Golden rules of investing
ASIC is reminding investors to work out their financial goals and develop an investment plan be- fore committing to an investment.
"Smart investors don't rely on good luck; they plan, research and understand their investments and how they fit with their financial goals," said Peter Kell, ASIC's depu- ty chairman.
ASIC's MoneySmart website offers the following practical tips for investors:
• Review your investment needs and goals to develop the right in- vestment plan for you;
• Understand how risky the investment is and decide how much risk you want to take on;
• Use ASIC's Professional Reg- isters to check if the company or investment scheme is licensed by AS
• 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 prod- uct'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 in- vestment scam and check ASIC's MoneySmart tips on avoiding scams.
ASIC's MoneySmart Investor Toolkit is part of a suite of free tools and resources developed for retail investors to explain different in- vestment products and concepts, including risk and return and di- versification.
The toolkit asks people ques- tions to build their investing profile and create a personalised refer- ence list to help them explore the tools and resources available on ASIC's MoneySmart website. For more information, see www. moneysmart.gov.au.