{"id":9530,"date":"2018-11-19T11:30:16","date_gmt":"2018-11-19T10:30:16","guid":{"rendered":"https:\/\/schweizerfinanzblog.ch\/asset-allocation-the-nuts-and-bolts-of-your-investment\/"},"modified":"2026-06-12T00:00:00","modified_gmt":"2026-06-11T22:00:00","slug":"asset-allocation","status":"publish","type":"post","link":"https:\/\/schweizerfinanzblog.ch\/en\/asset-allocation\/","title":{"rendered":"Asset Allocation: The Be-All and End-All of Investing"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>How much of your money belongs in equities \u2013 and how much stays in your bank account? The answer is the most important decision you&#8217;ll make when investing. Not picking the right ETF, not the perfect moment to get in \u2013 but how you structure your assets. In this fourth lesson of our financial guide, you&#8217;ll learn how to determine your personal asset allocation step by step and what role your risk profile, your liquidity reserve and the third pillar play in it.<\/strong><\/p>\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/schweizerfinanzblog.ch\/en\/diversification\/\" target=\"_blank\" data-type=\"post\" data-id=\"299\" rel=\"noreferrer noopener\">&lt; Lesson 3<\/a>\u00a0|\u00a0<a href=\"https:\/\/schweizerfinanzblog.ch\/en\/invest-in-8-lessons\/\" target=\"_blank\" rel=\"noreferrer noopener\">Overview<\/a>\u00a0|\u00a0<a href=\"https:\/\/schweizerfinanzblog.ch\/en\/rebalancing\/\" target=\"_blank\" rel=\"noreferrer noopener\">Lesson 5 &gt;<\/a><\/p>\n\n<link rel=\"stylesheet\" href=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/themes\/schweizerfinanzblog\/components\/post-info-component\/post-info-component.css?v=3\">\n<div class=\"post-info-component sfb-post-info-autoren\">\n\t\t<span class=\"sfb-post-info-bilder\">\n\t\t<img decoding=\"async\" class=\"sfb-autor-bild\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/07\/stefan_bw_round-autor-240.webp\" alt=\"Stefan Huser\" width=\"40\" height=\"40\" loading=\"lazy\"><img decoding=\"async\" class=\"sfb-autor-bild\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/07\/toni_bw_round-1-autor-240.webp\" alt=\"Antun Brcina\" width=\"40\" height=\"40\" loading=\"lazy\">\t<\/span>\n\t\t<div class=\"sfb-post-info-text\">\n\t\t<div class=\"von-and-comments sfb-post-info-namen\">\n\t\tBy <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/author\/stefan-huser\/\">Stefan Huser<\/a> and <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/author\/antun-brcina\/\">Antun Brcina<\/a>\t<\/div>\n\t\t\t<div class=\"post-dates\">Updated on <time class=\"entry-date updated\" datetime=\"2026-06-12T00:00:00+02:00\">12.6.2026<\/time><\/div>\t\t<\/div>\n\t\t<a class=\"sfb-post-info-kommentare\" href=\"#comments\">10 Comments<\/a>\n\t<\/div>\n\n<link rel=\"stylesheet\" href=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/themes\/schweizerfinanzblog\/components\/kurz-bundig-component\/kurz-bundig-component.css?v=2\">\n\n<div  id=\"wVRqYom\" class=\"kurz-bunding mb-3\" style='background-color:#f9f9fa'>\n\t<div class=\"d-flex kurz-bunding-title\">\n\t\t<div>\n\t\t\t<img decoding=\"async\" class=\"kurz-bunding-icon\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2023\/01\/lifghtbulb2.png\">\n\t\t<\/div>\n\t\t<p class=''>\n\t\t\tIn a nutshell\t\t<\/p>\n\t<\/div>\n\n\t<div class=\"kurz-bunding-content\">\n\t\t<ul>\n<li class=\"whitespace-normal break-words pl-2\">Asset allocation \u2013 splitting your assets into a high-risk and a low-risk portion \u2013 is the most important decision you make when investing.<\/li>\n<li class=\"whitespace-normal break-words pl-2\">Before you invest, you need a liquidity reserve of three to six months&#8217; expenses. It sits outside your asset allocation.<\/li>\n<li class=\"whitespace-normal break-words pl-2\">Your risk profile \u2013 made up of risk tolerance and risk capacity \u2013 determines the weighting. Whichever of the two factors is more cautious sets the limits.<\/li>\n<li class=\"whitespace-normal break-words pl-2\">In the high-risk portion, broadly diversified equity ETFs form the core. The simplest solution: a single global ETF. If you like, you can add to it using the core-satellite principle.<\/li>\n<li class=\"whitespace-normal break-words pl-2\">The low-risk portion \u2013 bank deposits and possibly high-quality bonds \u2013 brings hardly any return, but provides stability, flexibility and rebalancing ammunition.