Dec 20, 2007

our first investment

as i said in my previous posts a few days ago, i will be investing in mutual funds. i just did! half hour ago!

Bank4 required at least $250 minimum investment and that's what i put in. i bought the fund - a cash advantage fund (unit trust category) - at $1.0052. this means i bought about 248.7 units. it was priced at $1.0035 a week ago. i know it's not much but it's something!

a few more good stuff:
  • no fees (entry, exit, or management)
  • tax breaks (it is capped at 33% and will be down to 30% starting 1 april 2008)
  • a low risk fund that invests in a deposit with Bank4 (at this time it's at 2/7 risk level)
wish us luck! :)


  1. I bought my first managed funds from the same bank a little over a year ago. Pretty exciting, isn't it?

    I kept some and sold some but have since started investing in index funds offered by the NZX called Smartshares that you might like to check out. They have the option of a regular savings plan which I find to be very convenient and much cheaper fees. My policy has always been that the fee shouldn't be more than 1%.

    I have also 'invested' in that same bank's term deposits, staggering a deposit of $1,000 for 1 year every two months. At a guaranteed rate of 8.75%, why not?

    Good luck with your investments!

  2. Hi dnp9529!

    First off, thanks for making the first comment! :)

    As I am still learning the ropes into investing, I will have to park Smartshares for now. Thanks for telling me about it! I think it's not far off that I would try it.

    By the way, I think it's very impressive that you are already saving and investing this early! I wish I did the same but I hope being 30 is not too late.

    Happy Christmas!

  3. Hi Tasha,
    I'm so glad that someone in New Zealand has started a personal finance blog. LOL, I'm not committed enough to start one myself. Maybe I will in the future, to keep you company.

    Thanks for the encouragement. I am also very new to this investment game and I hope to diversify my portfolio further by adding my first house into the mix in three years' time.

    I am sometimes embarrassed that I pack my lunch everyday or that I only buy new clothes once a year but I instantly feel better when my friends or colleagues give off-the-cuff remarks like "I'm scared to check my bank balance."

    You'll have to double your efforts for a while but it's never too late to start.

    Good luck and Merry Christmas to you and your family!

  4. Hi dnp9529,

    don't be embarrased that you pack lunches! i'm not sure why you would feel that because a lot of the people i work with pack their lunches. about buying clothes once a year, i think that's a smart thing to do too!

    i've been looking at smartshares website and i think i might need your opinion about investing with them. as you know, i'm very much a newbie about investing. i'm just starting to learn the concepts, terminologies (ETFs, blah blah), and everything! what's the return like? how long have you been doing it?

    about house buying, my partner and i are not planning on doing it until about 3-5 years down the road. i'm just thinking if that's a good step to do since we plan to stay in our current rented house for a long time.

    happy christmas to you and your family as well! :)

  5. Hi Tasha
    I plan to eventually have holdings in each of the five Smartshares options and just rebalance them from time to time (i.e. put away a lump sum into some funds so that they roughly are worth the same amount).

    As I have only started late this year, I don't really have a strong opinion of them.

    Diana Clement
    and Mary Holm on Smartshares.

    One option to look at is to appoint Smartshares as your KiwiSaver provider as they offer the same products but you don't need to start with the minimum $1,500 initial investment.

    Try talking to them, research, research, research and seek professional advice if necessary. Don't rush anything.

  6. dnp9529 you should be blogging too by the sounds of it! I had spotted you a while back on Networth.
    Sorry Tasha here I am and the chat is to someone else. Good luck with your investments - I don't think it is too late at 30, or I am really stuffed starting at XX! lol
    If you can find it try reading a book called The Richest Man In Babylon. I have been advising everyone to read this book.
    If you can't get it let me know and I can post a copy to you (no charge).
    I am glad that some other Kiwi girls are blogging about personal finance, I think it is important. Your are doing what all the "experts" say ie study, study, study. The better educated you are about finance the better choices you will make about them.