Before smart phones and micro-investing apps, to buy stocks and shares, you had to use a broker and invest large sums. However, thanks to investment platforms and apps such as Sharesies, now anybody can invest, whatever their incomes and assets.
Micro-investing apps are easy and convenient to use. Setting up an account takes a few minutes, and from there you can view your investment options and track your portfolio. And one of the apps with the highest profiles is Sharesies, a home-grown success story that’s recently expanded into Australia.
So to help you navigate the world of micro-investing, and to start you on your journey to becoming NZ’s answer to Warren Buffett, Canstar sat down with the guys at Sharesies to ask them a few questions about their great investment app.
How to Invest with Sharesies. In this article we cover:
- What is Sharesies?
- What can people invest in through Sharesies?
- Why invest in Sharesies and not other apps?
- How much does it cost to start investing with Sharesies?
- How to find out what to invest in?
- How much does membership cost?
What is Sharesies?
We are an online investment platform that was founded in 2017, here in NZ, by six co-founders. Now, we have over 350,000 investors who have together invested over $1.2bn. At Sharesies, our purpose is to create the most financially empowered generation. It’s our vision to give someone with $5 the same investment opportunities as someone with $500,000.
What can people invest in through Sharesies?
Through Sharesies, you can invest in over 3000 companies, exchanges-traded funds (ETFs) and managed funds. We provide access to the New Zealand Stock Exchange (NZX), Nasdaq, New York Stock Exchange (NYSE), Chicago Board Options Exchange (CBOE), and the Australian Securities Exchange (ASX).
For more share-trading info, read: A Guide To Investing When Young
Why invest in Sharesies and not other apps?
We are a wealth development platform, giving people the opportunity to invest affordable amounts, regularly, over a long period of time.
As well as giving access to investment opportunities, we’re also focused on providing education and information, so that people feel confident and motivated to invest.
Some key features of Sharesies include:
- No subscription fees on kids accounts
- Low brokerage fees when buying shares
- Giving our investors the opportunity to invest in overseas exchanges and the ability to have all your investments (NZ, US & AU) in one place
- The option to Auto-Invest making it easier to invest affordable amounts regularly
How much does it cost to start investing with Sharesies?
There’s no minimum investment! Sharesies lets you buy fractionalised shares of everything – companies, ETFs and managed funds – so you no longer have to buy whole shares when you invest! You can spend as little as 1c to … well, whatever you can afford. Easy as!
How can you find out what to invest in?
Before you start investing, there are a few things you need to consider. We believe that it’s important to do your due diligence. This means taking the time to research whether you’re going to invest in something or not.
There are lots of ways to do your due diligence, and it’s personal to what’s important to you, but can include things like:
- Googling a company or reading annual reports; understanding their story, strategy, how they’re performing, who’s in charge of the company. Taking a view on what the future might look like for a company; what do they have planned? Will they still be around in ten to 15 years? What are the risks?
- What’s the company’s impact on the world? Integrated reporting covers the company’s impact on things like the community, or the environment
- Before investing you should also consider your time horizon. Do you want to invest short-term, or build your portfolio over time? Will this be over a year, five years, ten years, or more?
- All investing involves risk, but it’s worth considering what your personal appetite for risk is. How will you balance risk and return? And how will you manage the risks you take? (i.e. through diversification, dollar-cost averaging, etc.)
Overall, there’s no right or wrong answer. It’s about gathering info and taking a view on whether it’s the right investment for you.
How much does it cost?
Sharesies charges transaction fees, known as a brokerage fee.
- 0.5% for orders up to $3000
- + 0.1% for orders above $3000
If you buy shares in more than one investment, they’re treated as separate orders and have separate transaction fees.
Sharesies exchange fee: 0.4%
There’s also a management fee built into the price of ETFs and managed funds, charged by the fund manager. The fees are different for each fund, so check the fund info before you invest.
Guide to the lingo
If you don’t speak finance, here are a few of the most common terms, as used above, and what they mean:
- Shares: When you buy shares, you invest in a particular company, like Tesla or Facebook. Shares can be bought or sold between people on an exchange, which is a market where people can trade shares.
- Exchange traded funds: ETFs are a group of different assets rather than one particular company, but they trade like shares on an exchange. Think of it in terms of a bakery. Buying individual doughnuts is like buying shares. You pay the price for each different kind of doughnut. An ETF is like buying a box of doughnuts, you get all the different types, which can be grouped by a theme.
- Managed funds: These work a bit like ETFs, except they don’t trade on an exchange. There’s a person behind the fund doing the calculations. You can buy them directly from the fund provider or through an investment app.
KiwiSaver: investing in all Kiwis
If you’ve KiwiSaver, you’re already a seasoned investor. KiwiSaver is a great way to invest in your future, from a first home through to retirement. And whatever stage of life you’re at, it’s something that you should actively manage to ensure you’re earning the best returns and value for money.
So when was the last time you checked your KiwiSaver balance, or compared returns and fees? It’s as easy as clicking onto Canstar’s KiwiSaver comparison tables!
For more information about Canstar’s expert KiwiSaver ratings and our 2020 KiwiSaver Scheme Provider Award click this link. Or to compare KiwiSaver providers, click on the button below.
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