<\/li>\n<li class=\"whitespace-normal break-words pl-2\">Write down your target allocation. It&#8217;s your guiding star \u2013 and in the next market crash it&#8217;s worth more than any hot investment tip.<\/li>\n<\/ul>\n\t<\/div>\n\t\t\t\n\t<\/div>\n\n<style>\n\t#wVRqYom .kurz-bunding-content li::marker{\n\t\tcolor: #37c392;\n\t}\n\t#wVRqYom .kurz-bunding-call-to-action a{\n\t\tbackground-color: #1bab78;\n\t\tcolor: #FFFFFF;\n\t}\n\n<\/style>\n<div id=\"toc_container\" class=\"no_bullets\"><p class=\"toc_title\">Contents<\/p><ul class=\"toc_list\"><li><a href=\"#What_is_asset_allocation\">What is asset allocation?<\/a><\/li><li><a href=\"#The_liquidity_reserve_your_safety_net\">The liquidity reserve: your safety net<\/a><\/li><li><a href=\"#Your_risk_profile_determines_the_split\">Your risk profile determines the split<\/a><\/li><li><a href=\"#From_theory_to_practice_splitting_your_assets\">From theory to practice: splitting your assets<\/a><ul><li><a href=\"#The_high-risk_portion_equities_at_the_core_add-ons_as_satellites\">The high-risk portion: equities at the core, add-ons as satellites<\/a><ul><li><a href=\"#A_global_ETF_as_the_foundation\">A global ETF as the foundation<\/a><\/li><li><a href=\"#Targeted_add-ons_using_the_core-satellite_principle\">Targeted add-ons using the core-satellite principle<\/a><\/li><\/ul><\/li><li><a href=\"#The_low-risk_portion_security_and_availability\">The low-risk portion: security and availability<\/a><\/li><\/ul><\/li><li><a href=\"#And_what_about_Pillar_3a\">And what about Pillar 3a? <\/a><\/li><li><a href=\"#Conclusion\">Conclusion<\/a><\/li><li><a href=\"#You_might_also_be_interested_in\">You might also be interested in<\/a><\/li><li><a href=\"#Updates\">Updates<\/a><\/li><li><a href=\"#Disclaimer\">Disclaimer<\/a><\/li><\/ul><\/div>\n<h2 class=\"wp-block-heading\"><span id=\"What_is_asset_allocation\">What is asset allocation?<\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">Behind the term <a href=\"https:\/\/en.wikipedia.org\/wiki\/Asset_allocation\" target=\"_blank\" rel=\"noreferrer noopener\">asset allocation<\/a> lies a simple idea: structuring your assets. In concrete terms, it&#8217;s about how you spread your money across different asset classes \u2013 how much goes into equities, how much stays in your bank account and how much, if any, you put into real estate or other investments.<\/p>\n\n<p class=\"wp-block-paragraph\">If diversification is the blueprint, then asset allocation \u2013 in other words, the structure of your assets \u2013 is the foundation of your house. It determines how solidly the building stands, not the colour of the walls or the model of the kitchen. Numerous studies confirm exactly this: it isn&#8217;t the choice of individual products but the way you split your assets that has the greatest impact on long-term investment success. Your asset allocation is what you align every other investment decision with.<\/p>\n\n<p class=\"wp-block-paragraph\">Before we get into the details, it&#8217;s worth looking at the big picture. Your assets can be divided into three areas, each with a different job: the <strong>liquidity reserve<\/strong> as a safety net, the <strong>low-risk portion<\/strong> as an anchor of stability and the <strong>high-risk portion<\/strong> as the engine of returns.<\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"The_liquidity_reserve_your_safety_net\">The liquidity reserve: your safety net<\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">Every sound financial plan includes a liquidity reserve \u2013 an emergency fund of three to six months&#8217; expenses in your bank account. This reserve is there to cushion unforeseen expenses such as job loss, illness or major repairs without you having to touch your investments.<\/p>\n\n<p class=\"wp-block-paragraph\">Even though the liquidity reserve also sits in your bank account at low risk, it is not part of your asset allocation. The difference: the low-risk portion of your investments is a deliberate strategic decision within your portfolio. The liquidity reserve, by contrast, is a prerequisite that has to be in place before you even think about investing. It&#8217;s reserved for emergencies \u2013 and therefore off-limits for investment purposes. Paying off any consumer loans also takes priority \u2013 their interest exceeds any realistic investment return.