Independent online comparison service moneyland.ch conducted a representative survey of 1500 residents across Switzerland. Participants were asked which investment and wealth preservation vehicles they make use of.
The results: “Residents of Switzerland remain unmoved during the coronavirus crisis and continue to invest conservatively despite negative interest rates and the booming stock market,” observes moneyland.ch CEO Benjamin Manz.
Cash remains the favorite investment vehicle of Swiss investors. Stock investment has barely increased over the 2020 Swiss investment survey conducted before the start of the coronavirus crisis: 27% of survey participants own stocks. Swiss investors are much more conservative with regards to high-risk investments like bitcoin. Nearly one-fifth of residents own gold.
Men are more risk-tolerant than women when it comes to investment. Young adults are also less risk-averse, with adults between the ages of 18 and 25 being much more likely to invest money in risky investment vehicles than older adults.
Residents of German-speaking Switzerland are less risk-averse than residents of French-speaking Switzerland. Investments in stocks, gold, bitcoin and structured products are significantly more popular in German-speaking Switzerland. French-speaking Swiss are also less likely to keep cash at home.
Most popular investment types in Switzerland
moneyland.ch asked residents of Switzerland which of 26 different investment vehicles they make use of, and how much of their money they invest in each. Survey participants could choose from a scale of 1 (no money invested in the investment vehicle) to 10 (total wealth invested in the investment vehicle).
When we look at the portion of residents who make use of each investment vehicle without accounting for the amount of wealth invested, the results look like this: Private accounts at banks are the most widely used – 86% of residents hold some portion of their wealth in private account balances. This is followed by savings accounts (80%), cash at home (80%), pension funds (59%), pillar 3a retirement accounts (50%), retirement funds (48%), permanent life insurance (33%), real estate (30%), and stocks (27%).
When you look at the figures in terms of which investment vehicles residents hold large portions of their wealth in (ratings 7-10), the following results apply: 28% of residents hold a large portion of their wealth as savings account balances; 26% as private account balances; 17% in pension funds; 13% each in pillar 3a retirement accounts and retirement funds; 12% in real estate; 9% in permanent life insurance cash value; 6% of residents hold a large part of their wealth in stocks.
In this article, you can find an overview of investments ranked by popularity as per survey data.
Cash remains the number one investment vehicle in Switzerland
“Banknotes and coins may no longer the most important payment method for Swiss consumers. But when it comes to investments and holding wealth, cash is still king,” states Manz.
80% of survey participants keep money in savings accounts. Of these, 28% hold a large part of their wealth as savings account balances 32% hold a fair portion of their wealth in savings accounts, and 20% hold a small part of their wealth as savings account balances. Although private accounts are not designed to be savings instruments, the figures are similar to those of savings accounts: 26% hold a large portion of their wealth as private account balances, 35% hold a fair part of their wealth in private accounts, and 24% hold a small part of their wealth in private accounts.
Holding actual cash in the form of banknotes is also popular: 45% of participants keep small amounts of cash at home, 17% hold fair amounts of cash at home, and 5% hold a large portion of their wealth in cash at home. Holding cash in safe deposit boxes is somewhat less popular: 8% of residents hold small amounts of cash in safe deposit boxes, 6% hold a fair portion of their wealth as cash in safe deposit boxes, and 4% hold large amounts of cash in safe deposit boxes.
Money in providence institutions
14% of participants hold only a small part of their wealth in pension funds. 28% hold a fair portion of their wealth in pension funds, and 17% hold a large part of their wealth in pension funds. 10% hold a small part of their wealth as permanent life insurance cash value, 14% hold a fair part of their wealth in life insurance, and 9% have a large portion of their wealth invested in life insurance.
Pillar 3a retirement accounts and retirement funds are almost equally popular. 14% of residents have a small portion of their wealth in pillar 3a retirement accounts, while 23% have a fair amount of their wealth and 13% hold a large portion of their wealth in pillar 3a accounts. 11% of residents hold a small part of their wealth in retirement funds, 24% hold a fair part of their wealth in retirement funds, and 13% hold a large part of their wealth in this investment vehicle.
