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Discussion in 'General Investing Discussion' started by Rob M, 20th Aug, 2008.

  1. Rob M

    Rob M New Member

    Joined:
    19th Jul, 2008
    Posts:
    1
    Location:
    VIC
    Hi all,

    Just starting out on the investment path and have found some great insight and debate on this forum. Keep up the good work.

    One quick question: has anyone had any dealings with Commsec's Share Packs, if so, what are your thoughts/feelings? How has it gone?

    I thought this could be a good way to enter into a small share portfolio whilst learning, watching how it all goes. I have never had shares B4 and have just started an online course thru the ASX. I don't want to become a huge holder of stock, but want to have some diversification in my investments (I am more of a fan of IP's)

    Any feedback would be appreciated.
    Cheers
    RM:)
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    Hi Rob and welcome to InvestEd.

    I think you need to decide what type of investor you are and what you plan on doing with the investment.

    If you are a hands-on investor and like to watch your investments regularly and make adjustments as required, then direct share ownership is a good way to go.

    However, if you aren't prepared to do the ongoing research into which stocks you should keep, which you should sell, and which you should buy more of ... then a managed fund or listed investment company is a good alternative - especially if you have smaller amounts of money to invest or want to invest regularly (perhaps even monthly). This then gives you exposure to a range of shares, chosen and monitored by a team of experts who do this for a living. The diversification and management should hopefully shield you from the big mistakes or unexpected problems with individual shares.

    If you don't beleive that managed funds can consistently outperform the market, and don't like the fees they charge, then consider a low cost index-tracking Exchange Traded Fund like STW - this gives you exposure to the entire ASX200 index, you own a little bit of everything, and you invest in it just like you would any other share - it is traded on the stock exchange.

    None of these strategies is necessarily any better or worse, it largely comes down to how you like to invest and manage your investments, and how long you plan on keeping the investment for.
     
  3. crc_error

    crc_error The Rule of 72

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    Location:
    Melbourne, VIC
  4. samaka

    samaka Well-Known Member

    Joined:
    30th Sep, 2007
    Posts:
    308
    Location:
    Sydney
    If you want to make a single purchase and get exposure to a wide range of stocks, then STW is the way to go. More information at the site below:

    SSgA: SPDR S&P/ASX 200 Fund