Starting out small

[stenk]

Hi guys,

I would like to invest in Shares. Should I go through a managed fund or do this myself?

I'm not new to trading I have some experience in FOREX but not shares. I ultimately would like to do this myself but thought drip feeding a managed dividend fund just to get me started. At this stage I can only do $100 a week payments which at this I am quite comfortable with.

I was thinking smartshares.co.nz/ smartdividend fund.

Please guys let me know what you think. Am I going about this the right way?

Many thanks,

Sten

[dingoNZ]

Hi guys,

I would like to invest in Shares. Should I go through a managed fund or do this myself?

I'm not new to trading I have some experience in FOREX but not shares. I ultimately would like to do this myself but thought drip feeding a managed dividend fund just to get me started. At this stage I can only do $100 a week payments which at this I am quite comfortable with.

I was thinking smartshares.co.nz/ smartdividend fund.

Please guys let me know what you think. Am I going about this the right way?

Many thanks,

Sten

Brokerage fee's will kill your investment, say you were to invest $1000, the minimum fee is $30, you would simply need a 6% rise to be able to justify the buy and sale of the holding.

What I would do to get exposure to equities until you have enough to justifiably buy shares without having the brokerage erode saving is use Rabo direct. Rabo have a lot of asset managers/managed fund on there and you don't pay a stupidly high minimum fee for entry (often have deals for free entry). This way you also get a diversified investment across the asset class you pick (NZX, ASX, US etc).

Alternatively you could invest in the likes of Milford, Mint etc etc however they usually have a 'minimum investment' what Rabo does not.

Worth a read imo, https://www.rabodirect.co.nz/cash-funds/default.aspx

Just a thought~

[Harvey Specter]

Brokerage fee's will kill your investment, say you were to invest $1000, the minimum fee is $30, you would simply need a 6% rise to be able to justify the buy and sale of the holding.

I think with Smartshares, even though listed, you can do monthly investment and face no entry costs. To sell you would still face the $30 minimum brokerage which wouldn't be to large a % after 1 year (52x $100 = $5k). Alternatively, open one of Heartland banks new high interest bank accounts to save money until you have enough to invest.

Disc: Happy Heartland investor

Major question - when do you intend to use the funds you have saved (ie. car/house/travel purchase in next 1/2/3 years or retirement in 20+ years)

[stenk]

Disc: Happy Heartland investor

Major question - when do you intend to use the funds you have saved (ie. car/house/travel purchase in next 1/2/3 years or retirement in 20+ years)

Not for at least 10 years and hopefully longer. I have Kiwi-saver 8% (from when it began) which is my retirement savings and doing quite well, but would like to have another portfolio that I have more control over. $100 a week is not going to hurt me at all so I thought I might as well drip feed an investment that offers more then a term deposit "high interest savings account"

Thanks for your reply!

[stenk]

Brokerage fee's will kill your investment, say you were to invest $1000, the minimum fee is $30, you would simply need a 6% rise to be able to justify the buy and sale of the holding.

What I would do to get exposure to equities until you have enough to justifiably buy shares without having the brokerage erode saving is use Rabo direct. Rabo have a lot of asset managers/managed fund on there and you don't pay a stupidly high minimum fee for entry (often have deals for free entry). This way you also get a diversified investment across the asset class you pick (NZX, ASX, US etc).

Alternatively you could invest in the likes of Milford, Mint etc etc however they usually have a 'minimum investment' what Rabo does not.

Worth a read imo, https://www.rabodirect.co.nz/cash-funds/default.aspx

Just a thought~

Thanks very much dingoNZ! Worth a read for sure.

[Harvey Specter]

Not for at least 10 years and hopefully longer. I have Kiwi-saver 8% (from when it began) which is my retirement savings and doing quite well, but would like to have another portfolio that I have more control over. $100 a week is not going to hurt me at all so I thought I might as well drip feed an investment that offers more then a term deposit "high interest savings account"

Why 8% (unless your employer is matching) just contribute the minimum as this is locked away. Divert the rest into a portfolio you have control over, even if you just invest it in the non kiwisaver version of the kiwisaver fund you are in (or more likely, add it to the $100 pw you are planning to invest).

[stenk]

Why 8% (unless your employer is matching) just contribute the minimum as this is locked away. Divert the rest into a portfolio you have control over, even if you just invest it in the non kiwisaver version of the kiwisaver fund you are in (or more likely, add it to the $100 pw you are planning to invest).

Not missing the 8% but might change that now to divert into a new portfolio. It is nice to see my KS balance though! Again thanks for your comments Harvey Specter.

[percy]

Controlling your own dynasty and having financial independence is a fantastic position to aim for.
Start now.
Spend five months saving $2,000.In that 5 months research the sharemarket, and look for a share you want to own for the next ten years,or to hold for ever.Buy it,
Then, while saving up you next $2,000 spend more time researching,looking for the next share you want to buy.
Keep repeating the process.

[Snow Leopard]

Controlling your own dynasty and having financial independence is a fantastic position to aim for.
Start now.
Spend five months saving $2,000.In that 5 months research the sharemarket, and look for a share you want to own for the next ten years,or to hold for ever.Buy it,
Then, while saving up you next $2,000 spend more time researching,looking for the next share you want to buy.
Keep repeating the process.

When I started (with nothing in the bank) my initial plan was that each time I had $3000 (I deemed 1% brokerage the maximum I was willing to pay) I would buy a NZX share with good fundamentals until I had 5 different shares:
One went reasonably ballistic, one crashed and I lost 50% and the other three went up some.

I then upped by minimum buy size, diversified more and started buying on the ASX.

I have always worked to a plan, which I regularly review and update and many years later I can say I am "well positioned" for the future.

Best Wishes
Paper Tiger

[axe]

Controlling your own dynasty and having financial independence is a fantastic position to aim for.
Start now.
Spend five months saving $2,000.In that 5 months research the sharemarket, and look for a share you want to own for the next ten years,or to hold for ever.Buy it,
Then, while saving up you next $2,000 spend more time researching,looking for the next share you want to buy.
Keep repeating the process.

This has been the strategy I have employed over the last two years. It has worked ok for me. I had a targetted return in mind and have achieved this. Bear in mind I have been investing (buy and hold) and not trading. I have only sold twice over the two years.