frankly Gentle 25 Index ranks #61 among 122 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 0.48% and a passive approach, it's ideal for cautious investors who still want some market participation.
What Does a 0.48% Total Cost Mean for This Allocation?
The TER is 0.00% (thanks to Swisscanto's fee waiver for 3a funds), and you pay the 0.44% frankly flat fee plus a 0.04% synthetic TER. Total cost: 0.48%. 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 +6.37% reflects the heavy bond weighting and a window that starts just before the 2022 bond crash. After inflation, there's little real growth left over that period. The three-year return of +19.34%, which no longer includes 2022, shows what the allocation delivers in calmer markets. 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 0.48% total 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 +6.37% 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.
