Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 20.11.2009, 15:57
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,379
Groaned at 269 Times in 175 Posts
Thanked 16,150 Times in 6,868 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Getting no interest on funds

Hi

I have a current account with UBS which pays me no interest. I guess I should really do something and put the money into something which generates some return.

Just wondering what you guys invest in?
Reply With Quote
  #2  
Old 20.11.2009, 15:59
coolcd's Avatar
Forum Veteran
 
Join Date: Oct 2007
Location: Basel
Posts: 535
Groaned at 0 Times in 0 Posts
Thanked 361 Times in 168 Posts
coolcd has a reputation beyond reputecoolcd has a reputation beyond reputecoolcd has a reputation beyond reputecoolcd has a reputation beyond repute
Re: Getting no interest on funds

Quote:
View Post
Hi

I have a current account with UBS which pays me no interest. I guess I should really do something and put the money into something which generates some return.

Just wondering what you guys invest in?
I guess this thread may help Recommendations for high intrest banks...
Reply With Quote
  #3  
Old 20.11.2009, 17:23
Nev
 
Posts: n/a
Re: Getting no interest on funds

Depends how much you've got to invest, your risk profile and your time horizon. You won't get much anywhere via a vanilla bank deposit.

For the average investor with a small nest egg you can look at government or corporate bonds if you have enough in the kitty (most come in mimimum $5,000 denomination, sometimes $10,000 equivalents). You'll get a higher return but then you'll take on credit risk - the lower the risk, the lower the yield and vice versa. And the longer the maturity of the bond the higher the inflation risk. Then you have to factor in the cost of the bid offer spread when you come to sell.

As an alternative to bonds you could look at stocks like Nestlé, Roche and some others which pay an attractive dividend yield. The downside is your capital is at risk if the stocks fall. On the other hand you could make a capital gain if the stock price goes up during your holding period.

Timing is everything. The easy money has been made in bonds. Ditto equities which have all rallied strongly this year.

If you're not familiar with stocks and bonds you should talk to an investment adviser.
Reply With Quote
This user would like to thank for this useful post:
  #4  
Old 20.11.2009, 17:28
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,379
Groaned at 269 Times in 175 Posts
Thanked 16,150 Times in 6,868 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Getting no interest on funds

Quote:
View Post
Depends how much you've got to invest, your risk profile and your time horizon. You won't get much anywhere via a vanilla bank deposit.

For the average investor with a small nest egg you can look at government or corporate bonds if you have enough in the kitty (most come in mimimum $5,000 denomination, sometimes $10,000 equivalents). You'll get a higher return but then you'll take on credit risk - the lower the risk, the lower the yield and vice versa. And the longer the maturity of the bond the higher the inflation risk. Then you have to factor in the cost of the bid offer spread when you come to sell.

As an alternative to bonds you could look at stocks like Nestlé, Roche and some others which pay an attractive dividend yield. The downside is your capital is at risk if the stocks fall. On the other hand you could make a capital gain if the stock price goes up during your holding period.

Timing is everything. The easy money has been made in bonds. Ditto equities which have all rallied strongly this year.

If you're not familiar with stocks and bonds you should talk to an investment adviser.
who do you buy your stocks through. good idea on the swiss stocks. i've never really paid attention to them before so will need to do some research.

i've got a pretty high risk appetite and have invested in some wacky things (and even done stupid things like trade FX) and wanted to get a few ideas.
Reply With Quote
  #5  
Old 20.11.2009, 17:32
amogles's Avatar
Forum Legend
 
Join Date: Mar 2008
Location: Zurich
Posts: 10,417
Groaned at 218 Times in 185 Posts
Thanked 21,453 Times in 9,134 Posts
amogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond repute
Re: Getting no interest on funds

Quote:
View Post
who do you buy your stocks through. good idea on the swiss stocks. i've never really paid attention to them before so will need to do some research.

i've got a pretty high risk appetite and have invested in some wacky things (and even done stupid things like trade FX) and wanted to get a few ideas.
Talk to your bank. Most banks offer some online trading schemes. They should also be able to offer you bond or fund portfolios to match your risk level.
Reply With Quote
  #6  
Old 20.11.2009, 17:44
cyrus's Avatar
Forum Legend
 
Join Date: Nov 2006
Location: Emmenbruecke
Posts: 2,896
Groaned at 37 Times in 34 Posts
Thanked 3,373 Times in 1,477 Posts
cyrus has a reputation beyond reputecyrus has a reputation beyond reputecyrus has a reputation beyond reputecyrus has a reputation beyond reputecyrus has a reputation beyond reputecyrus has a reputation beyond repute
Re: Getting no interest on funds

Quote:
View Post
If you're not familiar with stocks and bonds you should talk to an investment adviser.
At what level of investment does getting professional advice really payoff? 10,000CHF, 100,000CHF?

I've got no clue about stock and shares, but I really should be earning interest on some of my money.
Reply With Quote
  #7  
Old 20.11.2009, 17:55
Nev
 
Posts: n/a
Re: Getting no interest on funds

Quote:
View Post
Talk to your bank. Most banks offer some online trading schemes. They should also be able to offer you bond or fund portfolios to match your risk level.
That's where I would start if I were you. Just be wary of any products with names like "capital protection" coupled with "guaranteed return" and "yield enhancement". A lot of banks offer these over the counter to individual investors and they're rarely what they seem. Many have an embedded derivative product which can be expensive and may include a third party credit risk which is not apparent. The yield enhancement often relies on guessing right subsequent market direction.

