They’re generally paid based on how many shares you owned or purchased the day before a particular date (that’s the ‘ex-dividend date’). Now let’s take a look at the other side: losing money. You might need to sell your shares first to get the money into your Sharesies “wallet”. There’s also two ways you can lose money, and they’re pretty similar. Written by Renae Williams While it can have its ups and downs in the short term. Use it before it's gone. The Fund Manager then tells the Custodian what to do with the money, for example, which shares and bonds to buy or sell in order to make up the assets of the fund. Let's say that you have $1,000 set aside, and you're ready to enter the world of investing.Or maybe you only have $10 extra a week, and you'd like to get into investing. Let’s assume you make 7% in investment returns in one year. It is not able to do anything with the money unless you give the instruction to do so. Sharesies is expensive for beginners Yes, you can use “market trades” on Sharesies to do day trading where you make trades usually within a few seconds-minutes As long as the market is open. For example, Spark has a dividend yield of around 8%. To get a capital gain, two things need to happen. How do I make money from investing in shares? Both InvestNow and Sharesies are fund platforms. With Sharesies, you can invest in a wide range of companies and exchange-traded funds on the New Zealand Stock Exchange (NZX) and three US exchanges (NYSE, NASDAQ, and CBOE), as well as NZ managed funds. That may not seem like much, but remember that it’s 8% in cash, every year, without you having to sell anything. When you invest in a fund, your money goes straight to the Fund Manager’s Custodian. Diversification can also help reduce risk over time! Topping up your Sharesies Wallet usually takes about as long as a bank transfer between banks. This sounds like a long game—and it is. Simply put, Sharesies is not ideal for those starting out with small amounts of money. It is easy to add money to your Sharesies wallet. Both Sharesies and InvestNow let you invest in many fund managers without the minimum investment that many fund manager usually charge if you go direct. Diversifying like this gives you some ongoing income to reinvest, or spend, while also giving you access to longer-term capital gains. If you spent $10 on 10 shares for a dollar each, you still have 10 shares, no matter what happens to the price. For example, while you can use Sharesies to invest in shares, ETFs and managed funds, InvestNow provides access to … Investing involves risk. Finally, Sharesies also allows you to invest in a small number of managed funds. While we can't provide any personalised financial advice or tell you what to invest in, we always advocate a long-game investing approach. That’s when Sharesies amped up its media initiatives, assuring investors that wealth is built over the long-term, through its Lunch Money newsletter, podcast, and various social pages. If you had one share in a fund that gets a dollar per share from the companies it invested in, then you get a dollar. Auto-invest allows you to set up a regular investment into whichever NZ funds you choose, helping to make investing a habit! For many of you who are worried about making investments and buying shares through Sharesies, it keeps your money safe by using the custodial system. Anyone can have an investment portfolio. On the other hand, you need to remember that dividend yield is based on information from the past. Step 3. This means that the value of your shares can change day to day, but your realised capital gain is fixed at the moment you sell your shares. Sharesies isn’t a 'get-rich-quick' scheme — we encourage investing an amount you can afford, regularly, over a long period of time. Investing involves risk. Sharesies has a stock of a broad option of Gifts at a competitive price. This platform aims to keep things easy and simple for the investors so that when they start investing, they already know what they are getting themselves into. These are paid in cash (as in, you don’t have to sell anything), and they usually happen a couple of times a year. Any information we provide is general only and current at the time written. Dividends: getting income from your shares. Some of the ETF issuers are (click each o… How do the charges compare? If you have any questions, you can email the team at help@sharesies.co.nz . Can you day trade on Sharesies? Sharesies vs InvestNow vs Smartshares: Available markets. If the price of your shares change, but you don’t sell them, you haven’t really made or lost anything. There is a cost to this though. For example, if you want to exchange $1,000 NZD to USD, you’re charged a $4 NZD exchange fee (0.4% of $1,000 = $4). When you’re investing, even for the long term, you have one main goal: to make money. Market data provided by Refinitiv, Drivewealth, and IEX Cloud. Hatch is another Wellington based service owned by KiwiWealth, and they’ve recently reached over 10,000 investors. When they do this, the idea is to increase the capital gain (by making the company more valuable), rather than give the money to you directly. We've partnered with Drivewealth to provide access to US markets. You really can have it all! Written by Sonya Williams Updated over a week ago Is there a Sharesies app? To withdraw money from your Sharesies Wallet. Pathfinder Global Water Fund becomes vegan-friendly! Step 2. For the first few years, the discipline of regularly investing will outweigh any returns you receive. And so on, and so forth. It’s important to have a diversified Portfolio so you’re able to weather the highs and lows of the market. Bonus Bonds by far took the most effort. But you might want to make some income along the way. We don’t provide personalised advice or recommendations. The last thing about capital gains is that they’re a one-off. There’s also two ways you can lose money, and they’re pretty similar. Once you sell, you’re turning that “paper loss” into a real loss. Generally speaking, the longer you can hold out, the higher the chance is that you’ll make more money when you eventually sell! How to make Sharesies show like an app on your Home Screen. when you use Sharesies to deposit/withdraw money, or buy/sell shares). For example, if you buy some shares for $5, then sell them later on for $7, you’ve made a capital gain of $2. So if you buy shares for $10, and they drop in value to $8, you may feel like you’ve lost $2—but you’ve actually lost nothing, unless you sell. All investments made through Sharesies are purchased and held under Sharesies Nominee Limited, or under the Common Shareholder Number (CSN) of New Zealand Depository Nominee Limited. When you exchange money in Sharesies, you’re charged a 0.4% exchange fee —we show this exchange fee upfront rather than hide it in the exchange rate. This system is scrutinised every year, so there are minimal chances of risks. The other is if the value of your investment drops to $0, and you don’t get a chance to sell it at all (this is pretty rare but does happen!). Hatch gives Kiwis easy access to the United States sharemarket, and with this access comes the opportunity to invest in 754different US domiciled ETFs!!! Is going to be about why Sharesies NZ I the best as compared to any other platforms that offer investing money into companies. This is really important because shares go up and down in value all the time. That’s the great news—you don’t have to choose one or the other (although you can if you want). © 2020 Sharesies Limited. One is that you sell your investment for less than you paid for it. We’ve had a lot of questions asking exactly how you do this, so we thought we’d get into the details. In Sharesies, you can see how much a company or fund has paid in dividends over the past year by looking at the “how you can make money” bit. There are two ways you can make money from investing: Capital gain: selling your investments for more than you paid for them. Step 1. It's only been going since June, so how did startup Sharesies capture thousands of customers and millions of their hard-earned money? Sharesies is not low cost for new investors, as can be seen in my investing series that compares the cost of the biggest index funds in NZ. Each of these providers offers access to a different range of financial products. You aren’t guaranteed to make money, and you might lose the money you start with. Sharesies earns interest on money sitting in your sharesie account that you havnt invested into anything (Including dividends etc paid back to your investment), and they also receive kick backs from fund managers. This gives you heaps of opportunity to diversify your Portfolio, and choose an investment that’s right for you. On a $50 account – that’s a $3.50 return. Sharesies has made investing easy and accessible for all. Sharesies reason for being was and is “to make investing in shares accessible for anyone” and they have specifically gone after people who have never invested before, they have successfully found a whole new market that traditional financial providers either didn’t know how to get, or thought there was no point trying to get, because those people didn’t have enough money to spend. Are paying $ 18 to make money, and IEX Cloud money or investments unless you tell US (. 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