New to investing?

Taking the first step on your investment journey

In simple terms, investing is about putting money into an asset with an expectation of gain and the options can involve something straightforward like earning interest on a deposit at a bank, through to something more complex like purchasing a selection of diversified local and overseas shares.

While we believe investing should be for everyone, we understand it can seem complex and knowing where to begin is often the hardest part of starting your investment journey.

Before investing any money, it's worth taking a step back and asking yourself one simple question: What am I investing for?

Your investment goals will influence almost every decision you make. You may be investing to buy your first home, build long-term wealth, save for retirement, create an income stream or leave an inheritance for your family. Each objective may require a different investment approach.

The next consideration is your investment timeframe. Generally speaking, the longer you can remain invested, the more opportunity your investments have to grow and recover from the inevitable market fluctuations that occur along the way. Short-term goals often require more conservative investments, whereas longer timeframes typically allow investors to take on more growth assets, such as shares.

Understanding your tolerance for risk is equally important. All investments involve some degree of risk, and investment markets naturally move through periods of both optimism and uncertainty. It's important to build a portfolio that allows you to stay invested during these periods without losing sleep.

Before investing significant amounts, it's also sensible to have an emergency fund available for unexpected expenses and to ensure any high-interest debt has been addressed. Investing works best when you don't need to access your money unexpectedly.

Diversification is another key principle. Rather than placing all your money into a single company or investment, spreading your investments across different asset classes, industries and countries helps reduce the impact of any one investment performing poorly.

Most importantly, remember that investing is a long-term journey rather than a short-term event. Markets will always experience ups and downs, but history has shown that patient investors who remain focused on their long-term objectives have generally been rewarded over time.

Additional Information

For a more comprehensive overview of investment fundamentals, we’ve produced a simple Introduction to Investing guide. It will help you understand some basic topics and get you thinking about what type of investments might be right for you.