Many Australians spend a lot of their money investing in funds and other commodities, not just their superannuation accounts. Some go for properties, others for FX (aka Foreign Exchange). Of course, there are more investment options out there, but as an Australian, one thing you should learn about is the ASX.
What is the ASX? What does it have to do with investments? Let’s talk about that:
What Does ASX Stand For?
ASX stands for the Australian Securities Exchange. It is one of the world’s top ten exchanges. It was created in 1987 and operates in all parts of Australia. There are also ASX International Exchanges in other countries, but they are not as big as the ASX in Australia.
What Does the ASX Do?
The Australian Securities Exchange is an exchange, which means that it is a place where people or companies can come to buy and sell their shares. It is also a place where people can start investing in funds and shares they want. When people or companies trade shares and bonds at the ASX, they are called shareholders.
You can buy the shares or bonds with cash, but they can also be bought with your superannuation money. Some people prefer to use their superannuation money to buy shares and bonds because they think this money is better invested than in their bank accounts.
Investing into Funds With ASX: How to Get Started
To invest in ASX, you must first open an account with a brokerage house. Brokerage houses are mostly the same, so they don’t matter. The only thing that matters is that they are licensed and regulated by ASIC.
You can open your account through a bank, or an online broker, but you can also go to a brokerage house in person if you want. Some brokerage houses even offer free ASX investment accounts.
The next step is to decide where you want to put your money. You can choose between shares, bonds, or exchange-traded funds (ETFs). You can also choose between different kinds of shares and bonds. For example, you could buy shares or bonds from Commonwealth Bank of Australia, Rio Tinto, or Woolworths Supermarkets.
Once you have decided what you want to buy or sell, you can place your orders. If you want to place an order through an online broker, you will first have to specify what you want to buy or sell (this can be in units or dollar values) and the quantity that you want to buy or sell.
After choosing the quantity, you will have to choose the price. In case the price of your shares or bond falls, then you will lose money. However, if the price goes up, then you will make money. You can choose a price that you think is good for you.
Investing Using the ASX
As you can see, investing in funds with the ASX can be a lot of fun. It can potentially also be a good way to make money from your superannuation funds. So, if you’re interested in expanding your investing knowledge or trying something new, take a look at ASX. It has a lot to offer to you, and when paired with plenty of research and some carefulness, you can easily make the most out of it! Central Coast Financial Planning Group is a team of financial advisers available to help individuals stay on top of their investments and help them make better financial decisions. If you are looking for financial advice on Central Coast to grow your wealth, reach out to us today!
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