Wealth Management
Wealth creation: sharing in Switzerland's success
Wealth creation: sharing in Switzerland's success
We all contribute to Switzerland's success on a daily basis. We can also benefit financially from it ourselves. Targeted investments can generate returns and offset losses in purchasing power.
The Swiss economy thrives on the people who work, start businesses and consume here. Every service, every tax payment and every purchase strengthens the country's position – and helps to make Switzerland one of the most successful economies in the world.
Participating in the economy
What many people overlook is that we not only contribute to Switzerland's economic success but can also benefit from it ourselves. Banks are the key to this. They enable us to participate in the long-term growth of the economy by allowing us to invest in securities such as shares and bonds.
Building wealth with shares
When you buy bonds, the investment works like this: you lend your money to a company or government and receive interest in return. When you buy shares, you become a co-owner of a company and participate in its success. You receive dividends and benefit when the share price rises.
Experience shows that those who want to build wealth and invest for the long term usually benefit from stable growth.
This is evident from a glance at the Swiss benchmark index SMI, which comprises the 20 largest and most liquid companies on the Swiss stock market. Since its introduction in 1988, its value has increased approximately eightfold. And since 1969, the Swiss stock market has achieved a positive return in 41 out of 56 years.
Banks as gateways to the investment market
Banks provide access to financial markets: they connect people who want to build wealth with the real economy. They open doors to markets that would otherwise be virtually inaccessible to private individuals.
This is because banks are connected to trading platforms and authorised to buy and sell securities. In addition, investment products such as funds are issued directly by banks and made available to private individuals. The bank also handles the technical and legal processing, books the securities in the custody account and ensures that interest and dividends are paid out.
Strong economy, growing wealth
Banks make it possible for private individuals to invest money in the first place – easily and securely – and are accessible to many. This means the strength of the economy becomes the engine of personal wealth.
