Questions regarding the advice, investment process and the building blocks for the investment proposal

Why do I need to answer the questions before a recommendation can be made?

How do you come up with your investment proposal?

We want to get to know your risk profile and your preferences for investments. Through your risk profile we can derive the amount of risk which is right for you. Through your preferences for different currencies and asset classes we get to know the eligible investment universe. On the basis of all of this we come up with your individual investment proposal.

How comes that I can save so much money with DeinAnlageberater.ch despite the individual attention given?

As a young and modern company, DeinAnlageberater.ch, abstains from any unnecessary expenses. We don’t own expensive offices or run costly advertising for prestige’s sake. By consistently using digital communication channels we can serve and advise a multitude of customers at the same time. This way our costs are spread over many customers and the ensuing cost benefits are passed on to you.

Banks and insurance companies on the other hand try to minimise costs by aiming for a high degree of standardization and putting clients in predefined categories. We greatly respect the individual needs of each and every client and therefore we provide you with your own tailor made investment recommendation. All this by applying significantly lower costs than the off-the shelf offering put forward by banks.

Is it really possible to offer sound investment advice at such low costs?

The company founders have, in addition to their academic credentials, decade long experience in dealing with clients and asset management. All this knowledge was tapped to come up with the algorithm which forms the basis of our investment recommendation. Contrary to the banks we offer you straight access without compromises to our digital services. That way we can save lots of costs.

Why does DeinAnlageberater.ch make do without human advisors?

Advisors are at the end of the day only humans with emotions, preferences and goals. In our opinion, an objective result can better be achieved by our algorithms. DeinAnlageberater.ch never gets tired, is not bothered by bad mood swings and advises all the clients in a tailor-made fashion according to their individual risk profiles. DeinAnlageberater.ch is happy to serve you 24/7.

Why is it then still necessary to have a banking relationship?

Laws and regulations govern who can offer financial services to customers. Offering chequing or brokerage accounts and trading in securities can only be performed by banks. DeinAnlageberater.ch offers a service with its investment advice that doesn’t require a banking license. This is why you still need for the implementation of our recommendation a bank or broker to assist you.

I treasure the contact with my financial advisor, he is always available for me and a conversation partner in all walks of life?

DeinAnlageberater.ch is aiming deliberately for a recommendation which is not influenced by neither personal impressions nor emotions. Emotions usually are detrimental to the long-term investment success. One way to go about this is using the investment recommendation from DeinAnlageberater.ch as a benchmark and basis for discussion with your financial advisor.

Why is the conflict of interest of my financial advisor a problem?

If a financial advisor is paid by the product provider and not the client, he will naturally not put your interests first but those of the product provider. He then owes more to the bank which employs him than you. If he puts your interests above the interests of his employer, i.e., the bank, he risks his job. Your interests and the interests of the bank are in conflict. This is why advice, free of such conflicts, can only be given by an independent institution which isn’t in the business of providing products and doesn’t run any checking or brokerage accounts.

When and why is the advice changing?

How often should I ask for advice?

Risks in financial markets change at different speeds. These changes have a direct impact on the ideal weighting of each component of your asset allocation. This is why the ideal recommendation loses relevancy in the course of time. We recommend that you update your recommendation when your personal situation changes, e.g., newborn children or significant moves in the financial markets. As a general rule of thumb we deem an update of your recommendation every two to three months as advisable.

What are the different components used for the asset allocation?

At DeinAnlageberater.ch, we always speak of components for the asset allocation. We use this term because it is easily comprehensible. The legally correct definition is Exchange Traded Funds, i.e., ETF. ETFs are open mutual funds which are particularly well suited for the implementation of our recommendation because there are cost efficient, very liquid and transparent. These components so far have been mainly used by institutional investors such as pension funds or insurance companies. The legal framework for these components in Europe is particularly friendly towards the retail investor (source: Wikipedia).

How are the different components for the asset allocation checked for their eligibility?

The components selected by us are from big reputable and professional investment houses. We look out for tranparent documentation, good reputation, low costs (Total Expense Ratio TER) and best possible tradability. We decide in a totally independent fashion and contrary to banks we don’t accept any form of retrocessions (kick-backs).

Which return does DeinAnlageberater.ch promise?

DeinAnlageberater.ch does not promise a specific return per se. Returns are generated in the different asset classes. We translate your risk tolerance and investment preferences into the asset allocation which suits you best. We thereby help you avoid an overly risky asset allocation or that you take risks in asset classes which you do not want to invest in in the first place.

How can I generate returns without incurring any risks?

At DeinAnlageberater.ch, risks and rewards are always tightly linked. Nevertheless we prefer to focus on risks because otherwise investors tend to overestimate their risk tolerance. In order to generate returns you need to incur certain risks. As a sidenote it is worth mentioning that even hoarding cash, i.e., not doing anything with your money is risky because you are subject to, for example, a loss in purchasing power (inflation). We don’t assist you in the total avoidance of risk but rather with the optimal utilization of your risk tolerance and preferences for investment purposes.

How much money can I save when I invest an amount of CHF 10,000?

Your bank will try to sell you a balanced mutual fund. A balanced mutual fund which is typically offered by a bank has a load fee of 3% and running annual fee of (TER, Total Expense Ratio) of 1.55%. Over the course of a five year time horizon these costs amount to 10.75% or CH 1,075. If you take care of your investments yourself, you can bring down your costs to an estimated CHF 346 which would mean an average saving of CHF 729. We recommend cost efficient components to you.This allows you to bring down the annual running fee to an average of 0.33% and there is no load fee at all (because the components recommended by us don’t charge one in the first place). Your components can be purchased by yourself in your bank branch or via your online bank. The buying and selling of the components comes with transaction fees but these are much smaller. Additionally you need to regularly update your asset allocation recommendation. You can see for yourself that this is only a tiny fraction of the overall costs. In estimating the expected costs we assumed an investment in 8 different components. In the course of the year you request 6 recommendations for asset allocation from us and with 4 purchases and sales you align your investment portfolio with our recommendations. As far as the transaction fees are concerned, we took the standard conditions of an established online bank in the medium price segment as a benchmark.

Please don’t get us wrong, the balanced mutual fund is not a bad form of investment per se, we only take issue with the fact that you are paying way too much for it. Putting your money in a savings account or in term deposits is the cheapest way of investing, but you should bear in mind that in the long run inflation can be bigger than the interest earned. Cheap therefore doesn’t always equate into good.

DeinAnlageberater.ch  - professional, individual, cost effective, flexible

How much money can I save when I invest an amount of CHF 100,000?

Your bank will try to sell you a balanced mutual fund. A balanced mutual fund which is typically offered by a bank has a load fee of 3% and running annual fee of (TER, Total Expense Ratio) of 1.55%. Over the course of a five year time horizon these costs amount to 10.75% or CH 10,075. If you take care of your investments yourself, you can bring down your costs to an estimated CHF 2,017 which would mean an average saving of CHF 8,733.

We recommend cost efficient components to you.This allows you to bring down the annual running fee to an average of 0.33% and there is no load fee at all (because the components recommended by us don’t charge one in the first place). Your components can be purchased by yourself in your bank branch or via your online bank. The buying and selling of the components comes with transaction fees but these are much smaller. Additionally you need to regularly update your asset allocation recommendation. You can see for yourself that this is only a tiny fraction of the overall costs. In estimating the expected costs we assumed an investment in 8 different components. In the course of the year you request 6 recommendations for asset allocation from us and with 4 purchases and sales you align your investment portfolio with our recommendations. As far as the transaction fees are concerned, we took the standard conditions of an established online bank in the medium price segment as a benchmark.

Please don’t get us wrong, the balanced mutual fund is not a bad form of investment per se, we only take issue with the fact that you are paying way too much for it. Putting your money in a savings account or in term deposits is the cheapest way of investing, but you should bear in mind that in the long run inflation can be bigger than the interest earned. Cheap therefore doesn’t always equate into good.

DeinAnlageberater.ch  - professional, individual, cost effective, flexible

How much money can I save when I invest an amount of CHF 500,000?

Your bank will try to sell you a balanced mutual fund. A balanced mutual fund which is typically offered by a bank has a load fee of 3% and running annual fee of (TER, Total Expense Ratio) of 1.55%. Over the course of a five year time horizon these costs amount to 10.75% or CH 53,750. If you take care of your investments yourself, you can bring down your costs to an estimated CHF 9,128 which would mean an average saving of CHF 44,622.

We recommend cost efficient components to you.This allows you to bring down the annual running fee to an average of 0.33% and there is no load fee at all (because the components recommended by us don’t charge one in the first place). Your components can be purchased by yourself in your bank branch or via your online bank. The buying and selling of the components comes with transaction fees but these are much smaller. Additionally you need to regularly update your asset allocation recommendation. You can see for yourself that this is only a tiny fraction of the overall costs. In estimating the expected costs we assumed an investment in 8 different components. In the course of the year you request 6 recommendations for asset allocation from us and with 4 purchases and sales you align your investment portfolio with our recommendations. As far as the transaction fees are concerned, we took the standard conditions of an established online bank in the medium price segment as a benchmark.

