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

 

Rocket Lab: Launch Expected

Rocket Lab has delayed the roll out of the launch vehicle called Electron by one day, due to weather conditions. The planned launch attempt will now take place on Tuesday, May 23, 2017. More>>

ALSO:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO:

MPI: Myrtle Rust Appears In Taranaki

The nursery in Waitara (just north of New Plymouth) reported suspected myrtle rust symptoms on young plants to the Ministry’s 0800 number yesterday (Tuesday). More>>

ALSO: