ANZ New Zealand

Starting an Investment Portfolio

Contact an ANZ Financial Adviser

Starting an investment portfolio is an investment in your future. Whether you want to supplement your income to improve your lifestyle or save for retirement, it’s important to begin planning now. Getting started is the hardest, but most important step.

• Step 1 - Develop a plan
• Step 2 - What are your financial objectives?
• Step 3 - What type of investor are you?
• Step 4 - Seek professional advice

Step 1. Develop a plan

		There are many choices when it comes to investing. However, with the help of a financial professional, finding your way through the maze of investment options is a lot easier. Developing a plan can help provide a clear approach to investing, by setting out your financial objectives and how you are going to achieve them*. Once a plan has been prepared, it can be revisited periodically to help track your progress, as well as determine whether modifications may be needed. By first examining your individual needs and objectives, an ANZ Financial Adviser can provide the information and advice to determine the right investments and strategies to reach your goals. *There are fees for plan preparation which your Financial Adviser will fully discuss with you before commencing.

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Step 2. What are your financial objectives?

		Your financial objectives can vary from saving for your children’s education or retirement to investing for income. Prioritising your financial goals and when you would like to achieve them will help your Financial Adviser to determine the types of investment and strategy most suitable to reach your goals. As a general guide, goals can be classified as: Short term – one- to three-year investment time horizon Medium term – three- to five-year investment time horizon Long term – five-year-plus investment time horizon.

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Step 3. What type of investor are you?

		Determining the type of investor you are, otherwise called your investment risk profile, is important because it ascertains the suitability of certain investments and the best combination of asset classes in your portfolio. Your investment risk profile relates to: How comfortable you are with different types of investment. Your tolerance of investment market fluctuations. The probability that your investment returns may not meet expectations. There are many things to consider when determining your risk profile, however with the help of an ANZ Financial Adviser, it can be much easier.

Asset class characteristics

Asset

Income

Poten

Risk

Time

class

capital growth

horizon

Cash

Moderate

None

Low

Short - up to one year

Fixed interest

High

Low

Low- mod

Short to moderate – up to three years

New Zealand shares

Moderate

High

High

Long – five years +

International shares

Low

High

High

Long – five years +

Property

Moderate

Mod- erate

Mod- erate

Long – five years +

Alternative investments e.g. hedge funds, collectables and precious metals, venture capital

Low

High

High

Long – five years +

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Step 4. Seek professional advice

		Contact an ANZ Financial Adviser*