However, many of us put if off because it's all a bit complicated and we may not have the information and confidence about how to actually do it. Do you need a broker? Where do you find one? How do you know which one to choose? How much will it cost? How much money do you need to get started? Questions like these only add to the array of decisions which must be made when making an investment plan.
A new initiative from Smartshares Limited a wholly owned subsidiary of New Zealand Exchange Limited (NZX), has removed some of this confusion. As of this week, current and new investors are able to buy units in Smartshares Limited Funds - there are four and they track various share market indices - straight from Smartshares Limited which removes the need to involve a third party.
Brokers can and will still buy units for investors who prefer to operate that way, but the new direct cash subscription process means investors can buy units directly from Smartshares Limited.
Smartshares Limited's new investment statement contains the application form for each of the four funds – MIDZ, MOZY, FONZ and TENZ – meaning all investors need to do is fill in the form, write out a cheque and head to the post box.
Smartshares are an easy way to get a low cost, tax efficient, diversified investment in the New Zealand and Australian share markets. They are a smart and seamless way to accumulate funds for an investment goal – such as children's or grandchildren's education, a retirement nest egg or simply putting some money aside for that rainy day.