<\/p>\n\n<p class=\"wp-block-paragraph\">Only what&#8217;s left after your emergency fund and paying off debt is your freely available investment capital. And it&#8217;s exactly this capital that you now structure through asset allocation.<\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"Your_risk_profile_determines_the_split\">Your risk profile determines the split<\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">How you split your freely available assets depends on your individual risk profile \u2013 that is, on the interplay between your risk tolerance and your risk capacity, which we covered in detail in <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/investing-the-magical-triangle-of-investment\/\" data-type=\"post\" data-id=\"259\" target=\"_blank\" rel=\"noreferrer noopener\">Lesson 2<\/a>.<\/p>\n\n<p class=\"wp-block-paragraph\">A quick reminder: risk tolerance describes how much of a price loss you can stomach without lying awake at night or selling in a panic. Risk capacity describes how much loss your wallet can absorb without putting you in financial difficulty \u2013 determined by your financial situation and your investment horizon.<\/p>\n\n<p class=\"wp-block-paragraph\">Both factors need to be in line. An example: you&#8217;re young, earn a good salary and could easily cope with a 50% price loss financially. But at minus 20% you get nervous and sell. In that case it&#8217;s not your risk capacity that counts but your risk tolerance \u2013 it sets the tighter limit. Conversely, if you see yourself as a risk-taker but want to buy a flat in three years, you should stick to your lower risk capacity. In short: whichever of the two factors is more cautious sets the limits.\u00a0<\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"From_theory_to_practice_splitting_your_assets\">From theory to practice: splitting your assets<\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">Based on your risk profile, you divide your freely available investment capital into two parts: a high-risk portion and a low-risk portion. As a rule of thumb: the higher the equity share, the riskier \u2013 but also the higher-yielding \u2013 your portfolio.<\/p>\n\n<p class=\"wp-block-paragraph\">Let&#8217;s assume a fictitious investment capital of CHF 100,000 \u2013 your emergency fund is already in place. You have a regular income and your running costs under control. Five typical ways to split your assets:<\/p>\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Risk profile<\/th><th>High-risk*<\/th><th>Low-risk**<\/th><th>Historical return p.a.***<\/th><th>Max. loss***<\/th><th>Min. investment horizon<\/th><\/tr><\/thead><tbody><tr><td>Defensive<\/td><td>0\u201320%<\/td><td>80\u2013100%<\/td><td>1\u20132%<\/td><td>up to \u201312%<\/td><td>0\u20132 years<\/td><\/tr><tr><td>Conservative<\/td><td>20\u201340%<\/td><td>60\u201380%<\/td><td>2\u20133%<\/td><td>up to \u201323%<\/td><td>3\u20134 years<\/td><\/tr><tr><td>Balanced<\/td><td>40\u201360%<\/td><td>40\u201360%<\/td><td>3\u20134%<\/td><td>up to \u201335%<\/td><td>5\u20137 years<\/td><\/tr><tr><td>Dynamic<\/td><td>60\u201380%<\/td><td>20\u201340%<\/td><td>4\u20135%<\/td><td>up to \u201346%<\/td><td>7\u20139 years<\/td><\/tr><tr><td>Aggressive<\/td><td>80\u2013100%<\/td><td>0\u201320%<\/td><td>5\u20136%<\/td><td>up to \u201358%<\/td><td>10+ years<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">*Equities, optionally supplemented by real estate, commodities, crypto or other asset classes; **bank deposits, possibly high-quality bonds (e.g. Swiss federal government bonds); ***Return: estimated real figures from the perspective of Swiss investors (adjusted for currency and inflation), based on a long-term real equity return of around 6% and a real return of around 1% for high-quality bonds, weighted by risk profile. Max. loss: based on the largest historical drawdown of the MSCI ACWI (\u201358%, 31 October 2007 \u2013 9 March 2009; source: MSCI). Past performance is no guarantee of future results.<\/figcaption><\/figure>\n\n<p class=\"wp-block-paragraph\">For the aggressive profile, we recommend an investment horizon of at least 10 years because of its high volatility. More conservative models with a low equity share, on the other hand, are also suitable for shorter periods.