To celebrate World Investor Week (2 – 8 October 2017), Australian Securities and Investments Commission (ASIC) have put together a list of tips to become ‘smart investors’.
Peter Kell, ASIC’s Deputy Chairman said about the tips that “smart investors don’t rely on good luck; they plan, research and understand their investments and how they fit with their financial goals.”
ASIC’s MoneySmart Investor Golden Rules:
- Review your investment needs and goals to develop the right investment plan for you;
- Understand how risky the investment is and decide how much risk you want to take on;
- Use ASIC’s Professional Registers to check if the company or investment scheme is licensed by ASIC;
- Find out how the investment product or company works and how your money will be invested;
- Read the product disclosure statement for each investment product to understand the product’s features, fees, commissions, benefits and risks;
- Use diversification to spread your risk between different asset classes;
- Watch out for get rich quick schemes, know the signs of an investment scam and check ASIC’s MoneySmart tips on avoiding scams.
“With only 39 per cent of Australians reporting that they understand the investing principle of ‘diversification’ it’s important that people are clear about why they’re investing and only invest in products they understand,” said Mr Kell.