Investing doesn’t have to be complicated

Start by creating a financial plan to understand where you stand.

Make sure you have enough cash on hand to cover living expenses and unexpected costs. As a rule of thumb, keep an emergency fund equal to three to six months of expenses, and factor retirement planning into the equation. Once you’ve done that, you’ll have a clearer picture of how much you can afford to invest.

Ask yourself:

• How much do I need to cover my regular expenses?
• How much should I set aside for emergencies?
• Will my retirement benefits from the OASI (pillar 1), occupational pension plan (pillar 2), and private retirement savings (pillar 3) replace at least 80% of my final employment income?
• If not, how can I generate additional income with investments and save specifically for old age?

Once your financial plan is in place, you can develop your investment strategy. When it comes to portfolio performance, maintaining a long-term perspective is key.

Define the financial goals you want to achieve and set a realistic timeline for reaching them. Start by asking yourself a few key questions:

• What are your short- and long-term goals?
• For how long are you willing and able to invest your money?

Taking on more risk can increase your return potential, but it may also lead to greater fluctuations in the value of your investments.

Your risk profile is based on two factors:

• Your risk capacity: this reflects how much risk you can afford to take and how much loss you could absorb financially.
• Your risk appetite: your subjective tolerance for risk and market fluctuations.

The following questions can help you determine your risk profile:

• What level of return would you be happy with?
• Would you prefer to build wealth steadily, or are you willing to take more risk in pursuit of higher returns?
• Can you afford to take more risk?

Different asset classes and investment solutions respond differently to market developments. As a result, they offer different levels of risk and return potential.

Stocks and ETFs are generally suited to investors with a higher tolerance for risk and a long-term perspective. Investors seeking greater stability may prefer bonds or fixed-term deposits, even if that means accepting lower return potential. Gold is often viewed as a safe-haven asset during periods of market uncertainty.

Use the table below to compare the main asset classes at a glance. Once you have considered all of the variables, choose your preferred investment solution. Professional advice can help you make an informed decision.

Once you have chosen the right asset classes, it’s time to get started. It doesn’t pay to wait for the perfect moment.

To get started, you can invest independently with UBS key4 trading or build wealth gradually with a fund savings plan. Our investment solutions comparison can help you identify the option that’s right for you.

Give your investments time to work for you. Stay invested, even when markets experience temporary declines. Over the long term, return potential remains attractive, while frequent changes to your investment strategy can be costly.

However, you should still review your investments and goals regularly. Changes such as a new career, starting a family or pursuing a new goal can influence your strategy.