Please don’t get us wrong, the balanced mutual fund is not a bad form of investment per se, we only take issue with the fact that you are paying way too much for it. Putting your money in a savings account or in term deposits is the cheapest way of investing, but you should bear in mind that in the long run inflation can be bigger than the interest earned. Cheap therefore doesn’t always equate into good.

DeinAnlageberater.ch  - professional, individual, cost effective, flexible

Questions on the implementation of advice

How do I make use of the investment recommendation?

We envisage different possibilities how you can make use of our investment recommendation:

  • You can implement the investment recommendation of DeinAnlageberater.ch via your bank branch or online broker.
  • You receive investment advice from a bank that you trust but you prefer to validate your bank's recommendation by asking for a fairness opinion from an independent third party.

  • You want to put pressure on the fee structure imposed on you by your bank and are looking for convincing arguments.
Do I need to implement each and every investment recommendation?

No, you don’t have to. An updated investment recommendation can show only minor deviations to the current status. The ongoing adjustments generate fees which will benefit the executing bank. In comparison with the benefit you derive from these minor adjustments, the expenses cannot be justified. Implement adjustments only when the deviation to your current asset allocation is bigger than app. 3%. For example, the weighting for European shares is upward adjusted to 18% or downward adjusted to 12% from a base of 15%. Depending on your invested amount, the fee structure with your bank and your personal preferences, adjustments for smaller amounts can also be envisioned.

Why can’t I open an account with DeinAnlageberater.ch?
Why don’t you use your own investment components?

DeinAnlageberater.ch is not a bank and cannot offer checking and brokerage accounts for regulatory reasons. We are also not an asset manager or mutual fund company and cannot create or own components. We perceive both aspects to be of advantage to us because offering and managing checking and brokerage accounts or the usage of your own investment components comes inevitably with conflicts of interests.

How does the ideal bank look like for me?

You are already conducting all of your financial transactions online or is it important for you to be able to visit your local bank branch around the corner? Are you keen on attractive fees or is it more important for you that your bank has a reputable name? DeinAnlageberater.ch is independent from the banks and brokers and therefore also not recommending any particular bank or broker. This is the only way for us to remain objective and avoid conflicts of interest.

How can I get free investment recommendation from DeinAnlageberater.ch?

There are two possibilities:

  • If you recommend one of your friends to us you receive an investment recommendation free of charge.
  • If you watch one of the advertisement videos you receive a credit. For this purpose we use a standardised method and take no influence whatsoever on the content of the advertisement video. In return our partner has no influence on our conduct of business. We receive money for the advertisements which has been watched by you and in return you can obtain a free investment recommendation.

Questions on the company DeinAnlageberater.ch

Who is behind the company?

The leadership team of DeinAnlageberater.ch is comprised of two people with extensive experience in the banking and insurance industry:

Simone Rebholz holds a degree in business administration (Diplom Betriebswirting DH). She gained experience in the banking industry running the area of capital markets for a cooperative bank and senior management functions in the mortgage business at a private bank. Simone has one son.

Dr. Claus Huber, CEFA, CFA, FRM, has more than 20 years of experience in the financial industry which he gained working in Germany, the UK and Switzerland. His main area of expertise is risk management with a particular interest in the quantitative modelling of financial markets. Claus has two daughters and one son.

Questions regarding security

How can I delete my account at DeinAnlageberater.ch?

You can delete your account in the password-protected area. After logging in, click on "Your account" and scroll to the bottom. Key in your password in the text field and press send. We will send you an email asking you to confirm the deletion request. If you confirm, your account is deleted.

How secure are my data?

All the data is encrypted according to prevailing industry standards. The servers used by DeinAnlageberater.ch are based in Germany. In any case we are not in the possession of sensitive data like access information for your bank.

Is it possible for one of the components to file for bankruptcy?

The legal framework in which the investment components suggested by us operate creates a very safe environment. As far as it is humanly possible to judge such an investment component cannot file for bankruptcy. The assets which make up the component can change in value. As a consequence the price of the component will fluctuate on a continuous basis.

What happens if DeinAnlageberater.ch ceases to operate its business?

Such an event would have no effect on the value of your components. You continue to have uninterrupted access to your components at your bank. You simply wouldn’t receive any investment recommendations from us anymore.

How secure is the payment system to purchase the points which can be redeemed for advice?

The payment systems correspond to the prevailing internet standards.