Stocks, Bonds, and Other Investments: These Returns Are Realistic

From hedging against crises to holding an emergency fund or building wealth, there are many different reasons why people hold investments. Which asset class you invest in determines both the risk of losing money, and the profits that you could potentially achieve. This guide gives you an overview of the most important asset classes.

Important: In most cases, it is not possible to predict future returns. For this article, moneyland.ch uses historical data, which is not a clear indicator of future developments. The historical performance figures do not account for inflation, nor for possible investment fees and charges.

1. Savings account

Savings accounts are one of the most secure investment vehicles. The account balance does not fluctuate, and is up to 100,000 francs per customer and bank is covered by bank depositor protection.

Potential returns: When you use savings accounts, you sacrifice returns for security. The moneyland.ch historical returns calculator shows that between 1933 and 2023, Swiss savings accounts yielded an average return of 2.35 percent per year. That yield was practically nullified by inflation. Over the 10-year term beginning at the start of 2014 and ending at the close of 2023, the average interest rate was just 0.1 percent per year. That was not even enough to cover inflation over the same period. Currently, the average annual interest rate across Swiss savings accounts for adults is 0.35 percent (as per January 2025). It is to be expected that in the future too, interest paid on savings account balances will scarcely exceed inflation rates, if at all. In December 2024, the inflation rate in Switzerland sat at 0.6 percent.

Use cases: Using savings accounts makes sense for holding wealth over short or mid-length investment terms. That would be the case with an emergency fund, for example. Savings accounts are also suitable for risk-averse investors who cannot handle fluctuations in the value of their wealth.

2. Fixed deposit accounts and medium-term notes

When you use medium-term notes and fixed deposits, you place money in a bank for a predetermined period of time. Both the investment term and the interest rate are fixed. You cannot make withdrawals until the end of the fixed term. Like savings accounts, fixed deposits and medium-term notes from Swiss banks are considered to be secure, and are covered by bank depositor protection.

Potential returns: The returns you can earn with medium-term notes and fixed deposit accounts are meager. Depending on the bank and investment term, it is possible to earn more interest than you could with a savings account. But you should be aware that the annual interest rate is fixed, so if offers with higher interest rates become available during the term, you will not be able to move your money without paying penalties.

Use cases: Medium-term notes and fixed deposit accounts are suitable for investors who have low risk tolerance. Important: You cannot withdraw your money ahead of schedule without penalties.

3. Stocks

Investing in the stock market comes with a higher risk of loss than investing in interest-based vehicles like savings accounts and fixed deposits. You can reduce the risk by spreading your investment across a broadly diversified portfolio of many different stocks – by investing in an ETF that replicates a global stock index, for example.

Potential returns: There is no way to accurately predict the future performance of stocks in advance. In the past, however, diversified stock portfolios have yielded substantial returns. According to data from Pictet, Swiss stocks delivered an average return of 7.7 percent per year between 1926 and 2023. The average return was 6.7 percent per year between 2004 and 2024, and 6.4 percent per year between 2014 and 2023. The performance of a diversified portfolio of Swiss stocks was substantially higher than average inflation rates over the same periods.

Had you invested in a globally diversified stock portfolio – more specifically in an ETF that replicates the MSCI World global index – then you would have earned even higher returns. Between 2014 and 2023, the nominal return in Swiss francs was 7.9 percent per year.

Use cases: Diversified investments in stocks – using stock ETFs and index funds, for example – are suitable for long-term investments, if you can cope with fluctuations in the value of your assets.

4. Bonds

Diversified investments in bonds are somewhat conservative, compared to stock investments. You can find detailed information on this topic in the guides to investing in bonds and bond ETFs, and the guides to investing in Swiss government bonds and foreign government bonds.

Potential returns: The returns you can earn with bonds depend heavily on the going interest rate environment, expectations of future interest developments, and the creditworthiness of bond issuers. If you compare performance using the Swiss bond index SBI AAA-BBB as a benchmark, you see that the returns yielded by Swiss bonds are substantially lower than those delivered by Swiss stocks. Since the index was first published in January 2007, the average annual performance has been 1.78 percent. Between the start of 2014 and the end of 2023, the annualized performance was a meager 0.64 percent per year.

Use cases: Bonds can be added to a portfolio alongside a broadly diversified stock component in order to lower the scale of fluctuations in your portfolio’s value. They are also a suitable investment vehicle for investors with low risk tolerance who aim to earn higher returns than what is possible using savings accounts and fixed deposits. Important: There is no guarantee that bonds will perform better than savings accounts and fixed deposits in the future.

5. Precious metals

Previous metals like gold, silver, platinum, and palladium have a reputation for retaining their value during periods of crisis. You can buy precious metals as physical bullion, or invest in them using ETFs, ETCs, and other investment products.

Potential returns: Precious metals are considered to be a safe haven, but there is no way to accurately predict how their value will develop in the future. The value of these metals can fluctuate severely. Between 2014 and 2023, the Swiss franc spot price for gold went up by an average of 4.7 percent per year. That is somewhat lower than the performance of the stock market over the same period. Palladium gained by 3.78 percent per year, on average, while silver gained by 1.11 percent per year. The value of platinum, on the other hand, decreased substantially (-3.8 percent per year, on average).

Use cases: Investors who are able to cope with fluctuations in the value of their assets can use precious metals to diversify a long-term investment portfolio.

6. Cryptocurrencies

Cryptocurrencies like bitcoin and Ethereum are now widely discussed. But the hype can cloud the fact that this is a highly speculative and risky asset class.

Potential returns: Over recent years, the value of many cryptocurrencies has gone up remarkably, in spite of several crashes. The most important cryptocurrency, bitcoin, grew in value by 48 percent per year between 2014 and 2023. Today – just 16 years after its introduction – the cost of one bitcoin sits at above 90,000 Swiss francs (as per January 2025). 

It is worth noting though, that bitcoin investors also experienced some major lows. After reaching what for that time was an all-time high in November 2021, the value of bitcoin collapsed by around one-third by June 2022. Since then, the bitcoin price has recovered and consistently reached new all-time highs (as per January 2025.

Use cases: Cryptocurrencies are suitable for experience, risk-embracing investors who are willing and able to deal with high losses.

7. Real estate

Many people in Switzerland dream about owning their own home – both as a place to live, and as an investment. You can find detailed information on this topic in the guide to investing in Swiss real estate.

Potential returns: There are many different factors that affect the value of real estate, and there is no sure way to predict how prices will develop. Between 2014 and 2023, the value of residential properties in Switzerland went up by just under 3 percent per year. But it is important to understand that this performance figure is based on the IAZI Private Real Estate Price Index, which tracks the performance of many different properties. The price of an individual house or apartment can develop very differently.

Use cases: Real estate can be used to diversify a portfolio of investments. Most real estate investment methods require large amounts of investment capital. But real estate ETFs and some other investment vehicles make it possible to participate in the real estate market even with small amounts of investment capital.

Annualized performance of different asset classes between 2014 and 2023, in CHF:

*Source: UBS ETF (IE) MSCI World UCITS ETF (USD) A-dis.
Performance accounting for dividends. Sources: Coin Market Cap, justetf.com, LBMA, moneyland.ch, Pictet.

Note: This article is provided for informational purposes only, and should not be considered as investment advice. The publishers do not accept any liability in connection with this article.

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