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Created on 03.04.2019

Start investing when you’re young

Many people make the mistake of waiting too long before they start investing. Between the ages of 20 to 30 is a particularly good time to invest money. After all, some particularly interesting investment opportunities are available if you have a long investment horizon. The following four points can help you.

Between the ages of 20 and 30 in particular, there are a number of things that seem more important than investing: an education or further training, travelling, your career, enjoying life, making material purchases, etc. Somebody who is only just starting to earn money often wants to fulfil their dreams straight away rather than investing in funds or shares. They are probably partly right: before you start investing, you should invest in your own education, make sure you can support yourself or set aside reserves for a rainy day. And you should still have enough left over to treat yourself from time to time. 

The early investor catches the worm

However, young people in particular think that you have to be rich to become an investor. This isn’t the case: private investors can earn good returns over a longer period, even with small amounts. This helps them to build up their assets – particularly if they start early. 

Anyone who seizes the opportunity to invest small percentages of their own money at the age of 20 is making a smart decision: the longer the investment horizon , the more they stand to gain from their investment. This applies to both retirement provision and financial investments. If you want to become an investor while you are young, you should take into account the following points.

Provide security and prepare for retirement the smart way

Pillar 3a can represent your first step towards becoming an investor: each year you should pay in the maximum amount that is deductible from your taxable income. You should also consider whether you would like to get more from your retirement planning with a retirement fund. A particularly long investment horizon is of course ideal in this case as well. For many people, this may not sound very exciting – but it is an important, simple way to protect your financial future whilst ensuring maximum returns and tax savings.

Invest instead of saving at a low interest rate

Instead of leaving the money left over at the end of each month in your savings account and earning a low rate of interest, it’s worth investing in funds saving plans , traditional funds  or even ETFs .

Funds saving plans

These investments are particularly suited to investors who want to invest small amounts on a regular basis. You can pay as little as CHF 20.– into a funds saving plan each month, for example, and benefit from developments in the markets. This is not a bad opportunity for people who want to invest some money for the first time. 


Here you have the opportunity to cater for your personal preferences (e.g. by investing in sustainable products) and to choose funds based on your strategy. Equity funds are an interesting option for investors with a long investment horizon, for example. This makes them particularly suitable for people who start investing very early. Although the risks are higher than with funds that invest only in bonds, the risk can usually be balanced out with a good diversification strategy and a suitably long investment horizon, and you generally enjoy higher returns. Funds also offer a choice between distribution and reinvestment funds. Reinvestment funds invest the profits again directly. In the case of distribution funds, the returns are paid out to the investor. This means that you benefit directly from the compound interest effect with reinvestment funds. Consequently, the money you invest grows at a disproportionately high rate. Alternatively, the returns earned from distribution funds can also be invested again directly in new fund units thanks to an automatic reinvestment order.

ETF (exchange traded funds)

ETFs represent a good alternative to funds. These are funds traded on the stock exchange.


Shares are another interesting investment option. The important thing is to distribute your assets between a variety of securities to cancel out the potential negative performance of individual equities and diversify your custody account.  Dividends will then be paid out regularly, for example once a year – if any dividends are due at all – and represent an additional income for investors.

Plan your life to stay flexible

Your individual aspirations can also have an impact on your investments and your finances – if you intend to change your personal circumstances in the near future, you should take this into account in your investments wherever possible. Do you want to buy your own home in your early 30s? Are you thinking of emigrating? Do you hope to start a family early? Make sure you have some liquid capital available. 

Acquire knowledge, because knowledge can be turned into cash

Get more information! It’s worth finding out about investments as early as possible, even if you never dreamed of getting to grips with financial matters until now. “I don’t have time and I’m not interested” should never be used as an excuse. Do not put off the subject of investment until tomorrow, as tomorrow can soon turn into 10 or 15 years in which you could have built up a small fortune with little effort and capital. 

Standard of living, an education, reserve, retirement planning – you need enough money for all these things. If you have any left over, you should invest at least some of it in financial investments. With a long investment horizon and an appropriate investment strategy, this will allow you to generate returns  that are impossible to achieve from interest rates on savings. So don’t hesitate anymore, investing is not just something for the rich. Even with small amounts, you can become an investor and build up your assets.

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