Quote Originally Posted by blackcap View Post
I tend to disagree with you on this one Peat. Technology has allowed the minimum parcel sizes to be redundant. I too used to know the term "odd lot".
Unfortunately it is the NZX that is not up to the party here trying to run a modern system on old hard/software. The NZX have made Sharesies a market participant. More fool them if they did not see the enthusiasm that the ordinary folk had for investing in shares and being able to make their own balanced portfolios with minimal $.
I am in the process of making my own index fund, which I will manage and invest in on my own behalf. Now with Sharesies it is possible to do something like that even with a portfolio value of even say $25k. In the past it would have been prohibitive.
How are you accomplishing this in a NZ market presence by sector / industry? The NZ50 alone is too risky with so many in that list that will be destined for bankruptcy. Will you be tracking every stock in that sector and do all the rebalancing? How about the high commissions for making trades ; which will reflect in your annual cost? If lowering risk through diversification is your strategy, i'm afraid you won't do it in the NZ market.