Invest Money in Business-There are various ways to invest money in Business in Switzerland. If you want to learn more about this, you can check out our Website Work Publishing article A Guide to Swiss Investment Options, where we have already cover the pros and cons of each investment option in Switzerland.
Here we present the most popular variants once again so you can get an overview of how you can invest your money in Switzerland.
Table of Contents
Invest Money in Business Gold
A recent study by the University of St. Gallen show that the Swiss are particularly keen to invest their assets in gold: around two-thirds of those surveyed consider gold to be a sensible investment, and one-fifth stated that they intend to invest in gold shortly.
Gold is consider a safe investment that retains its value over a long time. However, with this form of investment, one must bear in mind that storage and insurance costs are incurred for a gold bar.
Since precious metals do not create a real return, you have to hope that the price of gold will rise. However, if right investing is essential to you, you should also be aware that mining precious metals harms people and the environment.
Invest Money in Business Real Estate
The Swiss like to invest their money in real estate, either as an investmentHow to Make a Cryptocurrency Investment? or as their own home. But real estate prices are high; therefore, houses and apartments often must be finance mainly by borrowing. This, in turn, poses a risk for you.
Let’s say you buy a house with 20% equity. If real estate prices then drop by a fifth, for example, in a real estate crisis, your capital is gone. Since you probably have to invest a large part of your money in buying real estate, all eggs are in one basket.
We, therefore, advise you to diversify your investment. As a result, fluctuations or crises in one sector can be compensated for by others.
Anyone who nevertheless decides to invest in the real estate market should also be aware that the prospects for rental income about the purchase price are well below 5% due to the high land prices.
You also often have to put part of the income you earn from a rental property into the management and maintenance of the house and ensure that your property is not empty.
Invest Money in Business Stocks
If you want to invest your money in companies, you can do this through shares and thus become a co-owner of the company. Shares offer you the chance to participate in the success of a company.
This ensures that the investment is in line with your values and that you do not support companies whose core values and principles do not align with yours. If you want to build your stocks, you must understand beforehand how to manage your investment risk. You also have to deal with issues such as transaction fees and taxes.
Be aware that the stock market is volatile, and stock prices change daily. Therefore, we guide you to invest your money for at least five years to even out these fluctuations.
However, if you are dependent on your money due to an emergency, you can sell the shares at short notice and usually have the funds transferred to your account within seven working days.
Invest Money in Business Mutual Funds
With a fund, you and thousands of other investors invest not just in a company but in a bundle of different stocks, bonds, or other assets. Fund managers manage these mutual funds, and you have no control over exactly what your money is invest in.
A significant disadvantage of funds, however, is that you often have no insight into the exact costs of the investment due to the complex structure. This can make the system more expensive for you than initially assumed.
Conclusion:
Mutual funds and index funds can offer consistent returns on your investment that are higher than those from savings accounts. Additionally, the diversification offered by index funds and mutual funds can help protect your company from the dangers associated with purchasing individual stocks and bonds.
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