Invest your assets skillfully

You are welcome to manage your own assets. It may take a while to acquire the necessary expertise. As an award-winning independent Swiss asset manager, Tareno supports its clients with expertise and many years of experience in investment strategy, cost optimization and regular reporting.

Tareno AG – who we are – in a nutshell

Can I invest myself?

Of course, but investment novices should be aware that it makes sense to start with small steps and to acquire knowledge over the years about markets, industries, and strategies, investments, and fee traps in order to avoid surprises as much as possible. An independent wealth advisor like Tareno supports high net worth individuals not only with financial planning, but also with a customized investment strategy and its skillful implementation.

How do I acquire the necessary know-how and avoid unnecessary risks?

It is essential to develop a general understanding of economic interrelationships. Macroeconomics is just as much part of the skill set as basic business knowledge. Being able to read and understand balance sheets helps in evaluating companies. Daily study of relevant reporting is a good start. Specialist literature on individual aspects makes it possible to decipher the mechanisms of the market. Investigate investment concepts to slowly develop an understanding of how money can be profitably invested over time.

Investment strategy – it starts with self-reflection

To define personal investment goals, it is important to consider your own financial situation. Security, liquidity and return on investment behave like a triangle. The willingness to take risks influences financial goals and thus provides the framework for investments. A sustainable investment strategy is necessarily geared towards the long term. It becomes interesting when distributions from investments, such as capital gains or dividends, can be reinvested. Nevertheless, adjustments must be regularly reviewed, as both personal circumstances and the financial market are constantly changing. The saying “don’t put all your eggs in the same basket” is a good description of investment diversification. In a figurative sense, it is advisable to invest in different asset classes such as equities, bonds, gold and real estate. Risk can be hedged even more effectively by spreading investments across different economic sectors and regions.

Stocks – an enticing risk

Before investing in shares themselves, Sybille Wyss, CEO of Tareno, recommends that private individuals acquire knowledge about the relationships between risk and return over time. Shares are suitable for long-term investment strategies. The price of a share can vary greatly. It usually recovers from setbacks over time; the risk of a capital loss decreases with increasing investment duration. The stock market, characterized by short-term fluctuations, should therefore be viewed from a long-term perspective. Furthermore, companies can get into financial difficulties and, in the worst case, be liquidated. To minimize a possible capital loss, it is essential to be invested in several companies. Compared to bonds, however, equities offer the prospect of higher capital growth over the long term.

Private equity – the counterpart to traditional shares

Private equity involves shares in companies that are not (yet) listed on an exchange. This type of investment is usually made through professional investment companies that specialize in private equity as capital providers. In the US alone, 87% of all companies with revenues over $100 million are privately held and therefore not listed on the stock exchange. This interesting market is hardly accessible to private individuals when it comes to investments.

Bonds – an investment with a dividend

Private individuals who invest in bonds – also known as debentures – lend their money to the issuer of the security and receive interest in return. Compared to shares, bonds are a safer investment. Investors benefit from regular income. The amount of income can be determined from the key figure “yield to maturity”. This describes the total return on a bond held to maturity. It is made up of the interest rate level, the creditworthiness of the issuer and the term. However, bonds also entail uncertainties that investors should be aware of. Rising interest rates reduce the value of an investment. A company can become insolvent, which can lead to a permanent loss of capital. Here, too, the principle applies that “the higher the return (at maturity), the riskier the investment”.

ETFs – funds for every budget

Exchange-traded funds (ETFs) are based on a variety of equities or bonds. ETFs are therefore particularly interesting for investors who want to invest a small amount of money in a diversified way. ETFs can be categorized as either “distributing” or “reinvesting”. Those who want to generate a regular income invest their money in “distributing” ETFs. As a long-term investment, accumulating ETFs are better suited because here the yields are automatically reinvested. Investors benefit from the compounding effect and achieve a higher return. Compared to an individual investment, ETFs carry less risk due to diversification. Nevertheless, it should be noted that highly valued companies and those with high debt levels tend to be overrepresented in the ETFs. This in turn can have a negative impact on returns.

Derivatives – a playground for professionals

Futures transactions, as derivatives are also known, carry a high level of risk and are usually complex to handle. Derivatives can be used to speculate on specific market expectations. This is to be understood as a kind of bet on whether the price will rise or fall in the future. Derivatives are therefore useful, for example, to protect shares from a possible price drop. However, markets are often unpredictable and counterparties do not fulfill their obligations in all market phases. Individuals who do not have the necessary expertise are advised not to enter into forward transactions independently. Even with professional investment advice, it is necessary to understand the key workings of derivatives and the risks involved.

A good start is half the battle

Investing is a proven way to achieve long-term financial goals, build wealth and ensure financial security. By investing wisely, investors can benefit from potential returns and interest while protecting themselves against inflation and financial risks. There are a variety of investment options, each with its own advantages and disadvantages.
It is always advisable to build up a sound knowledge, to thoroughly inform yourself and to seek advice from professionals in order to make informed decisions. Experts can take into account individual needs and goals, conduct a comprehensive analysis and develop customized investment strategies that meet the changing personal circumstances.

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