Do you want to set up a share portfolio but are unsure how?

 

Is the whole process just too daunting?

Good news, Investment Tracker will make it easy to start and maintain your portfolio. You can do it all yourself and in turn get access to the best performing asset class, averaging 10% annually.

“A year from now you would of wished you started today”

Set up a portfolio the right way, the first time.

Save yourself the mistakes a seasoned investor has already learned from.

Set, Track and Automate with Investment Tracker.

“Anything that is measured and watched, improves.” ‘Bob Parsons’

Let’s go through the steps then!

 

SET UP A TRADING ACCOUNT

Your bank is the easiest option here. Westpac, Comsec or NAB trade. The brokerage will be around $20 a trade. I use Open Markets which is half that amount per trade. Fill in the paperwork and open your account.

PLAN & OBJECTIVES

Everyone’s plan will be different and should vary given your age. Write down your plan, what are your objectives? What is your time frame? What is your risk tolerance? What can I afford to deposit each week or month? When will I rebalance?

INVESTMENT TRACKERS GUIDE TO STARTING AN INVESTMENT PORTFOLIO

 

ASSET ALLOCATION

Asset allocation should align with your risk tolerance and you should DIVERSIFY to reduce your risk profile. When developing your portfolio, you should select a combination of equities, bonds and other investment types offering the best chance for success. This top-down asset allocation decision is among the most important factors in determining whether investors meet their objectives. Generally, if you are younger you want to take on higher risk. (higher weights to equities) If you’re older you will want more fixed interest, cash or bonds. An example of a high growth portfolio is pre-filled in Investment Tracker and is the format I use. It will give you a good insight into how to set this up. A general rule for equities vs bonds allocations will be 110 minus your age. The answer will give you your allocated percentage of equities and the remainder to fixed interest or bonds. (e.g. 110 – 36 years of age = 74% allocation to equities).

INVESTMENT TRACKERS GUIDE TO STARTING AN INVESTMENT PORTFOLIO

 

MINIMISE COST

Investors can’t control markets but they can control cost. Keep fees to a minimum. (brokerage, and management fees) High fees over a long period can drastically reduce your portfolio value due to the power of compound interest.

MAINTAIN PERSPECTIVE AND EMOTIONS

Stick to your plan! Don’t make decisions on market volatility. Rebalance once or twice a year. Automate it! If the market falls, look at it as if the stores are having a sale.

BUYING SHARES

Investment Tracker as well as the worlds best recommend ETF’s! Warren Buffet at the most recent annual shareholders meeting has just confirmed this again.

On staying simple: “Index funds are the best form of equity investing. If you consistently stick with them over decades, they will do wonders. [The only reason] we have not invested our cash holding in ETFs [is] because we would rather buy entire businesses.”

Get access to Investment Trackers choice of ETF’s already inserted and weighted. Advantages of ETF’s include:

Low cost

Diversification

Tax efficiency

Liquidity

Transparency

They are great for Australian investors to get access to certain sectors. For example, the tech companies in the US can be accessed by NDQ ( https://www.betashares.com.au/fund/nasdaq-100-etf/ )

Choosing your ETF’s can be made easier with this great tool. (Below link) You can compare funds against one another to help you choose the ETF’s that appeal to you the most.

https://tool.vanguardinvestments.com.au/mstar/au/fundcompare.htm?site_code=ret##target=fct

It’s getting easier and easier. Vanguard now gives you instant diversification with one ETF. You could buy one ETF and just accumulate. How easy is that? All for only 0.27% management fee with the option of four funds ranging from conservative to high growth. See below its high growth and diversified spread.

INVESTMENT TRACKERS GUIDE TO STARTING AN INVESTMENT PORTFOLIO

 

NOW BUY / TRACK / REBALANCE

Go to your trading platform and submit your trades using the weight allocations you have set yourself.

 

INVESTMENT TRACKER RUNS YOUR PORTFOLIO FOR YOU:

Final tips (Warren Buffet, aka, the best investor of all time)

“Our favorite holding period is forever”

“Try to be fearful when others are greedy and greedy when others are fearful.”

“Both large and small investors should stick to low-cost index funds.”

“The investor of today does not profit from yesterdays growth.”

“Anything can happen anytime in the markets…. Market forecasters will fill your ear but will never fill your wallet.”

INVESTMENT TRACKERS GUIDE TO STARTING AN INVESTMENT PORTFOLIO

 

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References:

For further info on setting up your trading account check out:

https://www.marketindex.com.au/how-to-buy-shares

For further info on Asset allocation check out:

https://www.commbank.com.au/guidance/investing/investing-your-money–what-are-the-options–201605.html

https://www.vanguardinvestments.com.au/retail/ret/about-us/investment-principles.jsp##investment-goals

For further info on ETF’s check out:

https://www.vanguardinvestments.com.au/retail/au/jsp/investor-resources/education/intro-to-etf.jsp#/Intro

https://www.marketindex.com.au/asx-etfs

 

ETF providers:

https://www.vanguardinvestments.com.au/retail/ret/investments/product.html#/productType=etf

https://www.betashares.com.au/fund-list/fund-overview/

https://www.vaneck.com.au/Home.aspx

https://www.blackrock.com/institutions/en-au

 

THIS IS NOT FINANCIAL ADVICE. FOLLOW THIS INFORMATION AT YOUR OWN RISK. IF YOU ARE UNSURE, WE RECOMMEND YOU SEEK OUT A PROFESSIONAL FINANCIAL ADVISOR.