InvestNow does not charge its customers an administration fee. In return, fund managers increase the exposure and accessibility of their funds, hopefully resulting in more customers. InvestNow’s custodian is Adminis Custodial Nominees Limited, run by a specialist Wellington based investment administration company, Adminis, so are completely independent from InvestNow. No I didnt read the sky tv annual report :) I leave that to the shareholders to watch their deteriorating position. Get new investing articles in your inbox. You can top-up your Sharesies account through bank deposit or by credit card. I split my $50 high risk funds and made minuscule returns. They have gone from $2-3 a share in 2016 to around $9 today, pretty impressive. With both platforms you can also generate a detailed PDF report containing all of your holdings and transactions at any time. Tell that to the longsuffering shareholders who have been duped. Yes, they are a bloody rip off, I use tradestation for US shares, and the fees are far more reasonable, a flat $5 per trade on equities, up to 10,000 shares per trade. What matters is that you know what the index means in real terms so you can evaluate the data appropriately. You also get a wider offering of funds, including the low fee Vanguard and AMP index funds. Sharesies’ custodial arrangements are not as robust as InvestNow: Further Reading:– What happens to your money if InvestNow or Sharesies go bust? With the Australian property market in trouble and the big Australian banks in NZ, with currently no NZ deposit guarantee, or only a small one ($30-$50K) coming, is money any safer in NZ? Written by Renae Williams Updated over a week ago Withdrawing money from Sharesies If you're wanting to get your money out of Sharesies. They allow you to invest in large range of funds in once place, and manage your investments through their online portals at anytime of the day or night. We noticed that you're using an ad blocker. I agree that the portal has room for improvement, but personally I think it’s perfectly adequate once you familiarise yourself with it. If the government is serious about removing the concentration of investment in residential property addressing the issue of excessive fees is of paramount importance. The content of this article is based on my personal opinion and should not be considered financial advice. You can read more about Sharesies’ custodial arrangements here. This includes dividends, rental returns, insurance, rates, maintenance, costs for eviction and repair, etc. Just wondering if dividend reinvestment is offered by sharesies and hatch? However Sharesies is set to be a real disrupter by offering lower brokerage fees. There is quite a bit of overlap between the funds you can find on InvestNow and Sharesies. There is a reason that they are high yield, unsustainable is a word that springs to mind. sharesies.nz -$30pa -small choice of smartshares -daily purchase/sale at market at no fee -Easy to deal with and transact -Might be of interest to some of you out there I have signed up, transferred a small amount, and placed an order As to index tracking, to me it does make sense to incorporate dividend yield in the index. That leaves just Sharesies and Superlife as available fund providers. It’s also mobile friendly – in fact they use the same responsive interface for both mobile, tablet, and desktop. Henk Hustle Investing 8,194 views. .... You start with a large fortune and before long it will be a lot smaller. I wouldn't mind giving it a go but would have to take such a big loss to get my money out of sharesies at the moment! Not sure if push came to shove. If you'd like to sign up and give it a go, please click on the following link to help with the production of this podcast Giving the person with 1 cent the same opportunities as the person with $1m is one of the foundation principles used by the founders of Sharesies to bring their product to the market. In my opinion- Investnow, Sharesies, and Hatch are currently the best services for Kiwis- they are all New Zealand owned and operated and offer low fees investment options. Legacy investment services like ASB securities and Direct broking have high fees, and Stake is not regulated under the NZ markets authority. Investing in individual companies vs funds – what’s better? I have already explained the impairment of goodwill. However, there are a few reasons you might want to consider Sharesies: So that concludes my comparison between InvestNow and Sharesies. In fact- they have so many funds that sometimes it’s hard to know which funds to invest in. The shares, and by quite some margin. InvestNow also offers ANZ, BNZ and SBS Bank term deposits. The balance sheet can certainly support the forecast 60% payout, given comfortable net debt/EBITDA of 0.8 especially as the no-moat-rated group is still forecast to generate around NZD 70 million in free cash flow a year. The risks are real and those not-so-jazzy looking product disclosure statements still need to be read and understood. Sharesies is a Wellington-based platform that offers you access to over 170 companies listed in New Zealand. Pointing out individual shares that are not generating huge capital gains is a bit silly. The bonus is that you have time on your hands to invest in sorting the mess out. Retail investors have always been able to access local and global share markets. Info on how long it takes for money to go from your bank account to your Sharesies Wallet. You may wish to consult with an authorised financial adviser before making any investment decisions. This means investors can shop for the best rates, without opening accounts at numerous banks. I can tell you I did pick a dog and realised a ~50% loss, but other stocks more than made up for it. They have low minimum investme… Your options to