<\/p>\n\n<h3 class=\"wp-block-heading\"><span id=\"The_high-risk_portion_equities_at_the_core_add-ons_as_satellites\">The high-risk portion: equities at the core, add-ons as satellites<\/span><\/h3>\n\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7] wp-block-paragraph\">The high-risk portion is the return engine of your portfolio \u2013 and its most important building block is equities.<\/p>\n\n<div style=\"height:10px\">\n\t\n\t\n<\/div>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-text-align-center font-claude-response-body break-words whitespace-normal leading-[1.7] wp-block-paragraph\"><strong><span style=\"color: #37c392;\">\u201c<\/span><\/strong>In the high-risk portion, there&#8217;s no way around equities.<strong><span style=\"color: #37c392;\">\u201d<\/span><\/strong><\/p>\n<\/blockquote>\n\n<div style=\"height:20px\">\n\t\n\t\n<\/div>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7] wp-block-paragraph\">In concrete terms, it does four jobs:<\/p>\n\n<ul class=\"wp-block-list [li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\n<li><strong>Long-term wealth building:<\/strong> Equities are the asset class with the highest historical return \u2013 and compounding makes your money grow exponentially over decades.<\/li>\n\n\n\n<li><strong>Inflation protection:<\/strong> While bank deposits lose value in real terms, equities offer effective long-term protection against inflation.<\/li>\n\n\n\n<li><strong>A stake in the global economy:<\/strong> With a global ETF, you benefit from the growth of thousands of companies \u2013 without having to analyse a single one.<\/li>\n\n\n\n<li><strong>Passive income:<\/strong> Broadly diversified equity ETFs pay out dividends regularly \u2013 depending on the fund, either straight to your account or automatically reinvested, which boosts the compounding effect.<\/li>\n<\/ul>\n\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7] wp-block-paragraph\">ETFs that track broad market indices across all regions of the world are particularly well suited as investment vehicles. You&#8217;ll find out why we consider ETFs especially attractive for investing in <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/in-etfs-investing\/\" target=\"_blank\" data-type=\"post\" data-id=\"508\" rel=\"noreferrer noopener\">Lesson 6<\/a>.<\/p>\n\n<h4 class=\"wp-block-heading text-text-100 mt-2 -mb-1 text-base font-bold\"><span id=\"A_global_ETF_as_the_foundation\">A global ETF as the foundation<\/span><\/h4>\n\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7] wp-block-paragraph\">The simplest and at the same time most elegant solution: with a single global ETF \u2013 such as the Vanguard FTSE All-World or an MSCI ACWI ETF \u2013 you invest in thousands of companies from developed and emerging markets, weighted by market capitalisation. One purchase, global diversification, minimal effort. That&#8217;s the core idea of passive investing \u2013 and the ideal starting point for most investors.<\/p>\n\n<h4 class=\"wp-block-heading text-text-100 mt-2 -mb-1 text-base font-bold\"><span id=\"Targeted_add-ons_using_the_core-satellite_principle\">Targeted add-ons using the core-satellite principle<\/span><\/h4>\n\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7] wp-block-paragraph\">If you want to go beyond this foundation, you can apply the core-satellite approach from <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/diversification\/\" target=\"_blank\" rel=\"noopener\">Lesson 3<\/a>. The core \u2013 70 to 100% of the high-risk portion \u2013 remains a broadly diversified equity ETF. If you like, you can fill the rest, up to a maximum of 30%, with targeted add-ons in the satellite:<\/p>\n\n<ul class=\"wp-block-list [li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\n<li><strong>Real estate<\/strong> via globally diversified REITs (real estate investment trusts) can improve the risk-return ratio thanks to their partly lower correlation with the stock market.<\/li>\n\n\n\n<li><strong>Commodities<\/strong> such as gold can act as an inflation hedge and crisis buffer \u2013 but don&#8217;t generate any ongoing income.<\/li>\n\n\n\n<li><strong>Cryptocurrencies<\/strong> such as Bitcoin are among the most volatile asset classes of all \u2013 if you invest here, you should be able to withstand sharp swings and only use money you could do without in an extreme case.