All 20 Questions + Bonus
- How do I get started?
- How much money do I need?
- Best investment for beginners?
- Pillar 3a or free investing?
- Is investing risky?
- ETF or active fund?
- How does a savings plan work?
- Best time to invest?
- Invest during a crash?
- Can I lose everything?
- What about taxes?
- What returns to expect?
- How long should I invest?
- Lump sum or savings plan?
- How much do fees matter?
- Which mistakes to avoid?
- What is diversification?
- Should I buy individual stocks?
- Which app or broker?
- Invest for my children?
- Bonus: Crypto — yes or no?
01How do I start investing in Switzerland?
Step 1: Emergency fund (3–6 months of expenses). Step 2: Invest your Pillar 3a in securities. Step 3: Invest freely — ideally through a monthly savings plan.
Most people think investing is complicated. In reality, it's a three-step process. First, you need a financial cushion — so you don't have to sell when the next dentist bill arrives. Then you use Pillar 3a, because it saves you taxes immediately and lets your capital grow tax-free. Only after that do you start investing freely.
The savings plan is the decisive mechanism: you invest a fixed amount automatically every month, regardless of the market. No timing, no emotion, no hesitation.
02How much money do I need to start investing?
From CHF 1. Consistency matters more than the amount.
CHF 100 per month over 30 years at 7% historical average returns grows to roughly CHF 122,000. That's the power of compound interest. The trick: don't wait until you have "enough." Start small, stay consistent, increase when you can.
Calculate it yourselfWhat will your monthly contribution become over 10, 20, or 30 years? The compound interest calculator shows you the power of consistency.
03What is the best investment for beginners?
A monthly savings plan into a broadly diversified equity portfolio — with low fees and without needing to check it every day.
For most beginners, the combination of consistency, diversification, and low costs is what matters. Whether you do this through an ETF or an active quality fund is less important than simply getting started.
The arvy perspectiveWe offer a savings plan from CHF 1/month — into a globally diversified quality portfolio that we manage ourselves. Skin in the Game: Thierry, Patrick, and Florian invest CHF 100k+ in the same portfolio. This isn't marketing — it's conviction.
04Should I start with Pillar 3a or invest freely?
In most cases: Pillar 3a first. Immediate tax savings (20–40%) plus tax-free growth.
Pillar 3a is one of the few genuine "no-brainers." You save taxes immediately on the contributed amount — depending on where you live and your income, 20–40% on the maximum contribution (CHF 7,258 for employees in 2026). And the capital grows tax-free until withdrawal. After maxing out your 3a, invest freely on top.
05Is investing in Switzerland risky?
In the short term, yes. In the long term — for broadly diversified portfolios — the bigger risk is not investing at all.
Stocks can fall 30% in a single year. Over 20+ years, a broadly diversified equity portfolio has historically delivered positive returns in virtually every rolling period. In that same time, inflation has eroded your cash by 20–40%. The "safe" savings account is the surest path to losing purchasing power.
The arvy perspectiveWe are first and foremost risk managers. If you lose 10%, you need 11% to recover. At 30%, you need 43%. At 50%, you need 100%. This asymmetry is why risk management is the most important half of investing.
06ETF or active fund — which is better?
Low-cost ETFs beat most active funds. That's true — on average. But the problem isn't active management itself — it's bad active management.
Around 80% of active funds underperform their benchmark after fees. Fact. Low-cost ETFs are a solid foundation for many investors. What the standard answer omits: most active fund managers hold too many stocks and essentially replicate the index — minus fees. That's structurally impossible to win. Concentrated quality selection with genuine tracking error is something fundamentally different.
The arvy perspectivearvy manages a concentrated equity fund with ~30 quality companies — not an index copy minus fees, but a deliberate deviation from the index. Available through Raiffeisen, Swissquote, UBS, and ZKB (Valor 130614478). Historically, the best periods for stock picking have followed concentration peaks — like the 1970s and post-2000.
Calculate it yourself — the arvy calculators
Abstract knowledge only becomes relevant when you apply it to your own situation. Free, no sign-up required.
07How does a savings plan work?
You invest a fixed amount automatically every month — regardless of the market. Fewer emotions, a better average price, maximum simplicity.
A savings plan is the most elegant solution to the biggest problem in investing: yourself. Automation beats willpower. When prices are high, you buy fewer shares; when prices are low, you buy more. Over the years, this produces a favourable average cost.
