Stock Market

How to buy stocks in the Australian stock market

March 31, 2020 by Reporter Leave a Comment

The current stock market is in turmoil with a lot of volatility in share prices here in Australia, however there is a growing number of people who think getting in now could be profitable for them in the long term. So how do you get into the stock market ? How do you buy shares to take advantage of the current stock market tumble.

There are two different ways that you can get into the stock market and buy and sell shares

1. Sign up with bank share trading account that allows you to buy and sells shares

2. Sign up with a stock broker that specifically allows you to buy and sell shares.

There are other ways to buy shares like buying a bunch of blue-chip stocks or buying an ETF (which is also buying a bunch of shares) – but we will come to that later.

Banks as a stock trading buy and sell platform

Most big banks allow you to sign up with them for a stock trading account so that you can buy and sell shares. If you are already signed up with one of them, just enquire with them. Here is a list of banks that facilitate stock trading

1. Commonwealth bank ( Comsec – their share trading platform)

2. National Australia Bank ( Nabtrade – their share trading platform)

Below we give you further details about brokerage fees these bank charge and also prices for some popular dedicated share trading platforms.

How much money do I need to start trading the stock market?

Technically, there’s no minimum amount of money needed to start investing in stocks. But you probably need at least $500 — $2,000 to really get started right.

How do I make money in the stock market?

There are many ways to make money in the stock market, however the most simple method to understand this is when you buy a share today that cost you $500 , but its worth tomorrow is $600 and so you sold it – then you just made $100

To break that into much more realistic detail and give you an example

Eg. Say you got $500 to invest

Westpac bank shares are $15 each today, so you bought 32 Westpac shares

32 Westpac shares X $15= $480 + (add $10 bank fees for buying)

Total cost is $490 to buy the shares

Three days later (or six months later), there is a bit of recovery and Westpac share price rises and is $20 each share.

You had bought $32 shares earlier; you sell it today for $20 (that’s a $5 increase in the share price)

32 shares x $20 =$640 – $10 bank fees

You have $630 from your sell

Sell price $630 – Bought price $490 = Your profit $140

The bank does not charge you anything for holding the shares, but charge you for each buy and sell, which bring us to our next point -broker fees.

Now say if that investment was $5000 instead of $500 your profit could be $740 in one trade

How much does it cost me to buy and sell shares?

Every broker and every bank have different set of prices for buying and selling shares. It really comes down to ease of use, broker fees and availability of stocks to trade on each platform. Here is short comparison of some top bank and broker fees

Share trading fees – Banks

Commonwealth Bank – Comsec Fees:

For shares under $1000 in value – $10 each transaction

For trades between $1,000 and $10,000 – $19.95 each transaction

This is called the brokerage fee

Website https://www.commsec.com.au/support/rates-and-fees.html

National Australia Bank – Nabtrade Fees:

Up to and including $5,000 – $14.95 each transaction

From trades between $5,000.01 – $20,000 – $19.95 each transaction

Website https://www.nabtrade.com.au/investor/pricing

Share trading fees – Brokers

Two popular brokers apart from Banks are Self wealth and Ig markets. They both allow trading in Australian stocks as well as international stocks and CFD.

Self-wealth trading fees:

Brokerage fee for every trade, regardless of size – flat $9.50 (Only Australian Shares)

Website https://www.selfwealth.com.au/online-trading/

IG markets Trading fees:

Trading Australian shares – $8 per trade or 0.1% whichever is higher

For US markets – US$10, or 2 cents per share

Website:https://www.ig.com/au/charges

With IG markets you can do Australian and US stock market trading and also trade in CFD’s for which you have to sign up separately with them.

Other share trading platforms worth mentioning are ANZ share trading, Bell Direct and CMC markets.

Most banks and stock trading brokers provide additional data and tools for company and stock analysis, creating watchlists, setting price alerts, creating specific set price buys and more. Features offered can differ from platform to platform.

With Comsec and Self wealth – All trades are CHESS sponsored

There are two ways for shares to be held:

CHESS Sponsored Shares – Shares that are registered with a stock broker (CommSec or another broker). CHESS Sponsored Shares are allocated a Holder Identification Number (HIN) by the broker.

Issuer Sponsored Shares – Shares that are managed by the issuer of those shares via the issuer’s Share Registry. Issuer Sponsored Shares can be traded through any broker, providing conditions set out by that broker are met. Issuer Sponsored Shares are allocated a Security Reference Number (SRN).

In reality it does not make much difference to your trading profit, if it is chess sponsored or issuer sponsored.

Risky Stock Trading with penny stocks

There is a difference between big companies and small companies (smallcaps) and with small companies come more risk in comparison with blue chip stocks like BHP, Westpac.

Some traders can get lucky and pick a small company stock that can become a winner.

Take for example FMG – Fortescue Metals Group (iron ore miner)

This stock was once trading for between $2 and $3 – Today the price is $10

Say you dropped $5000 when it was $2, so you got 2500 shares of FMG

You sold it when it reached $10 today x 2500 shares=$25,000

You just made $25,000 from $5,000, however this is very rare- though people have gotten lucky with their stock picks and made money.

FMG was once a small cap with lot of debt and considered risky, but now they have paid up their debts and are considered much safer than they were before.

ETF’s

Another popular method of buying into shares right now is called ETF’s . With buying an ETF you have options like buying into a group of shares where you can also invest by putting money in a regular basis as low as $50 a month/week. Some providers/brokers also allow you to invest in ASX 50 or a lumpsum into a group of blue chip stocks.

ETF’s are available through bank trading platforms

Learning how to trade the stock markets is essential, before you decide to have a punt on your hard-earned money.

The stock market can make you money, but it can also take your money and put you at a loss. Doing dummy trading, joining stock trading groups and researching companies for three to six months is a good idea before jumping right in. Good luck!

Article written by Jeff – I blog about stock trading – Check my stock market blog over here

Passive Perfection – The 5 Passive Income Streams With The Best Returns

February 6, 2020 by Reporter Leave a Comment

Photo by Alexander Mils from Pexels

Working smarter, not harder, is the mantra of the day. People are no longer willing to spend most of their lives at work. We want our jobs to enrich our lives and fund our personal pursuits. Now more than ever, we want to spend our time in a fulfilling work environment with minimal stress. Below are some ways that you can invest in passive income sources so that even while you are sleeping, you can be making money.

Real estate

Have you considered investing in property but been put off by the idea of all the hassles involved in renting out a house? The good news is that you can generate passive income from real estate by investing in commercial property management. In this type of arrangement, you can reap the rewards without too much initial effort.

Many people decide that they want to be a silent partner in this type of venture because all it requires is that you invest some initial capital. If, however, you want to take a more active role, you can choose to take on the property management yourself. Either way, by owning property and leasing it out, you can earn a significant amount of extra income.

The stock market

Another way to earn passive income with an initial startup cost is through dividend-paying stocks, EFTs, and other investments such as lending clubs. These types of investments can help you earn money around the clock with no work on your end. It does take time to build up a strong and legitimate portfolio, but with the proper guidance from a reputable investment firm, you can be sure that your dividend investments will pay off.

Affiliate marketing

If you are a heavy internet user (like most of us), then there are several ways you can leverage your online presence to create passive income for yourself. Affiliate marketing is an income idea that requires you to have one or more platforms on which you can promote products for other companies. This works extremely well on social media platforms within your local community where you can see what people are after and provide affiliate links that help them while earning you a commission. When someone uses the promotion link on your site or post to buy from another company, you get paid.

Website ads

In conjunction with affiliate marketing, you can also leverage your internet space by displaying ads on your website. Again, this does require you to set up a site, but the more visibility you can create, the more money goes straight into your pocket. This can be so profitable that it’s often called owning online property. Advertisers pay to display ads on your site, and you get paid simply for attracting traffic. How easy is that?

CPC ads

The final way to leverage your online property is to go with cost per clicks (CPC) ads. Unlike affiliate marketing and display ads, you get paid every time someone views or clicks on an ad versus only when someone buys something after clicking on the ad. You can make money simply by driving traffic to your website and letting the adverts sell themselves.

Whether you choose one or all of these methods to generate passive income, you can earn a significant amount of money by investing in ideas that will help you down the road. You may not see an immediate influx of funds into your bank account, but hold out for the long haul, and you’ll eventually be able to live without working.

How to Get the Most Out Your Business Trip to Australia

June 26, 2019 by Reporter Leave a Comment

When making a business trip to Australia, you may wonder how you can make the best out of your journey. If you take care of the following concerns, it may be easier for you to make your business trip to Australia a thrilling event.