<\/li>\n\n\n\n<li>Other options such as <strong>collectibles<\/strong>, <strong>crowdlending<\/strong>, factor ETFs or individual stocks are conceivable for risk-takers \u2013 as a small add-on, not as a core building block.<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\"><strong>Rule of thumb:<\/strong> the more exotic the investment, the smaller its weighting.<\/p>\n\n<h3 class=\"wp-block-heading\"><span id=\"The_low-risk_portion_security_and_availability\">The low-risk portion: security and availability<\/span><\/h3>\n\n<p class=\"wp-block-paragraph\">The low-risk portion is the anchor of stability in your portfolio \u2013 and a sedative for your nerves. When stock markets drop 30% yet again, this is the part that keeps you calm. In concrete terms, it does three jobs:<\/p>\n\n<ul>\n<li class=\"whitespace-normal break-words pl-2\"><strong>Psychological anchor:<\/strong> When not everything is in the red, it&#8217;s easier to hold on and make better decisions.<\/li>\n<li class=\"whitespace-normal break-words pl-2\"><strong>Flexibility:<\/strong> If your circumstances change unexpectedly \u2013 a new job, a move, unplanned expenses beyond your emergency fund \u2013 you have room to manoeuvre.<\/li>\n<li class=\"whitespace-normal break-words pl-2\"><strong>Rebalancing ammunition:<\/strong> After a crash, you can buy equities cheaply and bring your portfolio back into balance (more on this in <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/rebalancing\/\" target=\"_blank\" rel=\"noopener\">Lesson 5<\/a>).<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">Bank deposits \u2013 in a savings or personal account \u2013 are the simplest and most liquid option. You can access them at any time. In Switzerland, deposits of up to CHF 100,000 per person and bank are protected by deposit insurance. The expected return is clear: at best some protection against inflation, but no real growth in wealth. That&#8217;s not this portion&#8217;s job anyway \u2013 it&#8217;s meant to give you security and room to act.<\/p>\n\n<p class=\"wp-block-paragraph\">High-quality bonds \u2013 such as Swiss federal government bonds with a top \u201cAAA\u201d rating \u2013 also offer a high level of security. Historically, however, their return in Switzerland has been close to inflation. If you&#8217;re hoping for a meaningful return after inflation, Swiss bonds will usually disappoint you. Still, they can play a role as a stabiliser in a portfolio \u2013 especially for investors with a balanced or conservative profile.<\/p>\n\n<p class=\"wp-block-paragraph\">Other options such as medium-term notes or fixed-term deposits offer a bit more return than a savings account, but tie up your capital for a fixed term. You&#8217;ll find an overview in <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/investing-the-magical-triangle-of-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">Lesson 2<\/a>.<\/p>\n\n<div style=\"height:10px\">\n\t\n\t\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\"><strong><span style=\"color: #37c392;\">\u201c<\/span><\/strong>Setting your individual asset allocation, tailored to your risk profile, is the be-all and end-all of investing.<strong><span style=\"color: #37c392;\">\u201d<\/span><\/strong><\/p>\n<\/blockquote>\n\n<div style=\"height:20px\">\n\t\n\t\n<\/div>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/04\/Asset_Allocation_Weltportfolio_EN.png\" alt=\"\" class=\"wp-image-16698\"\/><figcaption class=\"wp-element-caption\">Example asset structure for people with a dynamic risk profile \u2013 the second-highest of five risk levels. The core consists of a single global equity ETF (e.g. FTSE All-World or MSCI ACWI). Satellite positions such as real estate, commodities or cryptocurrencies are optional. In the low-risk portion, bank deposits and possibly high-quality bonds provide stability. The liquidity reserve is not shown \u2013 it sits outside the asset allocation. (Source: own illustration)<\/figcaption><\/figure>\n\n<h2 class=\"wp-block-heading\"><span id=\"And_what_about_Pillar_3a\">And what about Pillar 3a? <\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">A question we get again and again: where in my asset allocation does my 3a money actually belong \u2013 low-risk or high-risk?