08When is the best time to invest?
The standard answer: now. The more honest answer: it depends on what you're buying.
"Time in the market beats timing the market" holds as a general rule for broadly diversified portfolios and savings plans. If you invest monthly, the timing is irrelevant — the savings plan smooths everything out.
The arvy perspectiveFor individual stocks, a different rule applies. Thierry's "Good Chart" methodology uses technical signals — relative strength, accumulation, linearity, new highs — to find the right entry point. A strong story without chart confirmation is too early. Chart momentum without story substance is hype.
09Should I invest during a crash?
Yes — but with a clear head and a plan, not with panic buys.
Your savings plan invests during a crash automatically at lower prices — more shares for the same amount. For individual stocks, stricter rules apply. Not every fallen stock recovers. The question is: do you own a tennis ball (bounces back) or an egg (shatters)?
10Can I lose everything by investing?
With a single stock: yes. With a broadly diversified portfolio: virtually impossible.
A single company can go to zero — Kodak, Enron, Wirecard. That's why you invest broadly. A global portfolio can fall 30–40% in the short term, but a total loss has never occurred historically. What can happen: a lost decade of flat returns if you enter a heavily overvalued index at the wrong time.
11What taxes do I pay on investments in Switzerland?
Capital gains: tax-free. Dividends: taxed (income tax). Wealth: annual wealth tax (~0.1–0.5%).
Switzerland has one of the most investor-friendly tax regimes in the world. Capital gains are tax-free for private investors. Dividends are subject to income tax. Your wealth is subject to an annual wealth tax that varies by canton.
The arvy perspectiveThis tax asymmetry is a structural advantage for growth-oriented strategies. Companies that reinvest their profits internally rather than distributing them are more tax-efficient for Swiss private investors. An often-overlooked lever.
12How much return can I expect?
Long-term, roughly 7% per year for global equities. Historical average over 100+ years — not a guarantee.
Swiss equities have delivered a solid 7.7% in Swiss francs over nearly a century (Pictet study). Around 7% is the long-term average for companies in global equity indices. Individual years swing between −40% and +40%. Returns are the price you pay for enduring volatility.
13How long should I invest for?
At least 10 years. Better 20+. Best: as long as possible.
Over 1 day, investing is a coin flip. Over 10 years, a statistical probability. Over 20+ years, a mathematical near-certainty. CHF 100/month over 18 years at 7% grows to roughly CHF 43,000. Over 30 years to CHF 122,000. Over 40 years to CHF 264,000. The second half delivers more than the first — exponential growth.
14Lump sum or savings plan — which is better?
Statistically, a lump-sum investment wins more often — but only if you can handle the swings psychologically. For most people: savings plan.
In roughly two thirds of cases, investing everything at once beats spreading it over months. But seeing a 20% loss right after a lump-sum investment and staying calm — most people can't do that. The savings plan is psychologically more realistic and protects you from the biggest investor mistake: selling during a crash.
15How much do fees matter when investing?
Enormously. 1% higher fees can cost you CHF 100,000+ over 30 years.
Fees are the only factor you can control 100%. 1% sounds like nothing — but over 30 years, it eats a dramatic share of your returns. On CHF 500/month at 7%, 1% higher fees cost you roughly CHF 150,000 over 30 years. And many providers advertise low management fees but charge transaction costs, custody fees, currency conversion spreads, and tax statements separately.
16What mistakes should I avoid?
The four most expensive: starting too late, selling during a crash, paying too much in fees, chasing trends.
The most expensive mistake is the first — not getting started. Every year of delay costs more than any single bad investment decision. The second most expensive: selling during a crash. The third: ignoring fees. The fourth: chasing the latest hype.
The arvy perspectiveThere's a fifth mistake most advisors won't mention: thinking conventionally. Buying the same stocks as everyone else, holding the same index — and then wondering why you get the same mediocre average. The only way to outperform the crowd is to think differently from the crowd.
17What is diversification — and how much do I need?
Diversification spreads your money across many companies, countries, and sectors — to reduce risk without drastically cutting returns.
The standard answer: the more diversified, the safer. That's conceptually true — but in practice, today's indices aren't as diversified as they appear. The top 10 stocks account for 36% of the S&P 500. That's a concentration bet disguised as broad diversification.
