Find your suitable 3a investment strategy

Which Pillar 3a strategy is the right one for you? Rather than simply showing you the five available investment strategies, we’ll explain how they work – and how they differ. That way, you’ll end up making a decision you can truly stand behind. We’ll compare the five strategies to hiking trails to turn abstract theory into something concrete.

When you open a Pillar 3a account with neon, it's like starting a hike. Depending on how sure-footed and steady you are, you choose your route: from defensive to aggressive, you have five investment strategies to choose from. To make your hiking experience even more personal, you can also opt for a Swiss or sustainable focus. Hiking boots laced up, summit risk in sight, ready to go!

What is a risk profile and why is it important for a Pillar 3a account?

Do you enjoy the thrill and sometimes walk along a narrow ridge? Or do you prefer to stick to well-maintained hiking trails and plan every step in advance? How much risk you’re willing to take isn’t just evident in the mountains, but also when it comes to investing. Your risk profile is what determines how your Pillar 3a money is invested.

Contributing to Pillar 3a with neon is more than just saving. Your money is invested and moves with the financial markets – sometimes up, sometimes down. That’s exactly why, with neon, you can choose from five different investment strategies. Depending on the strategy, the fluctuations can be more pronounced or more moderate. This so-called volatility can be compared to altitude changes when hiking: more of them means more effort, but often also a better view.

neon 3a investment strategies: from a gentle stroll to an alpine challenge

Defensive 25: The leisurely stroll

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Who is it for? This strategy is a good fit if stability is more important to you than returns, or if you prefer to start cautiously. With a 25 per cent equity allocation, the focus is on capital preservation. Fluctuations are low, and growth is correspondingly moderate.

Translated to the mountains: T1 hikes follow wide, well-maintained paths. Hardly any elevation gain, hardly any risk. A classic example would be a stroll along Lake Zurich.

Balanced 45: The easy hike

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Who is it for? This strategy is ideal if you want to invest for the long term and are comfortable with minor ups and downs. Around 45 per cent in equities provides more movement without things getting too uncomfortable. Your portfolio fluctuates noticeably, but in a controlled manner.

Translated to the mountains: T2 hikes are a bit more varied. The path is still well-marked, with gentle ascents and descents, for example on a hike from Männlichen to Kleine Scheidegg in the Bernese Oberland.

Dynamic 65: The classic mountain hike

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Who is it for? This strategy is suitable if you think long-term and can withstand short-term dips since the 65 per cent equity allocation offers significantly more growth potential, but also greater volatility.

Translated to the mountains: With T3, things get more alpine. Narrow paths, greater elevation gain – sure-footedness is required here. A typical T3 hike would be the 5-Lakes Walk on the Pizol in the canton of St. Gallen.

Ambitious 80: The demanding mountain tour

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Who is it for? This strategy is particularly well-suited for you if you still have many years to go before retirement – and if you can keep your cool during market fluctuations. Because with 80 per cent in equities, your Pillar 3a assets are heavily exposed to the markets. The fluctuations are clearly noticeable, but in the long term, they offer the potential for higher returns.

Translated to the mountains: T4 means concentration. The path is exposed in places, the view spectacular; you’d better not make any mistakes. An example would be the challenging ascent to the Hundstein summit in Appenzell.

Offensive 100: The alpine challenge

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Who is it for? Anyone opting for this strategy needs staying power and the ability to remain calm even when the going gets tough. Your portfolio consists almost entirely of shares. Fluctuations are sharp, and short-term setbacks are part of the deal – but in return, the chance of high returns is greatest.

Translated to the mountains: T5 is not for beginners. Steep sections, a lot of responsibility, full concentration. Comparable to a high-alpine route such as the Matterhorn trek in Valais.

The composition: What does each strategy contain?

All strategies except Offensive 100 also include property and commodity bonds. They act like sturdy hiking boots: they provide support, but also slow you down. To see how the individual strategies are composed in detail, head this way.

Your personal touch: Swiss focus or sustainability focus

You can also customise your Pillar 3a beyond the risk profile. With the Swiss focus, you increase the proportion of Swiss equities in your portfolio – ideal if you want to invest in the Swiss economy. If you opt for the sustainability focus, investments are made more heavily in ESG-compliant companies. Suitable, therefore, for investors who value sustainability. Your risk profile remains the same – but your investment journey gets a personal touch that aligns with your values.

Why time matters

Regardless of which Pillar 3a investment strategy you choose, one rule always applies: time is your strongest ally. A study by Morgan Stanley, which analysed more than 50 years of market data, shows: With an investment horizon of one year, about 23% of the months are negative.Over a ten-year period, however, this figure drops to just 3%. This means that the longer you invest, the lower the risk of making a loss on your investment. Pillar 3a is a long-term project. Those who remain patient and consistently stick to their path usually reach their destination more relaxed – whether on a hiking trail or in the markets.

Find your own path and stick to it

Sure, high returns sound tempting. But it’s of little use to you if you nervously bail out at the first downturn. It’s better to choose a strategy you understand and that lets you sleep soundly even when the markets are on a rollercoaster ride. Because if you know why you’re on a particular path, you’ll stick with it. And that makes the biggest difference over the years.

Whatever path you choose, the fees stay low. Pillar 3a at neon starts at 0.39%.