While we sit in the middle of government mandated self-isolation I have had many people e-reach out and ask how do I buy shares? This question has come from friends and family, from all levels of income, from all occupations. And at its heart it is relatively simple to answer – the more important question is what should I buy!
To buy shares is as easy as opening an online trading account. Most of the banks offer an account that can be linked to your everyday banking account and there are many businesses online that operate solely in this space. Personally, when I’m researching for the best option I test a few comparison websites like Canstar or Finder. The things you are looking for are-
- Reputable dealer – check AFSL registration details and security protocols
- Low fees – this includes brokerage, account keeping, entry and exit fees
- Ease of Use – if you can view the platform using a free trial this is a good way to test functionality, usability, reporting etc.
- Investing options – can you only invest in Australia? What about international? CFDs? indices?
If you don’t trust yourself with assessing an online platform, then a traditional stockbroker is another option. They monitor your portfolio and can buy and sell shares at your instruction. Again searching for a reputable person or organisation is paramount, a competent professional whom you can trust.
Once you’ve picked your provider, the next big question is what to buy…
Unfortunately, we can’t offer financial advice, we don’t know your circumstances, your goals or risk appetite. This is best planned in consultation with professionals. But, we can offer an option: Flagship Investments Ltd is a Listed Investment Company (LIC) that has been around for over 20 years. When buying a LIC you don’t just buy one share you buy into a company that owns a diverse portfolio of shares, professionally managed by the appointed Manager. The investment strategy behind Flagship Investments Ltd centres on the view that the economics of a business drives long-term investment returns and investing in high-quality business franchises that have the ability to generate predictable, above-average economic returns will produce superior investment performance. The Flagship Investments’ portfolio continues to outperform the All Ordinaries Index and paying semi-annual dividends continues to provide shareholder value.
We wish you the best of luck on your own investing journey!