frankly Gentle 25 Index

0.00% TER, 63% bonds, passive index. frankly made conservative 3a investing almost free.

frankly Gentle 25 Index ranks #21 among 67 3a investment funds in Switzerland. It's frankly's most conservative index fund, designed for investors who want minimal equity risk at the lowest possible cost. With a total fee of just 0.44% and a passive approach, it's ideal for cautious investors who still want some market participation.

What Does a 0.44% Total Cost Mean for This Allocation?

The TER is 0.00% (thanks to Swisscanto's fee waiver for 3a funds), and you pay only the 0.44% frankly flat fee. Total cost: 0.44%. That's roughly a third of what traditional banks charge for similar conservative allocations. PostFinance's comparable ESG 50 fund charges 1.20% TER alone.

The five-year return of +10.42% reflects the heavy bond weighting. After inflation, you're looking at roughly 1-1.5% real annual growth. The three-year return of +19.00% benefited from the bond recovery in 2023-2024 after the sharp rate-driven decline in 2022. Modest but predictable.

What Actually Stands Out

This is pure passive index investing with no human stock-picking. The fund tracks broad market indices for both its 25% equity and 63% bond allocations. You get exactly the market return minus the small 0.44% fee. No manager risk, no style drift, no surprises.

The CHF 72 million fund size is adequate for a conservative fund with lower trading volume. frankly's platform (built by ZKB/Swisscanto) provides a clean digital experience with easy strategy switching. If your risk tolerance increases over time, you can move to a higher equity allocation within the frankly ecosystem without any transfer hassle.

What Most Reviews Miss

With only 25% in stocks, this fund is heavily exposed to interest rate movements. When the Swiss National Bank raised rates in 2022, bond-heavy portfolios got hit hard. The five-year return of +10.42% includes that painful drawdown. A 3a savings account would have delivered a smoother (if lower) return over the same period.

The 0.44% flat fee, while reasonable, is proportionally more significant on a low-return portfolio. If the fund returns 2% per year, you're giving up more than 20% of your gains to fees. For this allocation, a top 3a savings account might actually deliver comparable net returns with zero volatility.

The Bottom Line

frankly Gentle 25 Index is the best low-cost option for investors who want conservative 3a investing with a passive strategy. It's cheap, simple, and does exactly what it says. But at 25% equity, you should seriously consider whether a top 3a savings account might serve you just as well with less complexity. Compare both approaches with our Pillar 3a comparison tool.

Verdict: The cheapest conservative 3a fund from a reputable platform, ideal for near-retirees or very cautious investors who want some market exposure.