It’s a common misconception that you need to have a certain amount of money to be able to invest. In fact, it’s quite the opposite if you are new to the investment game. It can be more beneficial to start out with investing smaller amounts of money until you build up your confidence in the market.
Step one:
Identify a great investment opportunity for your portfolio. Do some research into current market trends and create a short list of what you think will likely give a good return. Once you have narrowed down some suitable “managed funds” that you are interested in, go deeper! Locate their Product Disclosure Statements (PDS) and check their financial strength and progress.
Step two (possibly the most important):
Determine an amount you are prepared to lose in the market –should things turn pear shaped. Being comfortable with your investment budget and knowing there’s always the possibility that the managed funds you’re backing could take a wrong turn, or the market may crash, will likely dictate your longevity with investing. With this in mind, initially you might feel more comfortable sharing your investment budget across a wider portfolio of funds to lower the risk of a greater loss.
Step three:
When you are ready, you will need to find an investment platform that is right for you and create an account. As a beginner, it’s important to shop around and find a platform that will offer consolidated reporting, research and statistics on the market to help you on your investment journey.
Step four:
Start small. You may have some more money put a way for investing, but there is no need to rush things. Once you see some positive returns, increase your investment and watch those funds grow.
For more information on how to invest, or for personal investment advice, speak to one of our Financial Planners today.