Performance and returns

The performance and return data in the app is updated during the morning and shows the previous day’s values. Since the stock exchanges are closed at weekends and we do not receive any current data during this time, you can still see the data from Friday until Tuesday morning (before 11:00 a.m.), which was updated on Monday (around 11:00 a.m.).If you have made a deposit, you will always see it after 2.00 pm the following day if you have made it on the earliest possible value date. We will also send you an e-mail to confirm receipt.

However, as long-term investors, the daily fluctuation of the markets is not our main focus. We focus on optimizing your investment strategy over a longer period of time.

No, as with any investment on the financial markets, returns cannot be guaranteed. The values of equities, funds, ETFs and other asset classes fluctuate depending on market developments. However, our diversified portfolios are designed to minimize risk and provide stable long-term returns.

Long-term investing is the key to stable returns. Over a longer period of time, market fluctuations are evened out and the compound interest effect ensures additional growth. The longer you invest, the greater the chance of a positive return. We recommend an investment period of at least 5-7 years. As an illustration, the probability of a positive return after

• 1 day is 53.4%
• 3 months at 69.3%
• 1 year at 77.6%
• 5 years at 92.6%
• 10 years at 97.3%

In other words: If you catch the worst day to invest, you still have a 97.3% chance of being up in the last 100 years after 10 years.

Market fluctuations are part and parcel of any investment, but thanks to our broad diversification, the risk is minimized. In such phases, it is important to remain calm and stick to your long-term strategy, as short-term fluctuations do not usually have a major impact on long-term results.

Investing money always involves risk, especially in the short term. But in the long term, markets tend to rise. The longer you invest, the lower the risk. It is therefore important to start early and hold on to your investments even in times of crisis. You can also reduce the risk by making deposits and withdrawals gradually to avoid unfavorable timing.

The best time to invest was 20 years ago, the second best time is now. As an illustration, the probability of a positive return after

• 1 day is 53.4%
• 3 months at 69.3%
• 1 year at 77.6%
• 5 years at 92.6%
• 10 years at 97.3%

At arvy, we implement the following strategy: one-time payment + savings plan (dollar-cost averaging), which increases the probability of a positive return in the long term. We recommend the same investment plan to you!

The first step is to start with a one-time payment, because in the long run it is better to simply be in the market than to time it. If you make a larger initial investment, you give your money the maximum chance to grow and benefit directly from the compound interest effect.

With dollar-cost averaging (DCA), you then regularly add a fixed amount, regardless of the share price. By sticking to this routine, you avoid the stress of timing the market and smooth out the effects of market fluctuations. When prices are low, you buy more shares; when prices are high, you buy less.

The beauty of DCA is its simplicity and ability to reduce emotional decisions. Especially for new investors or those who are afraid of market fluctuations, it’s a great way to focus on long-term growth rather than daily price movements. By sticking with DCA, you allow compound interest to work its magic over time. Your investments grow, become more and build themselves up as you continue to invest, say, 10% or 20% of your monthly income. It’s best to automate your deposits with a standing order. That way you don’t have to think about it and won’t be tempted to speculate on a point in time.

arvy keeps you up to date with your investments, provides you with valuable insights and makes sure it’s a bit of fun too. It’s as simple as it sounds: open an account, choose your risk profile, start with a one-off payment as your initial investment and set up a monthly standing order for dollar-cost averaging. That’s it – we’ll take care of the rest!

Emotional decisions when investing can be detrimental in the long term. Especially in turbulent times, it is important to remain calm and rational. Even if it is difficult, you should stick to your plan and continue to invest regularly – or take the opportunity to buy at low prices.

Why you shouldn’t sell your investments despite temporary price losses:

Historically, markets have always recovered. Every financial crisis, no matter how severe or protracted, has been overcome at some point in the past. History shows that markets recover in the long term, even after the biggest setbacks. As an illustration, the probability of a positive return after

1. 1 day is 53.4%
2. 3 months at 69.3%
3. 1 year at 77.6%
4. 5 years at 92.6%
5. 10 years at 97.3%

• Diversification protects you from extreme losses

Your arvy portfolio is broadly diversified and invests in around 30 individual stocks from different sectors, countries and regions. This minimizes the risk of a total loss. A crisis never affects all markets with the same intensity at the same time.

• You certainly don’t want to miss the next upswing

After heavy price losses, a recovery often occurs faster than many expect. Early investors can thus benefit from a strong upward movement that can quickly make up for the price loss. Never forget the stock market wisdom of André Kostolany: “If you don’t have stocks when they fall, you won’t have them when they rise.”

• “Market timing” is usually a risky undertaking

Trying to find the perfect time to enter and exit the market is a difficult art and often leads to disappointment. If you always try to catch the best moment, in many cases you will not catch up with the markets. It is much safer to stay calm and profit from the fluctuations instead of constantly chasing after them.

• Crises also offer opportunities

The lower the markets fall, the cheaper you can buy more. A prolonged downturn means more opportunities to invest when prices are low and benefit from a potential upturn in the long term.

• You are not alone – arvy is by your side

Investing is a long-term process and you don’t have to go it alone. With arvy, you have a reliable partner who supports you with regular updates and valuable information. You are not just a passive investor, but an active part of the journey. You are part of the ship and part of the crew – together we navigate through the turbulent phases and head for sustainable success.

You can find more information, graphics and exciting insights on this topic in our blog post.

The level of returns depends on your chosen investment strategy and your risk profile. Our strategies are based on scientifically sound approaches that aim to achieve stable and attractive results over the long term. While conservative strategies offer lower fluctuations and more stable returns, riskier approaches can achieve higher returns in the long term – but with higher fluctuations.

Generally speaking:

Equities yield CHF 6-7% per year.

Bonds yield CHF 2-4% per year.

The performance of your portfolio is measured using the money-weighted return (MWR) rather than the time-weighted return (TWR)

.• MWR takes into account the timing of your deposits and withdrawals, showing how effectively your portfolio has grown based on your own transactions.

• TWR, on the other hand, reflects the pure investment performance, independent of cash flows.

In the arvy app, you can view these values at any time and track your portfolio’s development. arvy calculates returns using the money-weighted return (MWR), which reflects the actual growth of your invested capital. This method shows the real return you have achieved as an investor, as it considers the impact of when you invested or withdrew money. The advantage of this method is that it aligns with your personal investment experience—if you invested at a favorable time, this is reflected in the return. However, the downside is that MWR is less suitable for comparing different investment strategies, as individual deposit and withdrawal timings have a significant impact on the result.