Has mentioned in the launching of our first contract as advisors, the SICAV - Optimize Invest Selection is a balanced fund portfolio oriented for long-term savings composed of equity funds and bond funds.
It is exposed to shares from the Eurozone countries, Switzerland, Sweden, Russia, United Kingdom; Japan and Canada.
The fund bears to European High Yield, US Dollar, American High Yield, Norwegian Krone, Swedish Krona and Japanese Yen in the bond component.
Perspectives
Switzerland is one of the European countries that has managed the health crisis differently. The government preferred to adopt less stringent measures than its neighbours, relying on individual responsibility.
This approach goes hand in hand with high economic stability. Switzerland is one of the most developed financial markets on the planet. Innovation and enormous human capital are some of the nation's strengths. GDP is expected to drop by 5.3% in 2020, but the Swiss franc and the most defensive aspect of the Zurich stock exchange are essential assets.
Switzerland has three resilience factors that benefit its recovery:
- Greater industrial weight than the countries of southern Europe.
- Its main trading partners (Germany, the USA and China) are going through a better time than other countries.
- Have a balanced public account and a maximum rating level. Besides, the Swiss stock market combines low volatility with attractive return levels, resulting in a refuge for investors.
The biggest question concerning the Swiss market is the evolution of the franc. After being highly overvalued against the euro, the Swiss franc is now close to the equilibrium value. However, it benefits from its status as a refuge value in the medium term, which is very appropriate in significant uncertainty times.
Strategic allocation
Geographically, to diversify our portfolio, we allocated 5% of the fund to the Swiss market. By asset classes, the exposure will be made in shares through ETFs or investment funds.
To better understand the portfolio of funds or ETFs of shares and bonds, review our level 4 of the Money Framework series.
We also made a video resuming the different steps to follow or evaluate the way that you manage the cycle of your income, savings and investments.
When Euroconsumers Invest was born in June 2020, we presented ourselves with a clear purpose and well-defined objective: EUROCONSUMERS INVEST is a new Business to Business approach with a Business to Consumer DNA. We work with all entities and organisations that want to contribute to a more sustainable Financial market and empower all citizens.
The idea is to take, through work with companies, information and advice that would reach the largest number of consumers. Consumer organisations' experience is clear: there is a long way to help citizens' financial literacy.
In this sense, we disseminate the way we work and the basis of our analyses delivered to partners.
Definitions:
Mutual fund – A mutual fund is a professionally managed financial product – investment fund - that gathers money from many investors to buy securities: bonds, share or both.
The advantage of this product compared to direct investment - direct purchase of shares or bonds - is that by joining many investors, the amounts available to invest considerably increase, which reduces costs and diversifies the investment (a more significant number of securities purchased). This option is the most recommended for those who do not have much money (tens of euros are enough to invest), time to monitor the investment very regularly on a daily basis (there are fund managers who do this for you) and who have little knowledge of the financial markets.
ETFs - An exchange-traded fund is an investment fund traded on the Stock Exchange as if it were a stock. An ETF can also be called an index fund. Most ETFs track an index, such as a stock index or bond index