Why does Selma buy things step-by-step?

Updated 3 months ago by Valeria Gasik

When you transfer money to Selma, Selma does not buy all your investments at once. Instead, Selma buys investments in multiple steps in order to avoid buying all your investments at the highest possible price.

What does it mean?  

Let’s say your initial investments is CHF 9’000.-. Selma would rather buy investment products in 3 steps x for 3000.- over the course of 1–2 months instead of putting the whole 9’000.00 into the market at once.

It’s a precaution.

In case markets go up during those first months, you end up making a bit less money. However, if markets go down, you’ll also lose less because you’ve bought your investments at a lower price. In other words, this step-wise investing balances out the short-term ups and downs of financial markets.

How long does it take to invest my money?

This depends on the amount that you transfer. Smaller amounts up to CHF 1’000.00 would usually be invested within a couple of days, as it doesn't make sense to invest it in too small parts. With normal market conditions, your mix of investments is fully invested within 1–3 months.

What if I transfer money to Selma monthly?

No worries, does the exact same with monthly investments. Selma also looks at the prices of the investments to decide how much money should stay on your account and how much should be invested right away.

Are there more costs because there are more transactions?

No. All transaction costs and the Swiss stamp duty tax are included in your Selma fee.


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