Most managed investments including Exchange Traded Funds (ETFs) are offered by way of units in a unit trust. Units are to a unit trust what shares are to a company; they are the bits that fractionalise ownership. Unit prices often fall on the 1st of July when distributions are paid. Why does this happen? The […]
Term Deposits: The Upside of Higher Interest Rates
Rising interest rates bring many disadvantages to individuals in the economy – especially for anyone with debt – so it’s unsurprising that most of us approach the news of another rate hike with trepidation. But one key advantage of higher rates is the better returns on savings accounts and term deposits. Over the last 12 […]
Understanding Investment Bonds
Investment bonds (sometimes call insurance bonds) were once a popular investment vehicle for high income earners. However, in the mid 1980’s along came superannuation, which soon became the investment of choice for many. Investment bonds are now undergoing a resurgence of sorts. And this is thanks to the restrictions on the amount that can be […]
Investing for Children
I am often asked, “What is the best way to save for my daughter’s university degree?” or “We want to help our son with a deposit on his first home, should we invest in his name or ours?”. Investing for children is fairly simple yet the best way to set up such investments is not […]
Coronavirus and share market insights
Cast your mind back to the financial press of December 2019. How many economists had “a virus caused by people eating bat soup” in their forecasts for 2020? And yet here we are watching with concern the spread of the new Coronavirus, with it being unsettling as a health risk as well as from an […]