What is the Income portfolio?
This portfolio invests in ETFs that pay out dividends and interest from global markets. Instead of reinvesting this income, it's paid out to you so you can use it as a passive income stream, without having to sell your investments. 💰
This portfolio focuses on companies and sectors with historically higher dividend policies, while still keeping your risk level aligned with your investor profile.
Who is it for?
This portfolio is ideal if you want to benefit from your investments now – not just in the future.
It suits people who are:
entering retirement or early retirement
reducing their workload
looking to supplement their income with regular cash payouts
However, the Income portfolio is not the best fit if your main goal is long-term growth. Since dividends are paid out (rather than reinvested), the compounding effect is reduced, which can limit your portfolio's potential growth over time.
If you're focused on growing your wealth, the Classic or Sustainable portfolios might be more suitable.
How much income can I expect?
Your dividend income depends on:
your portfolio size
your portfolio allocation, particularly the balance between growth-oriented assets (like stocks) and more stable, income-generating assets (like bonds)
As a rough guide, a growth-oriented (which means with a higher risk level) portfolio may generate an annual dividend yield of up to 4%, based on historical performance.
⚠️ Keep in mind that this is an estimate – investment is never guaranteed, and actual returns may vary.
Here is a practical example:
Desired annual income per year | Estimated investment needed (at 4%) |
10'000 CHF | 250'000 CHF |
50'000 CHF | 1'250'000 CHF |
How it works in practice
Dividends are paid quarterly: the exact timing depends on each specific ETF and may vary across different months.
You can withdraw the income directly from your Selma account.
If you don't withdraw it, Selma will automatically reinvest the money after a while, so it keeps working for you.
How to switch to the Income portfolio
The minimum investment to activate the Income portfolio is the same as with your Classic portfolio: 2'000 CHF. However, for meaningful and consistent income generation, we recommend a portfolio size of at least 150'000 CHF.
You can select this portfolio or another one through the mobile app:
Go to Investments > Strategy > Manage portfolio.
Select the Income portfolio, then tap Continue.
Review and confirm your new investment strategy before it takes effect.
💡 Note that the Income portfolio and the Sustainable portfolio are separate base portfolios and can't be combined. You can only choose one at a time.
The Swiss bias option, however, is compatible with the Income portfolio. If you opt for it, your portfolio will increase exposure to Swiss ETFs and reduce the global share accordingly.
What happens when I activate the Income portfolio?
When you activate the Income portfolio:
Your current investments are adjusted: ETFs are sold and replaced with income-focused ones.
Your strategy and risk level remain aligned with your investor profile.
The portfolio stays broadly diversified across global markets, just like your Classic one: this ensures your investments are spread across various regions, sectors, and asset classes to help manage risk effectively.
How does the Income portfolio impact my taxes?
Income and interest from your investments are taxable.
A 35% withholding tax is applied to Swiss dividends, which you can usually reclaim when you file your tax return.
For foreign dividends, withholding tax varies by country. Some may be reclaimable under double taxation agreements.
📄 Selma shows you all relevant values in your yearly tax report.