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Grow your wealth

Steady Growth. With safe ground under your feet.

Long-term investing has become increasingly popular in recent years for good reason. Those who invest for the long term reduce their investment risk and create a solid foundation for constant growth. However, some widespread misconceptions persist among investors. Time to debunk them.

Three misconceptions about investing

Cash is safe

Before investing money in stocks, bonds or other asset classes, many people hesitate for one simple reason — they could lose money. Yes, that's true. Investing money can lead to losing money. But at the same time, this is happening to everyone saving money in a bank account. Even if your account balance doesn't change, inflation ensures that you are getting less and less in return, each day.

Returns are a matter of timing

Sure, if you buy and sell at the right time, you'll make a profit. However, statistics show that this "right time" can only be determined in hindsight - even for the most seasoned investment experts. So how do you achieve constant returns if not through timing? The answer lies in investing based on long-term growth potential. Investing in carefully selected assets over longer periods of time reduces your investment risk and increases the likelihood of growing your wealth sustainably.

Diversification is only for safety

A particularly persistent myth: Those who diversify their portfolios protect themselves from single outliers to the downside but in doing so limit their upside potential. In reality, professional investment strategies diversify for two reasons: first, to protect the portfolio from isolated incidents (losses); and second, to increase the probability that the expected return will be achieved.
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Which assets offer a high level of security?

Anyone looking for low-risk, long-term investment opportunities will often discover asset classes such as bonds, commodities or “value” stocks during their research. However, the asset class is usually not as important as the risk potential of an investment. The last few years have demonstrated this.

Those who wanted to take the safe route with bonds ended up blindsided not so long ago, in the spring of 2022. As central banks began hiking interest rates, the majority of bonds fell in value.

The opposite was true of value stocks, i.e., companies listed below their intrinsic value: Since the 2008 financial crisis, value stocks have largely underperformed expectations. It was only with the rise in inflation that value stocks saw increased demand again.

These examples show that there is no one-size-fits-all solution for low-risk investing. So how can investors proceed?

Three tips for long-term and low-risk investing

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1. Diversify

As outlined above, even investments that are considered low-risk can be unexpectedly affected by market events. This is why it is important to view your investment as a portfolio that needs to be sensibly diversified.

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2. Create an individual strategy

An individual investment strategy can ensure that your investment meets your personal goals. Factors such as your financial situation, the expected return and the planned duration of your investment are important to consider.

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3. Consult experts

Many investors are now wondering whether the global economy is on the verge of a turnaround. It can be helpful to consult with experts in order to place issues like these in the overall market context and to take into account potential scenarios.

Long-term partnership with Vontobel

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Years of experience with low-risk, long-term investments

We know the financial markets and have successfully implemented long-term investment strategies for years - for experienced investors and new investors alike.

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Personalized service from a family-owned investment firm

We place great emphasis on understanding your individual needs so we can tailor our services to meet your exact goals.

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Oriented globally, rooted in Switzerland

As a global investment firm with Swiss roots, we build on the success stories of our domestic market with a wealth of experience and analyst knowledge. This way, we create exciting options for your investment portfolio.

Investment ideas in the zeitgeist of today - and tomorrow

Those who recognize where economy and society are heading in the future are able to identify opportunities earlier and achieve long-term returns away from the turbulence of short-term market events. The model behind this long-term investment principle: megatrends.

For the past ten years, changes have been emerging that will have a lasting effect on our lives. These are the so-called "megatrends." They are defined by the fact that they…

  • remain relevant for 25 to 30 years.
  • have an impact on every area of our lives.
  • trigger global shifts.

 

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Get to know our experts

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Thomas Trsan

Deputy Portfolio Manager / Senior Esg Analyst

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Florence Kuang

Client Portfolio Manager

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Daniel Maier, CFA®

Head of Thematic Investing, Senior Portfolio Manager

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