Organise Your Schedule

While travelling to Australia, there is a need to have an order to prevent unnecessary anxiety. Have a clear hierarchy of events so that nothing may overwhelm you as you take part in the trip. This will ensure that you get the best out of your business trip to Australia.

Consider Renting a Car

While on your trip you will need to have transport facilities. It is necessary that you get the most convenient means while remaining within the scope of your mission. Hiring a car will be an excellent way to solve your transport of issues. Remember that people in Australia drive on the left side of the road. Also, in Australia, there are many private car transport companies. Don’t forget to have a plan for any accidents on the road as well!

Online Services

Business trips, in most cases, do not give you too much time at your disposal. Instead of taking everything personal, try making an online booking to save on time and costs. Doing this will ensure you do things quickly and avoid moving around. You may get lost and end up in the headlines. Take advantage of technology.

Use Corporate Apartments

Hotel rooms have been used for many years to solve accommodation issues. Though while in your business trip to Australia, you may consider a better provider of this service. The corporate residence will give an assurance of personalised services which can suit your business trip. It will also be quite adventures having an out of hotel experience.

Money

Monetary issues are quite fundamental in most aspects of human life. In your trip, you must also be in a position to understand this vital determinant. What is the worth of your currency compared to that of Australia? You may need to have your cash exchanged to the local currency to make your work easier and trip enjoyable. It is also wise to have enough money for your trip.

Kill Two Birds with One Stone

You can try solving most of your problems using one service provider. Most companies nowadays have linked services. The corporate apartments may also have car rental services etc. Try answering all your questions using one service provider to help boost your bargaining power and ensure quick and timely transactions.

Seek Necessary Information

While on your trip to Australia, try knowing more about the country, its culture, the dos, the don’ts, and the untouchables. It will help you understand how to behave and respond to specific issues. It will also prepare you to know what to expect outside the scope of your trip.

Have Plans to Explore the Locality

Australia, like many other countries, have a lot of things peculiar about them. The cultural practices, the animals, and the natural aesthetics will be of great benefit to your adventurous impel. Get out of the tight and official schedule and have some fun. It is necessary to give yourself a little holiday on the trip to relax and create some memories.

The above golden tips will add more fun to your trip to Australia, and you will have a memory preserved. You can mean business and not spoil anything with some fun. Enjoy Your Trip.

Failing to predict 2015’s financial stories

April 20, 2015 by Reporter Leave a Comment

By Patrick Foot, financial markets writer at IG

For a year still in its infancy, 2015 has seen a lot of action across global financial markets thus far.

So much so, that many of the blockbuster stories at the end of last year – some of them still ongoing – have to an extent been overshadowed. The Russian rouble has continued to toil – Standard & Poor’s recently cut Russian debt to ‘junk’ status. Oil shows no sign of returning to strength anytime soon.

Perhaps the most notable feature of 2015 so far has been the unpredictable nature of market volatility. The status quo that many were predicting for the next 12 months is already being pulled seriously into question.

In the USA, another strong non-farm payrolls figure kicked off the year much as many were expecting. 252,000 jobs were added in December, against an anticipated 240,000. Unemployment fell faster than economists were estimating and with the previous figure being rounded up considerably, the US dollar went on the rise again. In the US, at least, the world had a leading light that wouldn’t fail.

Then came a durable goods figure that was stunningly off the pace, as orders declined 3.4% when the markets were expecting a narrow increase. Previous figures were also revised down amidst a substantial refresh of America’s economic outlook. As Chris Beauchamp, analyst at forex trading platform IG, noted: ‘The World Bank’s warning from just two weeks ago looks very prescient now, as a hitherto strong performance from the US begins to weaken. The world can ill afford Uncle Sam catching a cold.’

The bad news was only compounded by an earnings season that was seeing major companies miss expectations with alarming regularity. Microsoft and Caterpillar announced earnings either side of the durable goods report, with both companies missing the mark on several key figures.

Apple’s amazing iPhone sales aside, US earnings pointed to several major weaknesses in the US economy. All told, the US’s biggest three banks missed revenue expectations by a collective $3.19 billion.

But the biggest shock to the markets came not from the US but from Switzerland. The Swiss currency crisis caught the markets unawares, and sent shockwaves through equities, currencies and commodities. Its effect was such that it is still extremely difficult to pick apart exactly how a suddenly-valuable Swiss franc will play out across global economies.