<\/p>\n\n<p class=\"wp-block-paragraph\">Our answer: neither. Your 3a assets are tied-up retirement savings \u2013 you can&#8217;t simply withdraw them whenever you want. Early withdrawals are only possible in a few cases, such as buying a home, emigrating or becoming self-employed. That&#8217;s why Pillar 3a doesn&#8217;t belong in the same drawer as your freely available assets but follows its own rules.<\/p>\n\n<p class=\"wp-block-paragraph\">That doesn&#8217;t mean you should ignore it, though \u2013 quite the opposite. If you still have 10, 20 or more years until retirement, you&#8217;re sitting on a huge compounding lever. And that&#8217;s exactly why we recommend investing your third pillar in equities. The biggest return killer? Fees. Traditional bank products often charge 1% or more per year \u2013 sounds like little, but over the long term it can add up to tens of thousands of francs in lost returns. Low-cost online providers with fees below 0.5% make a huge difference here.<\/p>\n\n<p style=\"text-align: center;\"><span style=\"color: #37c392;\"><i><em>\u2013 Partner offers \u2013<\/em><\/i><\/span><\/p>\n<p class=\"has-text-align-center\"><em>Still looking for the right financial solution?&nbsp;<a href=\"https:\/\/schweizerfinanzblog.ch\/en\/our-recommendations\/\" target=\"_blank\" rel=\"noreferrer noopener\">Our recommendations<\/a>&nbsp;\u2013 with attractive sign-up bonuses.<\/em><\/p>\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/schweizerfinanzblog.ch\/en\/our-recommendations\/\" target=\"_blank\" rel=\" noreferrer noopener\"><img decoding=\"async\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/02\/Our-Favourites_1-1.png\" alt=\"Recommendations EN\" class=\"wp-image-15756\"\/><\/a><\/figure>\n\n<p style=\"text-align: center;\"><span style=\"color: #37c392;\">&#8211; &#8211; &#8211; &#8211; &#8211;<\/span><\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"Conclusion\">Conclusion<\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">Asset allocation is the most important decision you make when investing \u2013 more important than the choice of individual products, more important than the timing of your entry, more important than whether you buy ETF A or ETF B. It&#8217;s your guiding star, the point you align every other investment decision with.<\/p>\n\n<p class=\"wp-block-paragraph\">The principle is simple: first, secure your liquidity reserve. Then divide your freely available assets into a high-risk and a low-risk portion based on your risk profile. In the high-risk portion, broadly diversified equity ETFs form the core \u2013 if you like, you can add to them using the core-satellite principle. In the low-risk portion, bank deposits provide stability and a good night&#8217;s sleep. You look at your 3a assets separately \u2013 invested in equities and at low cost.<\/p>\n\n<p class=\"wp-block-paragraph\">Write down your target allocation \u2013 so that you can monitor it periodically and take corrective action when needed. Because when equities rise or fall, the weighting shifts automatically. How to restore your original portfolio structure easily and at low cost is the topic of our next lesson: <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/rebalancing\/\">Rebalancing<\/a>.<\/p>\n\n<p class=\"wp-block-paragraph\">You&#8217;ll find an overview of all lessons here: <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/invest-in-8-lessons\/\" data-type=\"page\" data-id=\"776\">Learn to invest \u2013 in eight lessons<\/a>.<\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"You_might_also_be_interested_in\">You might also be interested in<\/span><\/h2>\n\n<link rel=\"stylesheet\" href=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/themes\/schweizerfinanzblog\/components\/post-list-component\/post-list-component.css\">\n\n<div class=\"post-list-componenet pt-2 pb-4\">\n\t<div class=\"row\">\n\t\t\t\t\t\t\n\t\t <div class=\"col-xl-6\">\n\t\t\t <a class=\"text-decoration-none\" href=\"https:\/\/schweizerfinanzblog.ch\/en\/rebalancing\/\">\n\t\t\t\t<div class=\"d-flex post-list-card\">\n\t\t\t\t\t<div class=\"post-list-image \">\n\t\t\t\t\t\t<div class=\"image-wrapper\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/06\/Titelbild_Rebalancing_final_EN.png\" class=\"attachment-1920x1297 size-1920x1297 wp-post-image\" alt=\"Rebalancing\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/06\/Titelbild_Rebalancing_final_EN.png 2400w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/06\/Titelbild_Rebalancing_final_EN-768x432.png 