Investing for beginners in Switzerland: The honest beginner’s guide
August 25, 2025
4 min read
Investing for Beginners in Switzerland: The Honest Starter Guide
You know you should invest. Everyone says so. But you've never started — because you don't know enough, you don't have enough money, or you're waiting for the right moment. This guide dismantles all three excuses. No jargon. No 50-page theory. Just the truth — and a clear path forward.
CHF 396,000
Difference after 30 years: investing (7%) vs. savings (0.75%) at CHF 500/month
36%
Purchasing power lost on a savings account over 30 years at 1.5% inflation
CHF 1
Minimum savings plan amount at arvy — per month
Contents
01The calculation that changes everything
CHF 500/month in a savings account at 0.75% (typical 2026). After 30 years: contributed CHF 180,000, balance ~CHF 200,000.
Same CHF 500/month invested in diversified equities at ~7% historical average. After 30 years: contributed CHF 180,000, portfolio ~CHF 610,000.
Difference: CHF 396,000 — just from investing instead of saving. Same amount, same discipline. The difference is called compound interest: your returns earn their own returns.
What happens if you DON'T invest
Inflation. At 1.5%/year, your savings account loses roughly 36% of its purchasing power in 30 years. Your CHF 200,000 will only buy what CHF 128,000 buys today. Not investing isn't the safe option — it's the guaranteed way to lose money in real terms.
Calculate yourself: Compound Interest Calculator and Inflation Calculator.
02The 3 prerequisites — before you invest
1. Pay off consumer debt (except mortgage)
Credit card debt at 7%? Personal loans? Pay those off first. No investment reliably beats 7%.
2. Build an emergency fund: 3–6 months of expenses
Typically CHF 15,000–25,000 in a savings account. This money is not invested. It's your insurance against job loss or unexpected bills.
3. Only invest money you won't need for 5+ years
Invested money can temporarily drop 20–40%. That's normal — as long as you don't have to sell at the bottom.
All three met? You're ready.
You don't need a finance degree. You don't need CHF 50,000. You don't need a "perfect moment." You need these three prerequisites — and the courage to start today instead of tomorrow.
03Investment types in 60 seconds
| Type | Return | Risk | For whom? |
|---|---|---|---|
| Savings account | 0.5–1% | ~Zero | Emergency fund |
| Bonds | 1–3% | Low | Short horizon |
| Equities (diversified) | 5–8% | Medium–High | Long-term (10+ yrs) |
| Real estate | 3–5% | Medium | High capital needed |
| Crypto | ??? | Very high | Speculative |
For most beginners: diversified equities, held long-term. Over 10+ years, historically the most reliable way to build wealth.
04What is an ETF? (Really simply explained)
Imagine buying 1,000 companies worldwide: Apple, Nestlé, Samsung, LVMH. That would be extremely expensive. An ETF (Exchange Traded Fund) does exactly that for you — in a single product. You pay once and automatically own tiny shares in hundreds or thousands of companies.
The alternative: arvy doesn't invest in a broad ETF but concentrates on ~30 quality companies. You own only the best, not everything. Which approach fits whom: see Quality Investing Explained.
05The 5 most common beginner mistakes
1. Waiting too long
5 years of waiting = CHF 281,000 less at retirement. The True Cost of Waiting →
2. Waiting for the "right moment"
Market timing doesn't work. The S&P 500 is at an all-time high on 8% of all days. All-Time High: Invest or Wait? →
3. Panic selling
Missing the 10 best trading days halves your return. They come in the middle of crises. 10 Best Days →
4. Ignoring the real costs
TER is just the tip. FX markups, tax statements, behaviour gap — true costs are 3–5× higher. True Cost of Investing →
5. Starting too complicated
You don't need a broker, 5 ETFs, or monthly rebalancing. You need a savings plan and a standing order. Done.
06The shortest path to your first savings plan
Step 1: Choose an amount. CHF 100/month? CHF 500? Even CHF 1. Consistency matters more than size.
Step 2: Choose a provider. arvy: 10 minutes onboarding, FINMA-regulated, all-in from 0.69%, ~30 quality companies. Or an ETF robo-advisor. Or DIY (more effort, more hidden costs). The Fee Comparison Calculator shows the difference.
Step 3: Set up a standing order. 3 minutes. Done. From now on, everything runs automatically.
The most important takeaway from this entire article
It's not a question of whether you should invest. It's a question of how much it costs you that you haven't. Every day without investing is a day compound interest isn't working for you. Start today. The rest follows.
Ready for the deep dive? Investing with arvy: The Complete Guide — the roadmap for everything after the first step.
07Frequently asked questions
How much money do I need to start investing in Switzerland?
At arvy: from CHF 1/month. No minimum deposit. Consistency beats the "right" amount.
Isn't investing too risky?
Short-term, yes — equities can drop 20–40%. Long-term (10+ years), diversified portfolios have historically always delivered positive returns. The biggest risk is not investing: inflation erodes your savings.
Pillar 3a or free investing first?
Both have advantages. 3a: immediate tax savings (~CHF 2,177/year at 30% marginal rate). Free investing: more flexible. Ideal: both in parallel.
What's the difference between ETF and arvy?
ETF: 1,500 companies passively. arvy: ~30 quality companies, actively filtered at comparable cost. For beginners, both are good starting points.
Do I need to manage my portfolio daily?
No. With arvy: 10 minutes setup, then 0 minutes/month. Everything runs automatically.
Are capital gains tax-free in Switzerland?
Yes — for private investors, capital gains on securities are tax-free. Dividends are taxed as income, but a well-structured portfolio generates most returns through (tax-free) price gains.
What happens if the market crashes?
Short-term paper losses. Long-term recovery — historically always. Your savings plan automatically buys cheaper after a crash.
Further reading
The hardest step is the first. And the most important.
You don't need to know everything. You don't need to pick the perfect moment. You just need to start — and then stay the course. Compound interest takes care of the rest.
Written by Thierry Borgeat, reviewed by Patrick Rissi, CFA and Florian Jauch, CFA. Returns based on historical averages and not a guarantee. Last updated April 2026.
Disclaimer: For educational purposes. arvy is a FINMA-supervised asset manager with a CISA licence. Imprint & Legal Information.