The Swiss franc had been pegged to €0.83 since September 2011, and the Swiss National Bank had shown little regard towards scrapping the peg. Despite many noting since how damaging artificially holding a currency pair’s value can be – by 2014, Swiss currency holdings were equivalent to around 75% of GDP, and were on the rise – a drastic move from a famously conservative central bank was predicted by no one. As many have pointed out, the problems associated with pegging currencies may not have even applied to the Swiss franc against the euro.

However, the problems of suddenly unpegging currencies are now well known, as traders found out on January 15. The Swiss franc suddenly returned to its former high valuation, instigating one of the biggest moves in a major currency ever seen. Swiss business, banks around the world, and financial traders all lost millions.

If anything, the first few weeks of 2015 demonstrated that predicting the next 12 months of financial movements is a task beyond human comprehension. Whatever the rest of the year brings, though, it looks set to be a rocky ride.

This information has been prepared by IG Markets Limited. The material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Trading binary options for profit

June 26, 2014 by Reporter Leave a Comment

Trading and investing can be a tricky field if you don’t know what you are doing . But if you get it right it can also reap nice monetary gains. Binary options are a growing popular trading option that is growing in popularity in comparison to many other popular trading methods like share investing , Forex trading and other alternate investment options like hedge fund investment.

Trading in Binary options involves getting in and out of options and locking in your profits if done successfully.

So What are binary options ?

Binary options are a simple way to trade price fluctuations in multiple global markets and Binary options are different from traditional options. These options have different payouts, fees and risks, and an entirely different liquidity structure and investment process

The most common binary option is a "high-low" option and is also called a fixed-return option, because the option has an expiry date/time and also what is called a strike price.

Binary option

From Wikipedia, the free encyclopedia

The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes.

When you are looking for a platform for trading binary options, you will need to consider if the platform supports which available markets, what is the minimum and maximum trading limits plus the minimum deposit amounts you can make into each respective site.

The first and most important aspect of any Binary Options trading site that you should be looking for is trust.th provider should provide quality broking and it should have a solid and reliable track record in regards to paying out when you wish to cash out any profits.

Ensure that your Binary Options trading provider that gives you a very wide range of different and varied types of Options to trade. Choosing the right broker can save you a lot of trouble and save you more money in the long run with the right support provided by your broker.

How do brokers make money from binary options

Binary options outside the U.S. are different and typically have a fixed payout and risk. These are offered by individual binary trading online brokers and not on an exchange. These online trading brokers make their money from the percentage discrepancy between what they pay out on winning trades and what they collect from losing trades keeping the costs low on the end trader.

Binary options and brokers are becoming popular and can be found in the following countries · US Binary Options Brokers \ UK Binary Options Brokers \ Australian Binary Options Brokers \ Canadian Binary Options Brokers \ Indian Binary Options Brokers.

To choose you best broker visit http://best-binary-option-brokers.com/

Advantages of Access Anywhere Investment Software

October 13, 2013 by Reporter Leave a Comment

When you are looking to build the most “successful investment portfolio” via a systematic approach, you will have many factors to consider, as well as actions to take.

You will need to determine your investment strategy, for example, considering whether you are a conservative or aggressive investor, while your asset allocation will also need to be figured out. Your asset baskets will then need to be filled with specific investments, with portfolio rebalancing also needing to be done periodically.

Clearly, it’s understandable that individuals managing such a portfolio – whether they are high net worth investors, stockbrokers, IFAs or fund managers, to name just some possibilities – would decide to make use of suitable investment management software incorporating a wide range of functionalities to make their lives easier.

Such functionalities could include everything from comprehensive reporting encompassing transaction, valuation, contribution and regulatory data to portfolio modelling and rebalancing consisting of strategic/dynamic modelling and blended modelling/asset allocation. But what is access anywhere investment management software, and why should wealth managers choose it?

Explaining ‘access anywhere’ investment software

In today’s world, the traditional ‘9 to 5’ is collapsing, with more and more individuals working from home and/or in all manner of remote environments. The top finance staff of major corporations, CFOs and MDs, CEOs involved in finance issues, IFAs, stockbrokers and high net worth investors alike are spending an ever-decreasing proportion of time chained to their desk in the same office, instead being constantly ‘on the go’.