The arvy perspectiveTrue diversification isn't the number of stocks — it's the independence of positions from one another. 500 tech-heavy holdings are less diversified than 25 carefully selected companies from different sectors with different drivers.
18Should I buy individual stocks?
For beginners without experience: no. For disciplined investors with a quality focus: it can be the superior strategy.
Without a methodology and discipline, you'll likely underperform the index. But quality selection — concentrated portfolios of companies with durable competitive advantages, high ROIC, and intact chart structure — has measurably outperformed over decades. The key: you need a methodology you apply consistently. Without a system, individual stock investing is gambling.
19Which app or broker is the best in Switzerland?
There's no universal answer — but the most important question you need to ask: "What are the total costs per year, all-in?"
The Swiss market offers different paths: DIY brokers (Swissquote, Interactive Brokers — cheap, but you do everything yourself), robo-advisors (True Wealth, Selma — automated, mid-range pricing), traditional banks (expensive, often with hidden costs like retrocessions), and investment apps.
Most providers advertise low management fees — but then charge transaction costs, custody fees, currency conversion spreads, tax statements, and rebalancing separately. The real question isn't "which app?" but "what do I actually pay, all-in, per year?"
The arvy perspective — all-inclusive, one feeAt arvy, everything is included in a single all-in fee. No hidden costs, no surprises. Investing plus learning in one:
Management0.69–0.89%
Product costs0.15–0.22%
TransactionsIncluded
Currency exchangeIncluded
Tax statementIncluded
Dividend reinvestAutomatic
Weekly EducationEvery Friday
100+ articles & calculatorsFree
Skin in the GameCHF 100k+ own money
From CHF 84/year on CHF 10,000 invested. No minimum. Savings plan from CHF 1/month. Equity fund available through Raiffeisen, Swissquote, UBS, and ZKB (Valor 130614478). Knowledge is the best investment — and at arvy, it's part of the product.
20Should I invest for my children?
Yes — the earlier, the better. 18 years of compound interest is a massive head start.
CHF 100 per month over 18 years at 7% returns grows to roughly CHF 43,000. CHF 200 per month to roughly CHF 86,000. The majority doesn't come from your contributions — it comes from compound interest. And the real lever: if your child doesn't need the money at 18 and lets it stay invested for another 22 years, that CHF 43,000 grows to well over CHF 200,000. 18 years of head start is exponential.
★Bonus: Should I invest in crypto?Bonus
arvy currently does not invest in crypto — but we don't rule it out for the future.
Bitcoin, Ethereum, and other cryptocurrencies are a real phenomenon — not a passing fad that will disappear. Blockchain technology has legitimate use cases and is here to stay. The question isn't "is crypto real?" but "does it belong in a disciplined investment strategy?"
Our honest assessment: crypto has no fundamental cash flows (no revenue, no profits, no ROIC). It cannot be evaluated using the classic quality criteria that define our investment philosophy (moat, organic growth, free cash flow generation). Volatility is extreme — drawdowns of 80% are historically normal. For investors who want to consciously allocate a small portion (5–10%) of their portfolio to crypto and can handle the volatility, that's a personal decision. But it should never be the core of a long-term strategy.
The arvy perspectiveWe actively monitor the crypto market. If we see in the future that integration into our strategy makes sense — for instance through regulated Bitcoin ETFs as a diversification building block — we're open to it. For now, we prioritise companies whose value we can analyse fundamentally. Quality you can measure, not speculation on narratives.
What disciplined investors take away from this page
Most of these answers sound simple. They are — conceptually. Execution requires patience, discipline, and emotional control. Start. Stay the course. Keep fees low. Control your emotions. Think long-term. Five sentences — one investor's lifetime. If you've only read this page, you know more than most beginners. If you take the first step now, you're ahead of everyone still waiting.
Written by Thierry Borgeat, Co-Founder of arvy. Reviewed by Patrick Rissi, CFA and Florian Jauch, CFA. All three are CFA Charterholders and invest CHF 100k+ in the same portfolio as arvy clients. Last updated: April 2026.
Disclaimer: This article is for general educational purposes and does not constitute personal investment advice. Historical returns (7% long-term average) are not a guarantee of future results. Fee comparisons are based on publicly available information (as of April 2026). arvy is a FINMA-supervised asset manager with a CISA licence (Art. 24). Imprint & Legal Information.