workaround this might be to: Sharesies’ auto-invest allows you to invest $5 or more into a selection of funds either weekly, fortnightly, every four weeks, or monthly. InvestNow doesn’t charge its users. Sharesies only has two other funds available in addition to the Smartshares ones, while Invest Now has 73. Shares are inherently risky and bricks and mortar are about the safest investment available which is why banks lend on houses. your partner) control of your account, or allow someone to view your account (e.g. It's quick to sign up. An Australian platform, Stake, is also testing its product in New Zealand and plans to launch in coming months. It's only been going since June, so how did startup Sharesies capture thousands of customers and millions of their hard-earned money? We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Which has been more profitable for you, the shares or the investment property mfd albeit that the property gives you more stress? What marketing strategies does Sharesies use? Sharesies also offers you the ability to invest in individual companies listed on the NZX, but this won’t be a focus of this article. 4,156 1. swazi. Both platforms continue to cause confusion as many investors struggle to decide which to use – the choice as not as easy as deciding between Cadbury and Whittakers! With my share holdings, I pay the companies management team to deal with the day-to-day issues. I’ve compared the cost on those ETFs on… What’s not to like? It's reasonably profitable - I wouldn't call it spectacular and still consider myself a newbie. Creation date: Not Available In my opinion index funds are for the really young and the super old. Sharesies offers half price account fees for under 18s, but InvestNow still wins with their zero account fees. The same investment made in NZX-listed stocks via ASB Securities (one of the most affordable online brokers) would incur fees of NZ$30. Learn more here. InvestNow makes money by charging fund managers to have their funds listed on the platform (I suspect this is through a commission). The major goal of investing is to generate investment returns, and this fee is definitely a big drag on that – If you invested $500, over half your potential annual return is eaten up by the subscription fee! I've also had the same tenant for a few years now and have been pretty gentle with the rent raises as they're looking after the place quite well. (And frankly, there are lots of places for detailed comparisons. Hatch vs. Sharesies vs. Investnow etc. Most of the time you are going to be better off going with InvestNow (myself included). Neither InvestNow or Sharesies allow you to hold your investment under your name. No, they are not "in loss" as you put it. For investors who are of the mind that the market always outperforms someone trying to pick stocks over the long-run, paying very low fees of around 0.03% to invest in a broad range of Vanguard ETFs is an attractive option. Found this article helpful? If my tenant decides to leave, I have to find someone else. Creation date: Not Available Hatch vs. Sharesies vs. Investnow etc. Meanwhile Sharesies charges annual or monthly subscription fees for its services (on top of fund fees). I really like this idea, as it’s an elegant way of helping a friend or family member build their investment portfolio. The people that bleat on about how the house price has gained 3%, but neglects the 2.5% cost for insurance, rates, and maintenance are quite confused about total returns. They also offer more than 35 funds, some of which are Vanguard funds mediated through SmartShares. This starts at zero for balances of $50 or under, then $1.50 per month for balances from $50 to $3,000, and over $3,000 it’s more cost effective to pay the annual fee of $30. InvestNow vs Sharesies – Ultimate Fund Platform showdown and ... InvestNow vs Sharesies – Ultimate Fund Platform showdown and ... InvestNow's Flexible KiwiSaver Scheme Review. NZ shares: Sharesies vs InvestNow vs Smartshares Launched in March 2017, InvestNow is an online investment platform based in New Zealand. These used to be good solid companies. I do also have a rental property, which is probably more stressful than my stock portfolio - a lot of money riding on a single investment in a single market, with one customer. There are a few more forms if you're setting the account up under a family trust, but it's not too bad. It has been granted a robo-advice exemption by the Financial Markets Authority, so may in the future provide users with personalised financial advice online. Sharesies is soon about to start offering fractionalisation by enabling investors to buy parts of shares/units of companies and funds listed on the NZX. That, and changing how share assets are taxed, i.e. Cadbury vs Whittakers. Got a couple fund updates in October 2017 including regular investing with InvestNow, cheaper SmartShares management cost, more fund options in Sharesies and new fund with Simplicity.. But most people here seem to like investnow compared to something like sharesies primarily due to the lower fees. Does anyone have any thoughts on the pros and cons and what kind of investor should use which platform? Stop spreading misinformation yankkiwi the nzx50 gross index was around 2000 in 2002/03 and had only increased to 2500 by 2009 that is 500 points not percent. Auto-invest is coming soon to Hatch. I am amused by some of the commenters above, particularly Houseworks comments. Thanks Jenée ..........just the article I've been looking for..will follow to see readers experiences. Isnt that a quote from Morningstar on 16 may this year, referring to forecast earnings, in which case not from the annual report. It also gives investors the opportunity to pay low wholesale rates to invest in funds that track markets. Does your share investing