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So, the crucial question isn’t: «What stock should I buy? », but: «How should my portfolio be structured in overall terms?» That’s the essence of professional wealth management that goes beyond.

«A quality portfolio isn’t created through individual plays; it’s about strategically chosen building blocks that work together and are individually tailored to your circumstances.»

Joel Gubser, Investment Advisor at Zuger Kantonalbank

Why diversification is key

Private investors often make decisions on an emotional basis, driven by headlines, trends or short-time market fluctuations. Seasoned investment experts, on the other hand, take a strategic approach: Their focus is on multiple dimensions such as risk capacity, diversification, investment horizon, inflation hedge and correlation between investment classes. In terms of diversification in particular, it’s worth taking a closer look. An ostensibly broad-based index fund on the Swiss Market Index can be deceptive: Individual stocks each account for over 15% of the total weight, which results in significant cluster risk. Even the S&P 500, which comprises as many as 500 stocks, is less diversified than it seems: Fact is, the three biggest positions together account for over 20%. Real diversification therefore means more than choosing an index. It comes through a conscious choice of product with investments that actually reflect different risks and don’t simultaneously move in the same direction in turbulent markets.

What role do individual investment classes play?

The aim is to protect and accumulate wealth over the long term and preserve it across generations. For that reason, a professional investment structure is rarely confined to equities. Instead, capital is deliberately diversified across different areas depending on risk profile, personal circumstances and investment goals. Equities deliver growth over the long term. Bonds bring stability to the portfolio – especially during periods of market turbulence. Gold acts as a hedge against uncertainty and inflation. Real estate provides additional diversification and can generate a regular income.

The key factor is not so much which investment class is currently in vogue, but how it’s weighted within the overall portfolio and what role it performs there.

Why there’s no one-size-fits-all solution

There is no universally valid formula for the right asset allocation. Young entrepreneurs with a long-term investment horizon structure their portfolio differently than a family whose primary consideration is to preserve their capital. By the same token, the needs of conservative investors differ from those of growth-oriented investors. That’s why at Zuger Kantonalbank we don’t believe in one-size-fits-all solutions. Instead we work with our clients to create an investment structure that suits their personal circumstances, goals and time horizon.

What sets a professional portfolio apart

Joel Gubser, Investment Advisor at Zuger Kantonalbank, shows how a well thought-out investment structure might look. The chart below gives an example of how different investment classes can be weighted within a balanced, structured portfolio.

Successful portfolios often seem fairly unspectacular at first sight: Long-term success is achieved not only through short-term speculation but also through structure, discipline, cleverly chosen products and the right strategic combination of different investment classes.

«There’s no such thing as the perfect entry time. What matters is time in market – with a portfolio that’s tailored for every market phase.»

Joel Gubser, Investment Advisor at Zuger Kantonalbank

Everyone’s circumstances are different. That’s why having an investment strategy that’s tailored to your goals, time horizon and risk capacity will bring rewards. Our experts will help you grow your assets on a long-term, structured basis.