Investing 5,000 francs of capital – a five-step manual

Anyone who wants to invest their capital will quickly realise that an investor needs to feel at home in the world of finance to really understand what he or she is doing. We explain by means of a practical five-step manual how you can easily invest 5,000 francs of capital.

The scenario is as follows: a well-paid man in his mid-thirties is pleased that for some time, a significant portion of his well-earned salary has been left over at the end of every month. Fixed costs and spontaneous spending no longer use up his entire budget. In this situation, many people start to wonder about what to do with the remaining money. Buy a new car, perhaps?

The importance of thinking about the future

What the younger generation often underestimates is the urgency of retirement planning. Anyone who buys a house or a car, for example, must also be in a position to finance it on a long-term basis. The burning question for the older generation is often: will I still be able to pay for it after I have retired?

Investing your salary as capital

Even for well-paid people in their mid-thirties, the time of relative prosperity will come to an end at an – admittedly distant – point in the future. Investing your surplus salary is definitely the right decision and one that will give you a better future.

Clarify the most important questions first

Before you invest, there are some important questions to ask yourself, relating to such matters as savings objectives and liquidities. You should also carefully consider the advantages and disadvantages of the different investment horizons.

Questions about investing capital

To summarise, you should ask yourself the following three questions:

  • How do I invest my money correctly?
  • Where should I invest my money?
  • How much risk can I take on?

Consulting an investment advisor is not an option for many investors as they are not planning to invest sums of 100,000 francs or more, and many are afraid of taking their investment into their own hands.

Investing capital – a five-step manual

Investing money is less complicated than buying a car. If you follow these five simple steps, there should no longer be anything stopping you from investing your capital:

Step one: spread the risk

The first and most important point when it comes to investing is do not put all your eggs in one basket. It makes much more sense to spread your investment across a number of asset classes and build up what is known as a portfolio. This applies regardless of whether you are investing 5,000 or five million francs. The classic asset classes are equities, funds and bonds, and they differ by region and currency.

The advantage of distributing your money is that it also distributes the risk. If an equity price falls, others will probably rise or at least remain stable. As a result, the growth of your assets is not endangered. The best advice for investing your money sensibly is to put it in a number of equities, bonds and commodities.


Invest your capital in a portfolio.
Multiple asset classes minimise the risk.


Step two: choose the right investment instrument

Next, you should consider which is the most suitable investment instrument for each asset class. In the process, you will have to decide whether to invest in fixed-interest securities, equities or funds.

ETFs are considered to be a good investment instrument. A particularly affordable option, ETFs follow the principle of passive investing. This means that the goal is not to actively beat the market but to passively replicate the market index as faithfully as possible.

What is more, an ETF is not an individual asset; instead, it represents the assets of various companies.


Decide where to invest the capital.
ETFs are the best choice for many investors.


Step three: how much risk is acceptable?

The next question is: “How much risk can I take on and how much do I want to take on?” A conservative profile will generate fewer returns, but a capital gains profile is not suitable for investors whose priority is security.

The risk profile determines how many equities are in the portfolio. Equities promise the highest returns, but they are also the most risky investment instruments. Investors with a balanced risk profile, for example, will have a maximum of 59% of their portfolio invested in equities.


Ask yourself how great a risk you can take.
The proportion of equities in your portfolio is what determines the risk profile.


Step four: set up your custody account and invest your capital

The next thing you need is a custody account with a bank or an online broker in order to buy and hold the investment instruments. This is usually done online via a corresponding screen in the online custody account. To buy the right ETF, you need the identification number. This is usually the ISIN or the securities number.

A word of caution: buying the ETF is probably the most important step. What you buy and when you buy it is key. You need to have an eye on the right ETFs and base your decisions on your risk profile.

The timing of the investment should also be considered in this step.

Many shareholders are warning that the equity markets are currently at an all-time high and there will soon be a big crash. Having time on your hands is a big advantage: if the worst comes to the worst, it means you can ride out the crisis and wait for the markets to recover. For those who have less time to play with, the best approach is to invest a certain amount each month. This way, you can be sure that you have not invested at completely the wrong time.


Choose the right ETF carefully.
In terms of the timing of the investment, consider whether you want to invest in steps or on a one-off basis.


Step five: wait and do nothing

The fifth step is probably the most pleasant of all. Your portfolio has been set up and your next task is simply to wait. Once every six months or once a year, you can check whether the weighting of the individual asset classes is still in line with your original objective.

You should also consider whether personal or financial events have changed your risk profile. Correct rebalancing of the portfolio is too complicated for many investors. After all, managing the portfolio requires a good level of knowledge.

Let your money work for you

If you use an online wealth management service like ELVIA e-invest, it means you are handing over responsibility for the management of your portfolio. The minimum investment to receive professional wealth management services from ELVIA e-invest is 5,000 francs, after which investors may make monthly deposits if they wish.

The portfolio is made up of ETFs and the investment strategy is based on your risk appetite and need for security.

We have simplified the five steps by asking the right questions for you. The best thing is simply to try it out.

Benefit now with a one-off investment starting from as little as 5,000 francs

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