Types of Financial Instruments Available in the Swiss Market

 

Switzerland has a global reputation as a major financial center, offering a wide range of financial instruments that cater to investors of all generations and backgrounds. Here is an overview of some of the main types of financial instruments available in the Swiss market.

 

Types of Financial Instruments Available in the Swiss Market

Here is an overview of some of the main types of financial instruments available in the Swiss market:

 

Shares (common shares and convertible bonds)

·        Common shares: represent partial ownership in a company. Investors can trade shares in large Swiss companies and small and medium-sized enterprises.

·        Convertible bonds: are bonds that can be converted into shares in the issuing company at a later date. These instruments combine the characteristics of fixed income and stocks.

 

Bonds

·        Government bonds: issued by the Swiss government and are considered one of the safest investments.

·        Corporate bonds: issued by companies to finance their operations. Risks and returns vary depending on the financial strength of the company.

·        Floating-rate bonds: the interest rate paid on these bonds varies over time according to changes in a specific benchmark index.

 

Mutual Funds

·        Mutual Funds: Pool money from many investors to invest in a variety of assets, such as stocks, bonds, and real estate.

·        Index Funds: Track the performance of a specific market index, such as the Swiss SMI.

·        Hedge Funds: Use complex investment strategies to generate positive returns in various market conditions.

 

Derivative Products

·        Futures: An agreement between two parties to buy or sell a financial asset at a specified price on a specified future date.

·        Contracts for Difference (CFD): Contracts that allow investors to speculate on the rise or fall in the price of a financial asset without actually owning it.

·        Options: Give the buyer the right (but not the obligation) to buy or sell a financial asset at a specified price within a specified period of time.

 

Real Estate

·        Residential and commercial real estate: Investors can buy real estate in Switzerland for the purpose of leasing or selling in the future.

·        Real Estate Investment Trusts (REITs): Invest in real estate and distribute a large portion of their income to investors in the form of dividends.

 

Currencies

·        Forex trading: Allows investors to buy and sell foreign currencies to profit from fluctuations in exchange rates.

 

Why invest in Switzerland?

·        Political and economic stability: Switzerland has a stable and secure investment environment.

·        Diversity: The Swiss market offers a wide range of financial instruments to meet the different needs of investors.

·        Large market: The Swiss market is a deep and liquid market, making it easy for investors to buy and sell financial assets.