Living in interesting times
30/09 - Category: Planning Ahead
Planning is bringing the future into the present so that you can do something about it now - Alan Lakein
There is a curse, reputedly based on an ancient Chinese proverb, which proposes to the recipient, ‘may you live in interesting times’. At times, the credit crisis has certainly seemed to be the curse in action, particularly for those thinking about investing in the share market. Some investors have jumped at the opportunity to pick up a perceived bargain, while others have been paralysed with fears of doing the wrong thing! But for most of us, the current uncertainty has left us wondering what the right course of action is.
Whilst I was tempted to take advantage of the higher returns that investing in shares could offer, without knowing much about individual stocks I wasn’t really sure where to start. I’m also aware that seeking higher returns often means higher risk. So like so many of us, instead of researching the hard questions, I did nothing!
Aware of this conundrum, a friend pointed me in the direction of a new product which allows me to invest in the sharemarket without the hassle, via internet banking. This product, called an Online Investment Account, seemed to be a great opportunity for me to invest in the Australian share market, whilst being surprisingly simple to use - much like a normal online bank account.
However, instead of earning interest, my money is invested across the ASX top 200 companies, allowing me to earn share market returns. What’s especially good for a novice like me is that I don’t need to worry about deciding which shares to pick and choose, as the account spreads my investment across the ASX200 automatically.
Why this particularly suits a cautious investor like me, is that by diversifying my portfolio, it spreads my risk. And whilst the returns may be volatile in the short-term, over the next 5-7 years, the gains are likely to be greater than simply parking my cash in a basic bank account.
I love it, because I can access it in the same way I can all my other banking accounts, online 24/7. Suddenly, the daily finance reports have some relevance to me. When I hear the Aussie market has moved up a few points I know I have a vested interest!
This material does not take into account your personal needs and financial circumstances. You should read and understand the ANZ Online Investment Account Product Disclosure Statement (PDS) to ensure that the account is suitable for you. To view the ANZ Online Investment Account PDS, please visit www.anz.com. The performance of the online investment account is not guaranteed and can be volatile, particularly in the short term. Once the money that you have deposited is invested, it is no longer held on deposit by ANZ or subject to any depositor protection under the Banking Act 1959. ANZ does no guarantee your investment in the Online Investment Account or the performance of the product or its investments. You investment in the product is subject to a range of investment risks. They include possible delays in the repayement of withdrawawls from your investment and loss of income and principal invested.