Stocks
27% of participants hold stock investments. Of these, 10% have a small portion of their wealth in stocks, 11% hold a fair portion of their wealth in stocks, and 6% have a large part of their wealth invested in stocks. Foreign stocks are somewhat less popular than Swiss stocks.
Holding wealth in stocks is much more popular in German-speaking Switzerland than in French-speaking Switzerland. In French-speaking Switzerland, only 19% of residents hold stock investments, compared to 30% of residents in German-speaking Switzerland. The difference between urban and rural areas is less significant, with 28% of urban residents holding stocks compared to 23% of rural residents.
Gender-based differences are notable: Only 19% of women invest in stocks, compared to 36% of men.
The survey provides interesting insights into stock ownership in relation to personal wealth. The wealthier the participant, the more likely they are to have invested in stocks. While only 22% of residents with between 20,000 and 50,000 francs of wealth hold stock investments, 32% of residents with between 50,000 and 100,000 of personal wealth own stocks, and 74% of millionaires own stocks.
Bonds and medium-term notes
12% of the population holds bond investments. One-tenth of residents hold medium-term notes – bonds issued by Swiss banks. That makes bonds significantly less popular than stocks – which is not surprising in the current low-interest environment.
Funds and ETFs
6% of residents hold a small portion of their wealth in actively-managed mutual funds. 8% hold a fair part of their wealth in funds, and 4% hold a large part of their wealth in funds.
Exchange-traded and passively-managed ETFs are now nearly as popular: 6% of residents have a small part of their wealth in ETFs, 7% hold a fair part of their wealth in ETFs, and 4% have a large portion of their wealth invested in ETFs. Index funds – which are tradable on stock exchanges – are less widely used.
As with stocks, gender-based differences in fund investments are notable: Only 13% of women hold investments in mutual funds and 12% hold ETF investments. In contrast, 22% of men hold fund investments.
Real estate
30% of the population hold investments in real estate. Real estate investments are more common with rural residents (36%) than urban residents (28%). They are more common in French-speaking Switzerland (35% of residents) than in German-speaking Switzerland (28%).
Gold and precious metals
10% of residents hold a small portion of their wealth in gold investments, 6% hold a fair part of their wealth in gold investments, and 2% hold a large portion of their wealth in gold. Nearly a fifth of residents own gold. Investments in other precious metals like silver or platinum are somewhat less common: 6% of residents hold a small, 4% a fair, and 2% a large portion of their wealth in precious metals other than gold. The pattern is clear: The richer the investor, the more likely they are to hold gold.
Fine art as an investment
6% of residents have a small portion of their wealth invested in fine art. 4% have a fair part of their wealth in art, and 2% have invested a large portion of their wealth in fine art. As with stock and gold, the wealthier the resident, the more likely they are to hold fine art investments. A notable 26% of millionaires in Switzerland hold art investments.
Bitcoin and cryptocurrencies
5% of survey participants have a small portion of their wealth invested in bitcoin, 3% hold a fair part of their wealth in bitcoin, and 3% hold a large portion of their wealth in bitcoin. The pattern is similar with other cryptocurrencies, with 5% holding a small part, 3% holding a fair part, and 2% holding a large part of their wealth in altcoins.
Bitcoin is more popular among young residents than with older adults. Only 5% of residents between the ages of 50- and 74-years old hold bitcoin – compared to 14% of adults aged 26 to 49, and 15% of adults aged 18 to 25 years old.
Women are less likely to invest in bitcoin: Only 5% of women hold bitcoin, compared to 16% of men.
Various speculative investments
11% of participants are invested in structured products. 5% use contracts for difference (CFDs), and 7% hold forex. These investment vehicles are most popular among active online traders. Speculation with CFDs and forex is most popular among the youngest age group (18 to 25), with 11% of residents in this age group investing in CFDs and 13% investing in forex.
Crowdlending is not yet widely used as an investment vehicle. Crowdlending involves lending money to individuals and companies to earn interest. Only 6% of residents have invested in crowdlending.
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