Obviously, in addition to other the other risks I mentioned you also need to think about currency risk if you're looking at something outside your reference currency.
Reply With Quote
This user would like to thank for this useful post:
  #8  
Old 20.11.2009, 19:15
Nev
 
Posts: n/a
Re: Getting no interest on funds

Quote:
View Post
At what level of investment does getting professional advice really payoff? 10,000CHF, 100,000CHF?

I've got no clue about stock and shares, but I really should be earning interest on some of my money.
Good question.

Just walking into your bank and asking for their recommended lists of stocks and bonds plus some one off basic advice probably won't cost you much since they'll get paid via the transaction fees. If you're looking for anything more then it very much depends what you ask them to do, how often and whether you can negotiate. I don't use these services myself but maybe somebody who does can give you some idea what they pay. If not, just ask your bank.

Because of my background, I just use my bank for execution so I only pay transaction/custody costs which vary depending on what you're investing in. Your bank will have a list of what these are. Transaction costs are usually fixed charges which are levied every time you buy and/or sell, as a flat fee per security or a percentage of the amount you buy or sell. Custody fees are small. These all have to be taken into account since they'll reduce your overall return and they're not something you pay with bank deposits.
Reply With Quote
  #9  
Old 20.11.2009, 21:39
Goldtop's Avatar
Forum Legend
 
Join Date: Feb 2008
Location: Zurich
Posts: 2,857
Groaned at 11 Times in 11 Posts
Thanked 905 Times in 625 Posts
Goldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond repute
Re: Getting no interest on funds

Quote:
View Post
At what level of investment does getting professional advice really payoff? 10,000CHF, 100,000CHF?

I've got no clue about stock and shares, but I really should be earning interest on some of my money.

That depends on the quality of the advice and implementation success! The banks have various charging models:
  • The Bank gives you some free "tips". You trade through them and the 1% (?) transaction commission compensates the Bank.
  • You negotiate a flat yearly rate, e.g. 0.5% of AUM (Assets under Management) and the Bank waives the transaction commissions. This model often has a AUM threshold of 500k or higher.
  • Combination of the above.
YMMV. Suggest you do some comparison shopping.
Reply With Quote
  #10  
Old 20.11.2009, 23:13
SemAms's Avatar
Senior Member
 
Join Date: Jun 2009
Location: im Ausland
Posts: 305
Groaned at 3 Times in 3 Posts
Thanked 415 Times in 228 Posts
SemAms has an excellent reputationSemAms has an excellent reputationSemAms has an excellent reputationSemAms has an excellent reputation
Re: Getting no interest on funds

I do not believe what I m reading above:
after what the world experienced since September 2008, there are still people interested in buying stocks and bonds though they do not know much about them!!!

Lehman went down
Morgan Stanley, Merrill Lynch, RBS, Lloyds, Fortis had to be rescued
Whole countries faced bankruptcies (Iceland, Hungary, Ukraine, ..)
UK and even USA were in the brink of being downgraded

We r not through the crisis yet
There are still bankruptcies happening
Real sector has also joined the bandwagon of reducing head count

Additional returns are usually not worth the risk of losing the whole capital
Reply With Quote
This user would like to thank SemAms for this useful post:
  #11  
Old 21.11.2009, 09:52
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 7,505
Groaned at 316 Times in 212 Posts
Thanked 10,036 Times in 3,537 Posts
AbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond repute
Re: Getting no interest on funds

A current account with no interest in Swiss francs has been a tidy little earner over the last 18 months if you compare investments in GBP or USD. And it's safe...
Reply With Quote
  #12  
Old 22.11.2009, 17:04
Nev
 
Posts: n/a
Re: Getting no interest on funds

Quote:
View Post
Additional returns are usually not worth the risk of losing the whole capital
That rather depends on whether the risk is high or the risk is low. As a matter of fact, the risk of losing your whole capital is the easiest thing to avoid. But if you're going to worry yourself sick about any fluctuation in the value of your investments then by all means stick to cash - in a zero interest rate environment all you have to worry about then is inflation.
Reply With Quote
  #13  
Old 01.12.2009, 13:15
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,379
Groaned at 269 Times in 175 Posts
Thanked 16,150 Times in 6,868 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Getting no interest on funds

Quote:
View Post
A current account with no interest in Swiss francs has been a tidy little earner over the last 18 months if you compare investments in GBP or USD. And it's safe...
depends. if you have CHF denominated assets, then these would also have the same currency advantage.

also CHF have not performed as well as other investments, such as gold.

at this point in time, i'm not really too enthralled with holding any currencies and would prefer to buy hard assets but a lot of the more liquid commodities have already boomed.

i'd be interested in Swiss real-estate except that imputed rental income tax puts me off (as well as liquidity and minimum investment concerns).
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
trust funds rjainsley Finance/banking/taxation 4 30.05.2008 11:31
To save in funds whoop123 Finance/banking/taxation 4 01.02.2007 10:06
Stocks and Mutual Funds swisscheese General off-topic 1 30.06.2006 01:23


All times are GMT +2. The time now is 08:05.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0