Investment fund savings plan: Save via funds to invest for the long term

Reach your long-term saving goals. With the Investment fund savings plan.

In the past, people who wanted to save opened a savings account in the hope of obtaining high interest rates. Nowadays, an Investment fund savings plan is a more promising alternative: Long-term saving is combined with investing. How saving via funds succeeds. 

This is how an Investment fund savings plan works

There can be many reasons to save – to buy your own home, for a long trip, or for your retirement. If you want to put some money aside over a longer period of time, an Investment fund savings plan is a good choice. When you save via funds, your savings are invested in the financial markets using investment funds. As a rule, capital invested for the long term benefits from market trends and grows. The resulting return can be greater for savers than the interest income from a savings account.

And with an Investment fund savings plan, savers can also be flexible. Because they can decide themselves how much to deposit and how often. The fund too can be selected depending on the saver's risk profile and investment strategy. For example, investment funds with a high proportion of equities have the best prospects of good returns. But at the same time, equities are also subject to big price fluctuations and therefore require greater risk tolerance than other funds.

Minimize risks when saving via funds 

Global financial markets are subject to price fluctuations. The broad diversification of an investment fund counteracts such market and foreign exchange risks. Because funds comprise several different securities, the risk is spread over various asset classes, regions, investment styles, and investment instruments. In this way, potential losses can be offset by gains from other securities.

People who regularly pay a consistent amount into the Investment fund savings plan also benefit from the average cost effect. This smooths out fluctuating market prices: When prices rise, savers automatically purchase fewer fund units. By contrast, in a weak market environment, savers benefit from the fact that they can buy more fund units at a lower price. In this way, consistent deposits over a longer period of time lead to an average purchase price. The risk of buying units at the wrong time is reduced.

Saving via funds versus a savings account – an example comparison 

Over an extended period of more than 30 years, the same amount is saved regularly, resulting in total savings of CHF 33,000. Person A pays the money into a savings account, Person B invests in securities with an Investment fund savings plan. Thanks to the return on the investment, Person B's assets have more than doubled. By contrast, Person A has suffered a loss of around CHF 500 due to negative interest rates.

Deposit   Total CHF 33,000
Person A:
Savings account

Average interest rate
-0.10% p.a.2

Final net worth CHF 32,446
Person B:
Securities safekeeping account1

Average rate of return
3.90% p.a.2

Final net worth CHF 67,386
Additional income from
securities safekeeping account
compared to a savings account
    CHF 34,940

1Credit Suisse (Lux) Portfolio Fund Balanced CHF
2Credit Suisse's capital market expectations for the next 5 years.

More assets are accumulated from saving via funds than with a savings account

More assets are accumulated from saving via funds than with a savings account. 

Source: Investment Solutions, Swiss Universal Bank, Credit Suisse Group AG
Historical performance and financial market scenarios are not reliable indicators of current or future performance.

Advantages of an Investment fund savings plan

  • Systematic wealth accumulation in accordance with your own means
  • Invest simply, transparently, and cost-effectively
  • Attractive return opportunities because, in the long term, investment funds mostly outperform the interest income from a savings account
  • Market risk is minimized through broad diversification in an investment fund
  • Regular deposits reduce the risk of investing at the wrong time

Owing to its attractive return expectations, a long-term Investment fund savings plan is a promising alternative to a savings account. But savers must be prepared to bear a degree of market risk when saving via funds. In return, however, they can build more wealth over a long period than through interest from a savings account. And in this way they can bring their dreams of owning their own home or taking a trip around the world a bit closer. 

Do you have any questions about the Investment fund savings plan?

We will be happy to assist you. Call us at 0844 200 114.