This trend of an increasingly mobile, remote working corporate world has coincided with the rise of ‘cloud computing’, with more and more functionalities and technologies that might have once involved the installation of software on one local device now being delivered ‘as a service’ over the web.

The world of investment management software has not been immune to this trend, with the leading software solutions offering full interface functionality either via web services, or involving the importing of files from multiple locations.

Web based software of any kind allows its users to access it from any location in the world with an Internet connection, and from any device that is capable of the same, which is why a tablet friendly portal is another priority for many of those considering investment management software. This is why the terms ‘access anywhere software’ and ‘web based software’ are largely synonymous.

Why should you prefer access anywhere investment software?

Access anywhere investment software is used over the Internet with a web browser, with no CDs needing to be installed, or software downloaded. Nor is the client required to leave space on their own systems for upgrades, or even think about them – instead, the company behind the software can be entrusted with evolving it in line with a changing business landscape, meaning that the client always benefits from the most up-to-date version.

Users of access anywhere investment software don’t need to take the software with them in any form for their constant foreign business trips, as the data is centralised, being available over the Internet from any computer, at any time. Clients can access information about their investments and get to work on the management of their portfolio from anywhere, also not needing to worry about the theft, damage or loss of data.

Traditional software, after all, involves data being saved in all manner of locations, from USB drives and laptops to portable hard drives. Particularly as far as such a sensitive matter as one’s investment portfolio is concerned, it is a considerable reassurance to have that data securely stored on the most up-to-date, state of the art enterprise-class servers. It makes the latest backups and security patches and updates for one’s own devices just slightly less critical, which is invaluable, given how often they are also completely forgotten.

If you are looking to manage your investment portfolio, in a 21st century corporate environment, you will want to be able to quickly access the full range of investment management software functionalities, encompassing order management, real time performance measurement, client relationship management and more, in a truly fuss-free and efficient manner.

You are not likely to want to get bogged down with technical requirements. Instead, you’ll want to be able to leave such responsibilities to the directors, project managers, technology developers and business analysts who conceived the software and are therefore best-placed to incrementally modify it in line with the current business landscape and the common needs of clients.

The right access anywhere investment software gives you precisely this convenience and peace of mind, allowing for your focus to remain firmly on your investments.

Stock market Picks : Toxfree

March 9, 2013 by Reporter Leave a Comment

A 33 % jump in net profit definitely signifies a positive outlook for a company and tox free ( waste management and industrial solutions ) should be happy in the direction they are going.

Toxfree Solutions Ltd (Toxfree) is a integrated waste management and industrial service provider, who provides sustainable waste management solutions for all types of waste including commercial, household, industrial, construction and hazardous waste..

“Tox free” has reported a jump in profit of $10.5 million for the first half of the financial year and its shareholders are pleased with the results.

Website:www.toxfree.com.au

Toxfree share price: $3.450
(Updates every 20 minutes)
Click here for full details

Tox free is a WA owned company and it revenue has risen to 43 percent to 131.6 million with earnings before interest, tax ,depreciation and amortisation up 39 % to 28 million

They have over 30 facilities nationally and employing a team of over 800 people and service over 20,000 customers nationally

Tox free has also been lucky with expansion into the coal seam gas industry in Queensland as a result of its acquisition of Absolute Liquid Waste services earlier which is based in towoomba, which has also added to its rapid growth.

The company has performed very well this year and is in great shape to extend its winning run of earnings growth into the current financial year.

Links

31 December 2012
Toxfree Half Year Results – period ending 31 December 2012

12 December 2012
ASX Announcement Acquisition Absolute Waste – 10-12-2012

http://www.asx.com.au/smalltomidcaps/asx.pdf

More midcap stocks and penny stock picks can be found at australianpennystocks.com

Liability disclaimer : Advice received via the Australian business times web Site should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice tailored to your situation.