768w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/06\/Titelbild_Rebalancing_final_EN-1536x864.png 1536w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/06\/Titelbild_Rebalancing_final_EN-2048x1152.png 2048w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"post-list-title px-2 d-flex align-items-center\">\n\t\t\t\t\t\t<p class=\"\">Rebalancing: How to get your portfolio back in balance<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t\n\t\t <div class=\"col-xl-6\">\n\t\t\t <a class=\"text-decoration-none\" href=\"https:\/\/schweizerfinanzblog.ch\/en\/diversification\/\">\n\t\t\t\t<div class=\"d-flex post-list-card\">\n\t\t\t\t\t<div class=\"post-list-image \">\n\t\t\t\t\t\t<div class=\"image-wrapper\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/06\/Titelbild_Diversifikation_final_EN.png\" class=\"attachment-1920x1297 size-1920x1297 wp-post-image\" alt=\"Diversification\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/06\/Titelbild_Diversifikation_final_EN.png 2400w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/06\/Titelbild_Diversifikation_final_EN-768x432.png 768w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/06\/Titelbild_Diversifikation_final_EN-1536x864.png 1536w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2026\/06\/Titelbild_Diversifikation_final_EN-2048x1152.png 2048w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"post-list-title px-2 d-flex align-items-center\">\n\t\t\t\t\t\t<p class=\"\">Diversification: the only \u201cfree lunch\u201d in investing<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n<\/div>\n<link rel=\"stylesheet\" href=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/themes\/schweizerfinanzblog\/components\/post-list-component\/post-list-component.css\">\n\n<div class=\"post-list-componenet pt-2 pb-4\">\n\t<div class=\"row\">\n\t\t\t<\/div>\n<\/div>\n<h2 class=\"wp-block-heading\"><span id=\"Updates\">Updates<\/span><\/h2>\n\n<p>2026-06-12: Minor adjustments made. <\/p>\n<p>2026-05-19: Table of historical returns and losses adapted to Swiss conditions (adjusted for inflation and currency).<\/p>\n<p>2026-04-10: Article completely revised and updated.<\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"Disclaimer\">Disclaimer<\/span><\/h2>\n\n<p class=\"wp-block-paragraph\"><strong>Disclaimer: <\/strong>Investing involves the risk of loss. You have to decide for yourself whether or not you want to take on these risks.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Errors excepted:<\/strong> We have written this article on asset allocation to the best of our knowledge and belief. Our goal is to provide you, as a private investor, with information on financial topics that is as objective and meaningful as possible. If we have nevertheless made mistakes, or if important aspects have been forgotten and\/or are no longer up to date, we&#8217;d be grateful if you let us know.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How much of your money belongs in equities \u2013 and how much stays in your bank account? The answer is the most important decision you&#8217;ll make when investing. Not picking the right ETF, not the perfect moment to get in \u2013 but how you structure your assets. In this fourth lesson of our financial guide, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17379,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[176,182],"tags":[216,319,308,320],"class_list":["post-9530","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-passive-investing","category-basics-en","tag-asset-allocation-en","tag-asset-classes","tag-etf","tag-world-portfolio"],"acf":[],"_links":{"self":[{"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/posts\/9530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/comments?post=9530"}],"version-history":[{"count":18,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/posts\/9530\/revisions"}],"predecessor-version":[{"id":18665,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/posts\/9530\/revisions\/18665"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/media\/17379"}],"wp:attachment":[{"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/media?parent=9530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/categories?post=9530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/tags?post=9530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}