Are you a young person wanting to dip your toes into investing?
Companies such as Betashares have launched low-cost offerings for people who want to invest their spare funds.
What is Betashares?
They provide individuals a low-cost and simple alternative to buy and sell stock on the Australian Securities Exchange (ASX), and start building an investment portfolio from a young age. They have expanded the scope of investment opportunities and offer the largest range of investment solutions for all investors, called Exchange Traded Funds (EFTs) (see below).
Betashares also has no brokerage or account fees.
What are Exchange Traded Funds?
‘An ETF is a managed fund that you can buy or sell on an exchange, like the Australian Securities Exchange (ASX).
When you invest in an ETF, you don’t own the underlying investments. You own units in the ETF and the ETF provider owns the shares or assets.
When you purchases an EFT, you only own the units of the EFT and the owner of the EFT has the shares or assets involved. They differ from shares in a company as the price of the EFT units stays around the Net Asset Value (NAV), whereas the price of a share changes based on demand. But they’re similar in how you buy and sell them, and you can do so through a stockbroker.
But what are the advantages of buying and selling EFTs (or Betashares)?
EFTs allow investors to invest in a range of asset classes or markets at a low cost, that may be difficult to access otherwise. They’re also easy to trade and can diversify your investment portfolio, making it the perfect investment for someone with little experience.
Where do I start?
To start, check out the Betashares website. You’ll find all the information you need to begin!
If you’d like individual advice on starting your investment portfolio, please get in touch with our Aintree Group Wealth team – we are always happy to help.
Disclaimer: This is general advice only. You should seek out proper professional financial advice if you’re unsure of any stage in the process.