Golden rules of in­vest­ing

Wangaratta Chronicle - North East Regional Extra - - News -

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.

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