take much time each week? It looks like he did rather well to grow NZX. Invest Now, which launched in March and is in the process of buying Rabo Direct’s managed funds business, has over $100 million under management. Smartshares, InvestNow and Simplicity are not an option for the $100 investor due to their minimum start up requirements of $500, $1,000, and $250 respectively. How? InvestNow just rollout their regular investing options. I've a third of a century of prudent and relatively low risk investment in the share market. Brokerage is definitely cheaper with sharesies which is all good. This makes it easier to achieve diversification. I'm quite happy to have an index that captures total returns. If you are not already registered, please register to comment. By the eighth anniversary of its listing, NZX had generated a total return to shareholders of 535 per cent, or 24 per cent per annum. There's used to be a 10K USD minimum to start an account, but they've recently relaxed this. Just for the sake of curiousity, I went to the rbnz website and looked at the HPI for the same period in question (6/2003 to 6/2011). I have checked the figures and apparently they recorded a loss last year of very nearly a quarter billion (241 million), is that not right? Vanguard through InvestNow. Now, that is my kinda pathetic! You own the shares, but your name does not appear on a share certificate. Just like our range of Managed Funds, we bring you Term Deposits from a number of banks here in New Zealand. The exception is if you’re investing in any of the Australian Unit Trusts on InvestNow – you may have to complete a tax return for these as they are overseas investments. InvestNow’s regular investment plans allow you to invest a minimum of $50 per fund weekly, fortnightly, monthly, quarterly, or six-monthly. A very common concern when investing through these types of platforms is who actually owns the investment, and what happens if the platform goes out of business? For example, while you can use Sharesies to invest in shares, ETFs and managed funds, InvestNow provides access to managed funds and term deposits. ..or NCM.AX. The effective cost of debt for the loan is, https://www.moneyhub.co.nz/hatch-invest-review.html, https://help.hatchinvest.nz/en/articles/1804597-do-i-own-my-shares. InvestNow also allows you to give other people access to your account. The index was modified to gross as a result of pathetic returns. Thanks, looks quite competitive. Helpful info about your Sharesies Account: personal details, password, Sharesies subscription, etc. I’d like to see annualised returns reported. For them, the NZX50 is now at 10,544 compared to ~2,500 10 years ago, and the S&P500 is at 2,995 compared to ~1,000 10 years ago. So small in fact one would question their viability. The proliferation of financial technology is giving do-it-yourself investors an increasing number of ways to manage their money. Those wanting to invest in managed funds have largely had to do so directly through fund managers. In terms of total return, one needs to look at all aspects. … This is probably partly due to their fractionalisation feature. While Hatch’s interface is clean and user-friendly, the sheer number of funds and companies it offers lends itself towards investors who know what they’re after. Helpful info on how to put money into your Sharesies Wallet and how to get money out. Both platforms make their money by charging fund managers for hosting their funds. For example, I’ve never been a fan of them allowing you to sort funds and companies by ‘highest dividends’ and ‘highest returns’. Sharesies makes it easy to start investing—no jargon, no minimum buy-in, and all online. For example, let’s say you want to make weekly investment of $100 into a portfolio consisting of 90% into a share fund and 10% into a bond fund. I split my $50 high risk funds and made minuscule returns. She can’t move immediately to InvestNow because they require a minimum of $250 to get started. Shareholders spend all their time worrying how they are doing and whether the Dow or FTSE has crashed overnight. Sorry next time I will read all the small print and exclusions in advance. Until this discrepancy is addressed our financial markets, particularly the equity and bond markets will continue to lag as an investment choice for retail investors. Sharesies Coupon - couponsbuy.net. There are heaps of great rivalries around NZ and the world, and InvestNow vs Sharesies is one of them when it comes to the NZ investing scene. If property works for you, go for it and fill your boots. Join over 70,000 Kiwis like you who’ve invested more than $450 million through Hatch. While platforms’ user experiences might make investing look fun and appealing, it isn’t a game. Host name: 184.108.40.206. Once orders begin processing with InvestNow, they then take at least couple of business days to settle (i.e. Sharesies charges a subscription fee based on the value of your portfolio. at least couple of business days to settle. All in all it's an easy, good experience. Yes, DriveWealth doesn't hold your securities. Given Sharesies targets beginner investors, this feature could encourage investing based simply on past returns and biggest dividends. Discussion about Sharesies vs InvestNow vs SuperLife vs something else? What happens to your money if InvestNow or Sharesies go bust? Fund Platforms are services that offer you access to a variety of different funds to invest in, sometimes described as a “Fund Supermarket”. "ASB Securities, which is one of the most affordable online brokers, charges investors NZ$15 per trade under NZ$1000, NZ$30 for trades between NZ$1000 and NZ$10,000 and 0.3% for trades over NZ$10,000.". See my article How to invest for kids in New Zealand for more info. 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