Investment advice in Switzerland

The financial world is becoming more complex: low interest rates, new investment trends, and stricter regulations are shaping the market. As an investor, you face the challenge of making informed decisions. Many therefore seek professional support for their investments. Informed investment advice helps you minimise risks and seize opportunities in the financial markets.

What is investment advice and why is it important?

Investment advice supports you in selecting suitable investments. Your advisor will analyse your financial situation, personal goals, and risk tolerance, recommending investments tailored to you.

Unlike wealth management, however, you, the investor, ultimately decide which recommendations to implement. This means the responsibility for each investment decision remains with you.

With wealth management, you transfer decision-making authority to your wealth manager, who makes all investment decisions on your behalf based on a strategy you’ve agreed upon.

The benefits of professional investment advice

Professional investment advice offers various benefits:

• Risk minimisation: Through careful analysis and diversification, your advisor protects you from unnecessary risks. Your portfolio is structured according to your risk tolerance, making it more resilient to market fluctuations.

• Expertise: Investment advisors have in-depth knowledge of the markets and experience. They continuously monitor financial market developments and can apply this expertise directly to your investment decisions.

• Optimal portfolio structure: Your advisor helps you find the right allocation between asset classes like shares, bonds, and alternative investments, tailored to your personal goals and investment horizon.

• Time saving: You don’t have to monitor the markets daily. Your advisor does that for you and provides actionable recommendations, helping you avoid emotional decisions and maintaining a disciplined approach. This is key to avoiding common investment mistakes.

In short: Investment advice brings expertise and strategy into your financial planning. Especially if you feel uncertain about financial matters or want to invest larger sums, professional advice adds significant value.

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Overview of investment advisory services in Switzerland

The Swiss investment advisory landscape offers various options:

• Banks: Traditional major banks, cantonal, and regional banks provide personal advisors who have access to a wide range of products. Swiss banks bring substantial private banking experience but typically require higher minimum investments and charge relatively higher fees.

• Independent advisors: These financial advisory firms or individuals are not tied to specific banks and can recommend products from different providers. They typically work on a fee basis (hourly or flat rate) or via commissions. Look for certified qualifications (e.g., CFA, Swiss-certified financial advisors), sufficient experience, and, importantly, transparency in fees and genuine independence.

• Fintech providers: New Swiss fintech companies are making investment advice more digital and often more affordable. These include robo-advisors offering automated investment suggestions and digital banks like Alpian. They lower entry barriers with lower minimum investments and user-friendly apps, making professional investment advice accessible to a broader audience.

Robo-advisors vs personal investment advice

A key decision when choosing a model is whether to opt for automated or personal advice.

Robo-advisors use algorithms to manage your wealth. The advantages: they are available 24/7, charge lower fees, and create your investment strategy based on a simple online questionnaire. The downside: for personal queries or complex situations, purely automated systems have limitations.

Personal investment advisers, on the other hand, take a more tailored approach, having real conversations with you and looking at your entire financial situation – including tax considerations and emotional factors. In return, you typically pay higher fees.

Modern offerings now combine both approaches: Alpian, for example, uses hybrid advice. Your investments are managed through an app, while real financial experts provide advice in the background and are available for personal consultations when needed.

Fee models for professional investment advice

The costs of professional investment advice can vary widely depending on the provider and model. Here’s an overview of typical fee models in Switzerland:

• Fixed fees: Some advisors offer package prices or annual fees. You pay a fixed amount for a certain number of advisory hours or a monthly fee for ongoing support.

• Commissions: Many bank advisors work on a commission basis, earning from each transaction or receiving retrocessions from fund companies. These costs are less transparent as they are often hidden within the product price. New regulations, like the Financial Services Act (FIDLEG), now require more transparency in this area.

• Performance-based fees: Wealthier clients sometimes negotiate success-based fees with their wealth manager, for example, a percentage of returns above a certain benchmark. This model is more common with hedge funds or special mandates.

• Asset-based fees: A very common model involves an annual percentage fee based on your managed assets. Robo-advisors typically charge fees of between 0.5% and 0.8% per year, while traditional banks often charge 1% or more. Many providers offer tiered rates, with larger sums receiving better terms.

Comparison of different Swiss investment advisory providers

The table below shows you the differences in terms of costs and access requirements for various investment advisory services in Switzerland:

Many banks also offer advisory for smaller wealth, but often in a reduced form or at higher costs (e.g., through product commissions instead of flat-rate fees). Exclusive private banking services are aimed at clients with significantly higher wealth (usually several hundred thousand CHF).

How to find the right investment advice

Choosing the right investment advice should be a well-thought-out decision, as it concerns your wealth and long-term financial goals. Before making a choice, consider the following criteria:

• Qualifications and Licensing: Ensure that the advisor has recognised certifications and complies with FIDLEG requirements. Valuable qualifications include CFA, CAIA, or federal qualifications such as Certified Financial Advisor IAF.

• Experience and References: Ask about professional experience and possibly request references. A suitable specialisation can also be important, especially for specific concerns like real estate, estate planning, or tax-optimised investing.

• Cost Transparency: Make sure there is transparency about the fee model from the outset. Reputable advisors will openly state how they are compensated. Be cautious of advisory offers with hidden payment models or when primarily in-house products are recommended.

• Independence and Philosophy: Check whether your advisor is tied to certain products. Independent advice can choose from a broader range of solutions. Also, find out about their investment philosophy: do they prefer active stock selection, passive ETFs, or sustainable investments? The strategy should align with your values and expectations.

Conclusion: Investment advice for your financial success

The right investment advice can be crucial for your investment success in today’s complex financial environment. The Swiss advisory landscape offers a wide range of options, from traditional banks to independent advisors and innovative fintechs.

When making your choice, pay attention to transparency, professional expertise, and alignment with your personal needs. Always consider the costs in relation to the added value. Good advice helps you achieve better return opportunities and significantly reduces your effort.

Would you like to benefit from professional investment advice while maintaining your flexibility? Feel free to contact us anytime. The experienced wealth management team at Alpian is here to offer you personalised support. We help you structure your investments optimally and achieve your financial goals for 2025 and beyond.