FMA publishes guide to shares for investors

The FMA has published a guide for investors on the nuts and bolts of choosing, buying, owning and selling shares.

The guide, Share this! deals with the steps involved in investing in shares as well as the potential risks, to help people decide whether shares are the right investment for them.

“Shares can provide good returns, but this is balanced with higher risk of loss, and the time required to research companies and track performance,” says FMA Acting Director of External Communications and Investor Capability, Scott McMurray.

“Our guide provides an unbiased, independent, overview to enable people to be better informed about investing in shares and understanding the risks involved. They should also be aware of the need for more active interest and monitoring of the companies they are invested in.”

“We want to help New Zealanders choose and use investment products, such as shares, as part of our focus on improving Investor Capability.”

The guide was developed with input from the NZX and the NZ Shareholders Association.

In a survey conducted last year, FMA found the number of people saying they intended to invest in residential property fell, while those intending to contribute more into KiwiSaver or put more into managed funds rose.

Investors who rated their recent interaction with their financial provider as excellent were also likely to be considering investing more compared to investors who didn’t have a good experience. Over half of those with an investment were considering making changes to their investments.

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