Fund facts and investment strategy

Basic information for getting started easily

A fund combines many small asset holdings into one large pool. Fund managers manage the fund assets according to a set strategy, which varies from fund to fund, by investing in various securities and asset classes, such as money market investments, bonds or shares. Thanks to this diversification, the invested assets are at a lower risk than, for example, direct investment in bonds or shares.

  • Possible with smaller amounts

    You can also invest with lower amounts and smaller assets. This allows you to benefit from opportunities of returns which are generally higher than interest rates on savings.

    Diversification

    The fund assets are invested in various securities and asset classes (and in varying currencies where appropriate). This means that all your eggs aren’t in one basket.

    Liquidity

    You can opt in or out at any time.

    Transparency

    As an investor, you know where and how your money is invested.

    Protected investments

    Funds offer an effective form of protection for investors and the fund assets are protected even if the investment company files for bankruptcy (segregated assets).

  • Your investor profile forms the basis for successful financial investment and is made up of the following elements.

    Risk capacity

    The less you rely on your assets to meet your financial obligations, the greater your financial independence and, by extension, your risk capacity.

    Risk appetite

    The larger the fluctuations in the rate that you are willing to accept, the higher your risk appetite.

    Regular investment strategy checks

    If your assets situation, risk capacity or risk appetite change, we recommend that you modify your investment strategy accordingly.

  • The 80/20 rule

    Invest 80 to 100% of your investment amount in an asset allocation fund – this is known as your basic investment. Use the remaining amount (maximum 20%) to set priorities. This means you can put more emphasis on short-term trends.

    Basic investment

    The basic investment (at least 80% of the amount invested) forms the foundation of a successful fund investment. Asset allocation funds are well-suited to basic investments. At PostFinance, bond and domestic equity components are passively managed in asset allocation funds (inexpensive management fees). Foreign equity components are actively cared for by several fund managers following the multi-manager approach (solid performance for low overall costs).

    Set priorities

    Would you also like to set priorities in addition to the basic investment? If so, add specific funds to your investor profile, e.g. equity funds, which focus on the performance of certain companies, sectors, regions or topics, such as sustainability. The proportion of these priorities should not form more than 20% of the entire amount invested.

  • The basis for a successful investment is your personal investor profile, which will help you find the right funds. And don’t forget our five golden rules for a successful investment strategy:

    Invest today for success tomorrow

    It is important that you are clear about your personal risk appetite and capacity, as well as your investment horizon. Determine your investor profile online or arrange a consultation.

    All a mystery to you? Leave well alone.

    Make sure you understand what you are purchasing. A fund combines many small asset holdings into one large pool. Fund managers manage the fund assets according to a specific strategy. Funds from PostFinance have a simple structure and are easy to understand.

    Think it over instead of diving right in

    Keeping emotions in check can lead to success. Set out a long-term strategy and stick to it. However, it may be sensible to revise your investment strategy from time to time or if your circumstances change.

    Invest continuously

    Fund prices fluctuate and it is difficult to pick the right moment for a major investment. For this reason, we advise against investing all your money at once, particularly larger amounts. The optimum solution A Funds saving plan can be used to continuously invest smaller amounts.

    Benefit from low costs

    Commissions and other fees reduce your profit. With PostFinance, the costs are moderate and there are no account fees.

    Don’t put all your eggs in one basket

    Otherwise, making a mistake could be disastrous. Broad diversification and consideration of different markets reduce the risk considerably.

    Keeping your cool will always pay off

    Often, a poor position is kept for too long or a good one is sold too quickly. Be rational. With a long-term investment strategy, an approach is defined that you should also stick to in uncertain times and situations. However, it may be sensible to revise your investment strategy from time to time or if your circumstances change.

  • Individual purchase: for ad hoc investment

    With an individual purchase, you invest a specific amount in a selected fund or purchase a specific number of units. Individual purchase is suitable for ad hoc investment. You can purchase additional units with subsequent purchases.

    If you start with an individual purchase and a higher sum, we recommend you divide it into instalments. This will avoid the entry risk and reduce fluctuations.

    Funds saving plan: invest regularly

    With a Funds saving plan, you invest regularly in financial markets, build up your assets systematically and benefit from the cost averaging effect. You can alter the amount and periodicity (fortnightly, monthly, every 2 months or quarterly) at any time.

    When the rate is low, you will automatically purchase more fund units; when the rate is higher, you will purchase fewer fund units. Over a longer period of time, an average price emerges and you avoid the risk of fluctuations.

    Systematic approach to success (simulation)

    With a funds saving plan and as little as 100, you can invest money and build up your assets.

    When do we recommend starting a funds saving plan?

    A funds saving plan is always advisable if you want to make systematic and regular investments in funds and therefore reduce risk. Depending on your financial means, you can also invest in funds with individual purchases and increase your assets with a funds saving plan. The funds saving plan or individual purchase will generate higher returns, depending on market developments and point of entry. However, it must be noted that it is difficult to predict future trends. The funds saving plan helps you to reduce the risk of choosing the wrong moment to invest. Often, it makes sense to invest in a combination of both purchase types.

    The benefits of a funds saving plan

    • Reduced risk: by making inpayments through a funds saving plan, you reduce the risk of your investment because you offset price fluctuations in the long term (cost averaging effect).
    • Flexibility: you can increase, reduce or suspend your inpayments at any time. You can also close your funds saving plan at any time and sell the units at the current price.

    Who is a funds saving plan suitable for?

    • For anyone who wants to invest money regularly.
    • For anyone who wants to build their assets systematically.
    • For anyone who wants to invest at least CHF 100 (or the equivalent in a foreign currency) on a regular basis.
    • For anyone who would like to invest easily and professionally and reduce risk compared to an individual purchase.

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