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More return than the Bank account

When it comes to savings, many Swiss prefer to be on the safe side and keep your money in the Bank account. However, low interest rates, increasing fees and Inflation, ensure that the value of the Savings is dwindling Bank account. Reto Spring, a Partner of the company, Academix, and President of the financial planners Association of Switzerland, warns, therefore, even before that: "The biggest risk is to hoard their own wealth in the Bank account – because that's where it comes currently to a guaranteed money destruction." Instead, he recommends that for long-term savings account goals with the Bank, but to save with Exchange Traded Funds (ETF).

ETFs are exchange-traded funds, which track an Index, such as, for example, the SPI (Swiss Performance Index). For investors, these funds have the advantage that they are broadly diversified. So if stock value of a single company is rattling in the basement, or the company goes bankrupt, losing investors, only a little, because the Fund tracks the prices of a variety of companies. Or to put it differently, the investor buys the ETF with the needle in the haystack, but a proportion of the entire Haystack. Further advantages of the ETF, depth charges, high transparency and liquidity, allowed for a rapid withdrawal are usually. The fees are comparatively low, since no specialist is required to oversee these funds active form instead of passive index funds.

investors should long-term

However, ETF is not without risk: If, in an economic downturn give in to all the courses, to protect itself, the shares of many different companies prior to substantial losses. plan It is conceivable, that it comes quickly to a downturn. However, even with the temporary loss of go-diversified equity bring plants over a period of 10, 20 or more years, an annual average rate of return of about 5 percent. The Figures from the past show. Therefore, it is recommended to plan with ETF in the long term, and only invest money that can be long omitted. Who's buying the used savings a year later, for example, for a car or a house renovation needs, and you risk unnecessary losses.

For the layman is the entry in the ETF, for various reasons, is not easy. So a seemingly endless number of products, which makes it difficult to gain Overview and to make a selection. In addition, the information of the consultant's own in-house Bank is often not helpful, since banks prefers to sell other products that will help you earn more money. In General, these are actively managed funds, where the fees are approximately between 0,5 and 2 per cent. For comparison: In the case of the passively managed ETF, the fee is often between 0.2 and 0.4 percent – is decreasing all the time. This difference falls in the long-term Save considerably to the weight. Who, for example, 1 percent is one part, has a starting capital of 20,000 francs, after 30 years, for that reason alone, 27000 francs on the account. Not yet, the transaction costs, the can also vary greatly, are taken into account. These will be covered here, however, is of less weight, as they are incurred in the case of a long-term savings goal rare.

Reto Spring is angry about banks that want to sell to their customers, only actively managed funds. Not only are the fees lower, but also the returns are not in the least because in the case of passive index funds such as the ETF higher. The studies confirm. "In nine out of ten cases, these perform better," says Spring, and advises not to insist at the Bank adviser to the ETF. If there is no other way, he recommends to switch to another financial institution or an independent financial adviser who is compensated like Spring after expenses, and not from the sale of expensive products benefits.

can Anyone open wants, regardless of his Bank to buy ETF, at various online vendors, a vault. According to the comparison website money country.ch offer Swissquote, Strateo and Saxo Bank for online trading with ETF in Switzerland the most favorable terms. For example, the rate of account opening and account management at Swiss free. For the Depot customer to pay for private 0,025 percent and at least 15 up to a maximum of 50Franken – per quarter. When you buy the ETF from a selection of currently around 1200Produkten the transaction is 9Franken fee regardless of the investment amount. With such a custodian, interested parties can acquire home to your Computer independently the ETF and sell. Who decides for yourself, you must inform yourself. Under the Fund designation information on content, fees, course development, and more are to be found on the Internet. Helpful websites, among others justetf.com and etfinfo.com are in addition to the online providers themselves.

criteria for the choice of the appropriate Fund

the decision criteria for investors to be able to also the size of the Fund, the currency or the replication. The volume of a Fund provides for a certain degree of planning security: the Case of small funds, the risk is greater that they disappear rapidly from the market. In the case of funds in foreign currencies, the risk of currency losses – on the other hand, securing investors, mostly with a low fee charge. Finally, there is a physical and synthetic replication. The physical variant means that a Fund buys the securities in the Index directly, while in the other variant, Yield spreads are hedged. Synthetic replication is difficult to understand and therefore, especially for beginners, is not recommended.

The voluntary Provisioning with the pillar 3a account is a good to have money in the ETF to create. Because most of the time it is a long-term investment until Retirement. In addition, there is increasing 3a deals with a greater proportion of passive index funds.

ETF shares, bonds and Gold?

For ETF there exist various asset classes. Nicolas Peter of Aquila, a service platform and a Bank for asset managers, announced as an Alternative to the popular shares, ETF's in precious metals such as Gold or bonds. As the bandwidth for a "balanced" ETF-Portfolio Nicolas Peter announced shares of around 45 per cent equities, 5 to 8 percent in Gold, 25 to 35 percent bonds and some liquidity. Such diversification in different asset classes reduces the volatility and ensures that in the case of a stock market crash, the losses are lower. Of real estate funds, the expert advises, currently, on the other hand: "after all, with a premium of about 30 percent, on average, the premium is currently significantly above the historical average."

Created: 24.11.2019, 17:19 PM

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