Portfolio diversification is a risk management technique. By investing in a wide variety of instruments you will protect your assets against the volatility of a single instrument or asset category.
Swiss annuities are to be categorized as very low-risk investments. However, thanks to their unique characteristics, they are actually in a category of their own.
However, portfolio diversification should not pertain to the asset categories.
While investing in a Swiss annuity you are also diversifying your assets
- currency-wise -> you can invest in CHF, EUR, USD and other currencies
- geographically -> your money is being invested through Switzerland-based companies
- sector-wise -> you are not placing your money in a bank
These are only some of the characteristics that make Swiss annuities absolutely unique.
