Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Research and understand the risks before investing your cash

Research and understand the risks before investing your cash


With the economy improving and some consumers being in a position to invest, the Banking Ombudsman Scheme has published a quick guide on investing. The guide is based on the Banking Ombudsman’s insights from the global financial crisis and is designed to help consumers avoid making similar mistakes.

“Listening to affected customers during the GFC, it became clear that many thought investing through a bank – no matter what the product was – was risk-free or close to it. The reality is that no investment is without risk: even term deposits carry a degree of risk,” says Banking Ombudsman Deborah Battell.

“Customers can be surprised to learn that they are ultimately responsible for making the decisions about which products to invest in. Financial advisers do just that – provide advice. They do not guarantee you will always make money.

“Customers must therefore research the options and products available, read the information provided about recommended products and tell advisers about acceptable levels of risk and how long they want to invest for.

“For first-time investors this means familiarising yourself with the finance sector. If you want to make good investment decisions, talk to people you trust who are experienced investors and research the options.

“This may not stop you losing money due to market fluctuations, but it may save you from investing money you cannot afford to lose in high risk ventures,” Ms Battell said.

On the other hand, financial advisers – including those employed by banks – also have obligations to customers.

Under the Financial Advisers Act, advisers must not mislead customers, they must ensure their recommendations meet the customer’s risk profile and objectives, and they must have gone through a robust investment advisory process.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news