How can I find out about the Swiss stock market and invest in it?

The Swiss economy is one of the most prosperous and developed in the world. Despite the country's lack of raw materials, it is one of the most popular destinations for entrepreneurs, businessmen and investors. The Swiss stock exchange is one of the economic attractions in the country's economic and financial environment.

In Switzerland, the stock exchange is a market economy institution that is supervised by a regulator. The neutrality of the regulator's operations reassures investors of the values of fairness, transparency and trust. It also ensures the proper circulation of information and press releases, as well as the smooth operation of the market police through notifications, investigations and sanctions.

In this article, we list the essential points to bear in mind before investing in the Swiss stock market.

1. Who can invest on the Swiss stock market?

The Swiss stock market boasts a wide variety of shares in different sectors. This can benefit everyone without distinction. There are no restrictions on who can invest in Switzerland's stock markets. Anyone can invest on the Swiss stock market as long as they meet the relevant legal requirements.

An individual or a professional may hold one or more accounts on the Swiss stock market. Personal capacity must then be demonstrated by financial capacity. Whether you are from French-speaking Switzerland, Geneva, Lausanne or Vaud, you can invest as little as CHF 500 in the stock market.

Before embarking on this adventure, you should be familiar with the investment market and the trend in Swiss stock market figures. This will prevent you from taking too many risks, especially unnecessary risks.

2. How can I invest on the Swiss stock market?

The Swiss stock market has been democratised and is now much more accessible to everyone. The emergence of investment platforms has multiplied the number of people who can create one or more accounts to buy and sell shares online. If you want to invest in the Swiss stock market, you must first have an investment or savings vehicle in which to hold the securities you buy and keep the gains you make.

The Swiss stock markets allow you to buy and sell shares through financial institutions that are recognised and approved for stock market investment. To do this, you need a securities account or a share savings plan (PEA). The intermediary you choose to carry out your stock market transactions may vary according to your choice:

• An investment manager: this can provide you with a personalised and, above all, physical experience.
• An online broker: if you are already familiar with the investment markets, you can simply choose an online broker to carry out your investments. This essentially helps you to reduce transaction costs.
• A robo-advisor: a digitised experience with this type of robot gives you the option of managing your investments via an online platform, whatever your investor profile.

3. How much risk should I take when investing in the Swiss stock market?

Having studied the rules and behaviour of the stock market, you now need to concentrate on what investments to make. Investing in the stock market does not necessarily require a large amount of capital. In fact, it's advisable to start with modest investments to reduce the risk of loss.

If you don't know, investing in shares on the stock market gives you good liquidity, albeit at a higher risk, whereas buying bonds seems less risky, but gives you little liquidity. There is therefore every reason to believe that in Switzerland, you have to take more risk to have good liquidity.

However, you need to understand that the solutions are not the same for all investors. They vary from one investor to another. That's why there are various forms of investment available to you. You can choose to invest in shares on the stock market, but also in other instruments such as funds or bonds. It is advisable to use the services of a professional to analyse the risks of each operation before taking the plunge.

4. Where and what should I invest in on the Swiss stock market?

There are dozens of sectors in which you can buy shares in Switzerland. The best-performing and most profitable are in telecommunications, technology, health, consumer goods, property, cannabis, financial companies and so on. Before choosing them, it's a good idea to check their performance over 3 months, 6 or 1 year.

In addition, the asset classes and instruments in which you can invest on the Swiss stock market are undoubtedly varied. Buying shares in listed companies allows you to take a stake in a company in return for a dividend. This type of investment is particularly good for generating capital gains or capital appreciation.

ETFs allow you to place your investment in the form of a stake. This is placed on a set of stocks that replicate the composition of a stock market or sector index. If you want to lend money to companies, structures or governments at a set interest rate, you can choose bonds or debt securities. As for mutual funds, they work by pooling money with other investors in a portfolio that will be managed by a professional manager.