House Prices

Share investing can be easy



Q: What are shares?

A:
When you buy a share you get a small slice of a company such as Telecom NZ. As a result of your ownership you are usually paid a portion of the profits as dividends. If the share price goes up, you can also benefit from a capital gain when you sell.

Q: What is the difference between shares and funds?

A:
A fund

Tuesday, March 01st 2005

pools your money with that of other people and invests it across a range of companies. You can choose to invest in managed funds that concentrate on a certain sector, geographical region or style of investing, or passive funds, which aim to track the ups and downs of a stock exchange index by holding the same numbers of each share as the index they are tracking.

Q: How do I buy shares and managed funds?

A:
You can buy shares listed on the NZX through a stockbroker. Passive or "Exchange Traded Funds" such as the FONZ and MOZY can be bought in the same way as ordinary shares. To buy a managed fund you can do this through a financial planner, direct from the fund provider such as Liontamer or Fisher Funds or buy via websites such as FundSource (see link below).

Q: What does it cost?

A:
ASB Securities' online share dealing services - one of the cheapest around - costs $29.45 per trade including a stock exchange fee. If you wanted to speak to a real live stockbroker at a firm such as First NZ Capital you would pay around 1 per cent for your trade, subject to a $50 minimum and the $5 stock exchange fee. Managed funds typically charge an up-front fee, which can be around 5 per cent and also an annual management fee. These charges can eat into the long-term growth.

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Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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