Investment strategy: how to put your wealth on the right track

A smart investment strategy is more important than ever in 2025. Understanding investment strategies helps investors seize opportunities while managing risk. The context: persistently low interest rates and inflation around 2% are eroding the purchasing power of cash savings. At the same time, stock markets and new digital offerings provide attractive return opportunities. As a result, many Swiss investors are turning to ETF investments and other wealth management strategies rather than leaving their money idle.

But volatile markets and an overwhelming range of products present challenges. In this environment, a well-thought-out strategy pays off – enabling you to build wealth in a way that is flexible, security-conscious and return-oriented.

The foundations of investment strategies

Before diving into specific strategies, it’s worth taking a look at the basics of portfolio management. Every investment strategy rests on three pillars: diversification, risk profile and investment horizon.

• Diversification: Never putting all your eggs in one basket is a core principle of any successful strategy. By spreading investments across different asset classes, regions and sectors, you reduce the risk of loss while maintaining the potential for returns.

• Risk profile: Consider how much risk you can and want to take. Your personal risk tolerance determines the allocation between defensive assets (e.g. bonds, cash) and more aggressive assets (e.g. equities). The higher the equity allocation, the greater the potential fluctuations in value – and the more important it is that your strategy matches your risk profile.

• Investment horizon: Time matters. Money you won’t need for another 15+ years (such as for retirement) can be more heavily invested in equities, since short-term downturns are typically balanced out over time. With a shorter horizon (e.g. 3–5 years), the portfolio should be more conservative to avoid major losses shortly before withdrawal. Thinking long term generally pays off: those who start early and stay invested benefit from compounding and long bull markets, which historically last longer than bear markets.

• Active vs passive investing: Another key consideration is whether to invest actively or passively. Active strategies aim to beat the market – typically through a fund manager who selects individual securities and makes timing decisions. This can work, but it comes with higher costs and risks. Passive strategies simply track a market index (e.g. via ETFs) and avoid stock picking. They’re usually far more cost-effective (active funds often charge 1–2% per year, while many ETFs charge less than 0.2%) and often deliver similar net returns, since fees eat into active performance.

Popular investment strategies in Switzerland

1. Long-term investing with ETFs

Many Swiss investors rely on exchange-traded funds (ETFs) to invest broadly and cost-effectively. These funds provide access to global markets in a single product and represent a passive approach to long-term wealth building. The buy-and-hold principle is especially popular: investing regularly over time without reacting to short-term market fluctuations.

2. Core-satellite strategy with sustainability focus

Another widely used model is the core-satellite approach, where a broadly diversified core portfolio is complemented with targeted additions. Sustainable investments are often part of the mix. While the “core” focuses on stability and diversification, the “satellites” allow room for personal accents – such as investments in ESG funds or specific future-focused themes.

3. Retirement-focused investing (pillar 3a/3b)

Private pension planning plays a key role in long-term wealth accumulation in Switzerland. Pillar 3a offers tax benefits for contributions up to a defined limit. Pillar 3b allows more flexible saving beyond that. Combining both pillars helps structure your financial goals throughout different life stages.

4. Digital solutions in portfolio management

Technology-driven tools like robo-advisors or digital investment platforms now offer easy access to structured investment solutions. They help manage portfolios automatically – often based on personal inputs like investment horizon and risk profile. These solutions can be particularly helpful for beginners, as they bring transparency and discipline to the investment process.

Adapting to market conditions

Defining an investment strategy is an important starting point. Equally relevant, however, is reviewing it over time – especially when market conditions or personal circumstances change. Below are a few common observations from practice, illustrating how investors can respond to different situations.

Market cycles: bull and bear markets

Financial markets don’t move in straight lines, but in cycles. During rising phases – so-called bull markets – portfolios may perform above average. Some investors stay true to their original structure, especially when certain asset classes outperform others. Others use such periods to reassess and rebalance their portfolio.

In downturns – bear markets – prices fall, which can be challenging. Long-term investors often ride out such periods without changing their strategy. In some cases, however, it makes sense to adjust the risk structure. Many continue to invest regularly, seeing this as a way to smooth out market fluctuations.

Changes in personal circumstances

Life events such as marriage, starting a family, career breaks or approaching retirement can have a significant impact on financial goals, liquidity needs, or risk tolerance. Many take such milestones as an opportunity to revisit their strategy – for example, adjusting time horizons, asset allocation or liquidity reserves.

Long-term focus with regular check-ins

Practical experience shows that having a long-term perspective can help investors maintain clarity – whether markets are rising or falling. Regularly checking if the investment structure still aligns with personal goals can be beneficial. Support tools or automated solutions can simplify this process.

Note: The examples and considerations mentioned here are for informational purposes only and do not constitute investment advice. If unsure, consider seeking professional guidance.

Case studies

Finally, a look at some practical examples that show how different investment strategies can be implemented in Switzerland:

Case study 1 – ETF investing with a long-term focus

Mr M. (35) began a monthly savings plan in ETFs in 2020. He invests consistently in broadly diversified products, regardless of market movements. Even during temporary downturns, he stays invested. Over the years, his portfolio performs well, benefiting from market recoveries and dividend income. As he holds the securities long-term, he pays no capital gains tax – since in Switzerland, private individuals are generally exempt under certain conditions. This illustrates how a systematic approach can pay off over time.

Case study 2 – Structured wealth management with advice

Ms L. (48) inherits a sum and opts for a mix of professional advice and personal involvement. She has a mandate with a bank based on a pre-defined profile and a separate account where she makes decisions jointly with her adviser. In periods of uncertainty – such as in 2020 – she sticks to her strategy. The combination of professional oversight and personal flexibility gives her both control and peace of mind.

Case study 3 – Integrated pension planning with tax efficiency

Mr and Mrs B. plan their retirement together with a long-term view. They fully use their pillar 3a options, gaining annual tax advantages. Mr B., as an employee, contributes the maximum amount, while Mrs B., self-employed, can contribute more. They also invest in pillar 3b to allow for greater flexibility. Additionally, they build a separate portfolio for mid- to long-term goals. This diversified approach combines tax, timing and strategic benefits.

Case study 4 – Independent investing using digital tools

Mr S. (29) manages his investments using various digital platforms. He regularly buys ETFs via a neo-broker and contributes to a securities-linked pillar 3a account. He also uses a robo-advisor for part of his portfolio, which is tailored to his risk profile. Several apps help him keep track of his assets. After two years, he confirms that everything is working as intended. This example highlights how tech-savvy investors in Switzerland can pursue their goals independently, supported by digital tools.

Conclusion: Building wealth in Switzerland – flexible, digital and personal

Whether through ETFs, sustainable funds, pension solutions or digital tools – Swiss investors in 2025 have more options than ever to shape their financial future. The key is not a perfect strategy, but one that fits your goals and risk profile.

Long-term thinking, diversification and discipline pay off. Those who start early, invest regularly and adapt when needed build a strong foundation for financial freedom.

Start implementing your strategy today with digital tools and expert support.