Top Australian stock broking websites and information links on the internet

Bell Direct (www.belldirect.com.au)

Directors’ Transactions
Directors’ Transactions tells you who’s buying, who’s selling and who owns what amongst Australia’s company directors.
» www.directorstransactions.com.au

CMC Markets Stockbroking (www.cmcmarketsstockbroking.com.au)

Educated Investor Bookshop
A specialist bookshop located in Melbourne offering same day postage Australia wide and a 10% discount for subscribers to The Intelligent Investor.
» www.educatedinvestor.com.au

Australian Shareholders’ Association
Established as a not-for-profit organisation in 1960 the Australian Shareholders’ Association protects and advances the interests of investors.
» www.asa.asn.au

Grant’s Interest Rate Observer
This fortnightly newsletter is US-centric, highbrow and bears little relevance to the Australian market, but we like his style.
» www.grantspub.com

Income Investor
This site offers information on both upcoming and historical ex-dividend dates, including dividend amounts and franking.
» www.incomeinvestor.com.au

E*Trade (www.etrade.com.au)

New2Shares.com.au
Confused by investing but want to learn more? New2Shares offers five education modules covering everything from telling you why you should invest to reading annual reports and choosing a broker.
» www.new2shares.com.au

Outstanding Investor Digest
It’s expensive and it’s infrequent but the interviews in this US publication are more eagerly anticipated than anything coming through The Intelligent Investor’s mailbox
» www.oid.com

Platinum Asset Management
Australian based fund manager Platinum provide some refreshing words of wisdom in their quarterly reports.
» www.platinum.com.au

The Australian Stock Exchange (ASX)
The ASX website includes market and company news, share prices, ASX education centre, ASX/Dymocks Book Shop, information on derivatives and a directory of stock brokers. For those who would love to attend the lunchtime lectures, a timetable is now available online.
» www.asx.com.au

D.J. Carmichael (www.djcarmichael.com.au)

The superinvestors of Graham and Doddsville
This is a highly recommended extract from a lecture given at Columbia University in 1984 by Warren Buffett.
» www.tilsonfunds.com/superinvestors.php3

Tilson Funds
It could almost be described as the value investor’s homepage (second only to The Intelligent Investor of course), this website has it all and is a fantastic starting point.
» www.tilsonfunds.com

Warren Buffett
The Intelligent Investor’s dedicated site to the one of the world’s most successful investors, Warren Buffett.
» www.warrenbuffett.com.au

Overseas Stockbroker Website links

Berkshire Hathaway
This site contains Warren Buffett letters to shareholders for every issue since 1977. Essential reading for all value investors.
» www.berkshirehathaway.com

Third Avenue Funds
Martin J. Whitman (Marty Whitman) is a legendary investor and author of a book titled Value Investing: A Balanced Approach. He’s also a regular to the pages of Outstanding Investor Digest (www.oid.com). Whitman founded Third Avenue Management in 1974 and its website contains many gems. Most are to be found in the ‘Shareholder Letters’ section.
» www.thirdavenuefunds.com

The Motley Fool

If you know what you’re after then this ‘all things finance related’ website probably has it. The regular email bulletins are informative, but with a UK slant.

» www.fool.co.uk

Australian Stockbroker Links

» ABN AMRO Morgans (www.abnamromorgans.com.au)

» Wilson HTM Investment Group (www.wilsonhtm.com.au)

» HSBC Stockbroking (www.broking.hsbc.com.au)
» Intersuisse (www.intersuisse.com.au)

» Andrew West (www.andrewwest.com.au)
» Austock (www.austock.com.au)
» Baker Young (www.bakeryoung.com.au)
» BBY (www.bby.com.au)
» Burrell Stockbroking (www.burrell.com.au)
» Commonwealth Securities Ltd (www.commsec.com.au)
» Delta Securities (www.deltasecurities.com.au)
» Direct Shares (www.directshares.com.au)
» Gillion Securities (www.gillon.com.au)
» Joseph Palmer & Sons (www.jpalmer.com.au)
» Maquarie DirecTrade (www.macquarie.com.au)
» Morrison Securities (www.morrisonsecurities.com)
» Netwealth (www.netwealth.com.au)
» Sanford Securities (www.sanford.com.au)
» Smith Barney Citigroup (www.smithbarney.com.au)
» Taylor Collison (www.taylorcollison.com.au)

Investing in mutual funds

August 17, 2012 by Reporter Leave a Comment

Mutual funds are an investment fund that pools the financial resources of a variety of investors and buys a diversified portfolio of stocks and bonds. At inception, the board of directors for the fund set the goals and strategies for the fund. Then, a fund manager is hired to ensure that their directives along with the fund manager’s expertise work in sync for the best returns possible for the fund. Investors have the ability to enter the fund for relatively low up-front investments and have the flexibility to add additional financial resources or sell shares as they desire.

