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ChainlessINVEST – everything you need to know

This article is for you if you have looked into the ChainlessINVEST and investing in the stock market as a whole and have come to the conclusion that the ChainlessINVEST is a good fit for you.

Info: If you want to read this article in German including relevant screenshots, please click here.

The ChainlessINVEST is a certificate on an actively managed portfolio, where we focus on the selection of sustainable high-quality companies. The pre-selection is based on a fundamental analysis. Whether we then buy a stock into our portfolio depends on whether the current price is at a discount to fair value or not. We sell it when it has risen significantly above fair value. Money that we cannot currently invest in attractive individual stocks is invested in the MCSI World, which tracks the economies of developed countries as a whole. You can read the complete strategy directly at Wikifolio. The goal of our strategy is to beat the overall market in the long term and to generate a higher return for the investor.

How does it work?

If the strategy is right for you and you have a long-term investment horizon, you can benefit from the experience of our financial expert Pascal Brütsch and a long-term excess return. Your advantage: All decisions and changes of the portfolio are 100% transparent and traceable on Wikifolio. The individual trades, the return of the individual positions, the daily return and the total costs.

So, now that you know what the ChainlessINVEST certificate is and offers, I’ll explain how you can invest.

Step 1 – Open a broker

To buy the ChainlessINVEST, you need an online broker that offers the certificate. A broker is always a financial service provider that arranges trading objects for you as an investor. The big banks like ComDirect, DKB and Concors include an online broker, so you don’t need a bank employee or financial advisor in a dark suit. If you are a German resident, ComDirect is recommended, which I use myself to invest in the certificate. Therefore, this guide is designed for buying at ComDirect. With the other brokers, the purchase works similarly simple.

With a click on “Open a account” you can easily open your securities account.

Fill in your data, complete the necessary verification steps and you have opened your securities account.

Step 2 – Deposit money into your clearing account

In order to make purchases, you must transfer the corresponding amount to your so-called clearing account.

Note: Certificates can only be bought in whole pieces. So check the price beforehand and then transfer some more money according to your desired quantity, so that you have a sufficient buffer for the order fees. (The bank charges order fees?! – don’t panic, just read on).

In the overview of your ComDirekt account you can see your securities account and your clearing account including the IBAN of your clearing account. You transfer the desired amount to this account.

Step 3 – Search for a certificate

As soon as your money is in the clearing account, you can click on the “Buy” button next to your deposit.

You will then be asked to verify the TAN.

After you have done this, you will automatically get to the “domestic order” mask.

You fill this mask as follows:

  • Buy
  • Security: DE000LS9RFZ5
  • Pieces/ Nominal: (The number of certificates you want to buy)
  • Stock exchange: Stuttgart

Then you can click on “Next” below and place your order.

Order fees?

ComDirect may still have a promotion that you pay only 3.99€ for a trade within the first 12 months. However, there may be more fees.

The fees are similar for all banks for the purchase of certificates.

Just consider beforehand whether the purchase of “only” one certificate is worthwhile, since after all about 2% of the total amount (depending on the status of the certificate) for the purchase. The certificate has to make up for this fee in performance first, so that you can profit.

If you buy 10 certificates directly, it would be equivalent to only 0.2% total fees per certificate.

However, with a very long time horizon, the order fee is negligible, because by then the long-term price gains will make up for the percentage paid once at the beginning.

Step 4 – Wait and profit from long-term rising prices

In the long term, the market is going up. So you can sit back and let time and your money work for you.

Step 5 – Buy regularly and build up your portfolio piece by piece

As you can see, the price does not go straight up. Fluctuations in the market are what the experienced investor can use to buy more and thus increase his positions.

Alternatively, you can also set up a permanent transfer to your clearing account and buy, for example, once a month, every 4 months or every X months, no matter where the price is. Personally, I buy every 3 months with a larger sum – no matter where the price is, because I know that in the long term it will be higher than today.

Now you know what the ChainlessINVEST certificate is and how to get it. Finally, one more addition:

Is the ChainlessINVEST suitable for you at all?

The ChainlessINVEST portfolio is a further development of the passive investment strategy. A passive investment strategy means investing in the broad market at regular, predefined intervals and betting on the long-term rising prices. One is not distracted by short-term ups and downs of the market, but profits with an investment horizon of several years or decades.

If you have never invested before and had nothing to do with price fluctuations, you should now approach passive investing and ignore the ChainlessINVEST for the time being.

However, if you already have some experience in the stock market and want to buy the ChainlessINVEST certificate, then you now know how to do it.

BTW: Be sure to check out the podcast episode with Pascal Brütsch, where we also talk in detail about the ChainlessINVEST, among other things.