Savings plan

A savings plan is an automated mechanism for long-term wealth accumulation. It involves investing a fixed amount in a financial product at regular intervals, usually on a monthly basis. It acts as a kind of “standing order for the future” and relieves investors of the emotional burden of having to find the perfect time to enter the market.

ETF savings plans are particularly popular, but the principle also works with traditional bank savings plans or funds. A key feature is the average cost effect (also known as the cost-average effect): since the rate remains the same, investors automatically buy more shares when prices are low and fewer when prices are high.

Thanks to low minimum rates – often starting at just one franc – savings plans make the capital market accessible to many. They promote discipline because saving is automated before the money is spent on consumption. The compound interest effect allows the savings plan to unfold its full potential, especially over decades. This makes it well suited for retirement planning or building wealth for children.

It should be noted that this is an execution-only business. This means that investors must be aware of and manage their own risk and rebalance their portfolio if necessary. With a digital asset manager, this effort and responsibility is delegated to the relevant provider.