Pillar 3b: Clever asset accumulation with investment funds

Investment funds invest money in a wide variety of asset classes:

• Equity funds such as our Target Investment Fund 100 in shares of companies
• Money market funds such as our Target Investment Fund Money Market in money market securities
• Real estate funds in real estate or real estate companies
• Bond funds such as our Target Investment Fund Bonds in government and/or corporate bonds

Mixed funds such as our Target Investment Fund 25, Target Investment Fund 35 or Target Investment Fund 45 invest in several asset classes, for example equities and bonds, in order to broadly diversify the portfolio.

With the Zurich Invest Fund Account, all the fund units you buy are managed at one bank. You can invest not only in one fund, but in several. This allows you to individualize your investment strategy, maximize return opportunities and minimize investment risks. And if you want to change your strategy, you can simply switch from one fund to the other. With the investment fund custody account, you always keep track and are always informed about the current value of your investment.

With our investment funds, you can invest your money professionally from as little as 1,000 francs. You can invest 1,000 francs or more once and pay in 100 francs or more regularly, for example with a standing order.

In our online portal you can check the current prices of the investment funds and track their performance. There you will also regularly find current publications such as the fund factsheets or annual reports.

Smart investors don't put all their eggs in one basket. They diversify their assets and invest, for example, in ten stocks instead of one or ten bonds instead of one. In this way, they maximize their return opportunities while reducing their investment risks. Our investment funds are broadly diversified:

• Target Investment Fund Money Market in many Swiss franc money market securities
• Target Investment Fund Bonds in many bonds and money market securities
• Target Investment Fund 25, Target Investment Fund 35 and Target Investment Fund 45 in many equities and bonds
• Target Investment Fund 100 in many shares

On the one hand, you don't have to study the economy, the markets, and your investments every day or make difficult investment decisions. On the other, you benefit from a systematic and structured investment process that leads to higher investment returns in the long term. You also avoid typical (and often costly) investor mistakes – a professional fund manager makes decisions based on facts and won't be driven by emotions when prices go up or down.

As an "asset manager of collective investment schemes", Zurich Invest Ltd is subject to the Swiss Financial Market Supervisory Authority FINMA  and is a wholly owned subsidiary of Zurich Insurance Company Ltd. We manage more than 42 billion Swiss francs for our customers. These fund assets are protected against insolvency as special assets. In the extremely unlikely event of Zurich Invest Ltd going bankrupt, the fund assets belong to the investors and do not therefore form part of the bankrupt's estate. This means the loss of your capital through bankruptcy is excluded at all times.

Fund selection depends on your investment strategy. The investment strategy is crucial for investment success. That's why you should seek professional advice before investing. Our advisors first clarify your personal situation, your financial goals, your investment horizon and your risk appetite before recommending a strategy, suggesting suitable funds and sensibly diversifying your investment fund custody account.

We advise our clients holistically, listen to them carefully until we understand their needs, and recommend investment funds that fit their investment strategy. Our four-step model has proven itself in consulting:

1. Securing your livelihood: Your income is the foundation for your financial security. At present, this consists of your salary; later, it is composed of your state (first pillar), occupational (second pillar) and private (third pillar) pension benefits.
2. Accumulating wealth: Before we start on systematic wealth accumulation, we analyze your assets and take account of your liquidity requirements up to retirement. This includes the financing of your home, if you own residential property or want to buy some.
3. Optimizing capital: Based on your personal situation and financial goals, we define your investor profile and determine your personal investment strategy with you. In this way, you can be certain that the investment solution fits you and your needs.
4. Identifying additional scope: With the money that you don't need for achieving your long-term financial goals you can take advantage of attractive investment opportunities or invest in coveted collector's items like classic cars or art.

Of course. An investment strategy is flexible so can change over the years and with your circumstances. With our funds, you can change your strategy at any time and switch from one investment fund to another.

Even investment professionals do not catch the right entry point every time. That's why discipline is more important than the timing. Experience shows that even with unfortunate purchase timing, positive returns are possible in the longer term, as the stock market always recovers in the long run. Uncertainty and falling prices should not therefore deter you from entering. What's more, such phases are often particularly suitable for long-term investments, because you benefit from lower entry prices. If you want to invest a lot of money, it makes sense to divide the amount and invest it in stages. This way you minimize the risk of investing at the wrong moment and lower your average entry price. 

Inflation has a stronger influence on monetary assets such as cash or bank balances than it does on material assets such as equities, precious metals and real estate. That’s why it makes sense to invest in material assets. What's more, in times of uncertainty, the knowledge of professionals is even more valuable. That's why we recommend that our customers seek advice. Arrange a personal consultation now. We review your current investment strategy and make suggestions on how the strategy could be adjusted to compensate for the loss of purchasing power due to inflation.

Stay calm and don't act rashly based on fear or panic. In times of uncertainty, it is important to stick to your investment strategy with discipline. Ups and downs are part of the stock market. In a long-term comparison, investments pay off.

Price corrections are an opportunity to get on board. That is why you should continue investing in uncertain times with regular deposits (from 100 francs upwards). If you leave your money in a savings account, it will keep on depreciating in value due to inflation.