Mutual Funds: What Are They?

The fund manager allows for investors to relax and let a highly qualified expert do the buying and selling as needed for the fund without having to worry about individual stock and bond purchases and sales.

The mutual fund manager is responsible for the buying and selling of bonds and other securities and reports to the board of directors of the fund. Mutual funds area available both as an “Actively Managed” and “Passively Managed” fund. A passively managed fun is one where the fund manager sets the investment criteria with direction from the board and then buys and sells investments to match the strategy. A passively managed mutual fund is the most reasonable type of fund for an investor to own as the costs associated are less than those of an actively managed fund.

In an actively managed mutual fund, the fund manager is much more intricately involved in the research of companies, markets, industries, and the economy to more fully manage the fund on a day-by-day, and hour-by-hour basis. Actively managed funds have highly educated and experienced fund managers that focus their energies on analysis and keep up-to-date with industry and economic news. While the annual expenses of an actively managed fund may be significantly higher than a passively managed fund, often times, greater returns are seen.

Advantages of Investing In Mutual Funds

1. Experienced fund manager trades stocks and bonds as market, industry and economy requires.

2. Diversified portfolio as many mutual funds contain hundreds of different stocks and bonds.

3. Investors don’t have to invest in individual securities which can be cost prohibitive for some investors.

4. Low up-front minimum investment requirements for mutual funds can be as low as $500.

5. Shares can be sold for cash.

Investors can sell all or part of their shares in mutual funds at the Net Asset Value (NAV) rate. This is the actual mutual fund price that is set at the end of each trading day and is the buy/sell price until the following NAV rate is set.

There are tens of thousands of mutual funds for investors to choose from; in fact, there are actually more mutual funds in the United States than there are individual stocks or securities. Well-balanced mutual funds tend to own a balance of bonds and stocks, often times with stocks slightly outweighing the bonds. Analysts agree that mutual funds are one of the best ways to invest money with minimal risk while enjoying moderate and good returns. For a truly balanced portfolio, experts agree that investments in mutual funds provide the right balance of risk and reward.

About Us: When you are searching for information about retail investments and funding choices, you will find that there are a few choices that can really help to improve your portfolio performance. When you have questions about your investments, you might consider turning to Trustnet, Hong Kong’s premier site for information about fund investment.

Guest Post : Visit their website at www.trustnet.hk for more information.

Gold– Past and future of Investing in gold for profit

August 15, 2012 by Sheldon Leave a Comment

Gold as an investment

Gold is the most popular form of investment of all precious metals. It is the preferred investment medium used as a hedge against political, economic or man-made currency crises which include declines in investment markets, inflation, escalating national debt, currency failure, social unrest and war. Like other markets, the gold market is subject to speculation especially because of futures derivatives and contracts.

Various historical factors and current events suggest that gold is more akin to a currency rather than a commodity and analysts says the bullion gold investment might be profitable in the short term due to the global economic outlook

Gold through the ages

Until recently, gold has traditionally been used as money, and has also been the relative standard for currency comparisons relative to countries or economic regions. Gold standards were implemented by many European countries in the latter half of the 19^th century. During the financial crises in the wake of World War I these were temporarily held in abeyance. The Bretton Woods system post World War II pegged gold to the United States $ at the rate of US$35 per troy ounce. This practice continued till 1971 when the United State suspended unilaterally direct convertibility of the $ to gold and transitioned to a flat currency system. The Swiss Franc was the last currency to be divorced from gold.

Current factors that impact gold prices

Like most other commodities, bullion gold investment price is determined by supply, demand and speculation. However with gold, unlike other commodities, savings and disposal rather than consumption have a significant role to play in driving the price of gold. Much of the gold mined since inception still exists in bullion or bulk produced jewellery form, and can potentially return to the market when the price is right. The current weak global outlook has also made people invest in gold as a safe bet which has been driving the price of gold

Considering the enormous quantity of gold above-ground in comparison with annual production, price is driven more by sentiment or demand instead of fluctuations in annual production or supply. According to World Gold Council figures, about 2,500 tonnes are mined annually, of which roughly 2,000 tonnes go into jewellery or industrial production/dentistry and only the remainder to exchange traded gold funds and retail investors.

Guest post Written by Ktkoh

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