If Direct Shares Are Not For You! Read On

There is no dispute that the share market over the longer term provides the best return. For those who disagree see the below chart. Red is the Australian Share Index Accumulated and Blue is the Property Accumulated index.

Most people own their own home as such they are already invested in the property market and will enjoy the benefits of any growth in the sector. But this is not enough, you need to spread your investment risk and also be invested in the share market as well.

As you can see from the below chart, Australian shares do provide the best return. However it can be very difficult deciding which shares to buy when to sell etc. For many, would be investors this decision proves to be too much, and they never get started.

This does not need to be the case; there are simpler ways to get started in the share market.

The best and cheapest way is through index funds. An index fund will give you exposure to the whole market. As such you do not need to make any decisions on when to buy or sell, this is all done for you. Add to this that index funds provide the lowest fees and clearly this is a great place to get started for the new investor.

When is the best time to get started?

The general rule is to buy low and sell high, the best time to get into the market is when the market is low. Unfortunately this is normally when people become emotional about investing and are selling.

Right now is a great time to invest in an index fund, the market is looking very cheap and is in fact the cheapest it has been since 1984. Getting into an index fund right now will yield fantastic results over a 3-5 year period.

Next step.

If you agree that you want to have more money in three years than you do today, if you own your own property and if you do not have a lot of experience in the market then now is the time to be buying into an index fund.

For little effort on your behalf you will yield great results.

For more information call us today on 07 4771 4577.

Jason Fittler