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Investment What Should You Know About Investing? (Part 1) Investing your hard-earned money isn’t something you should take lightly – so it’s important that when you decide to invest your savings you make sure you do it right. The key is being informed – people who succeed at investing do their homework before they hand over any money. Most people who become victims of scams have invested on the basis of someone’s word and have not properly checked out the investment. How do I get informed? It’s not hard to get information about genuine investments. In fact, the law gives you the right to this information. What’s more, the most important information must be given to you in a simplified form which won’t take long to read. This includes crucial information about: - The risks involved in the investment. - The expected returns. - The fees you will pay. - How easily you can cash it in. You should ask for this information and use it when making your investment decisions. If the information is missing, there’s a good chance it’s a scam. What should I do if I’m unsure about an investment? If you are unsure about any aspects of an investment, keep asking questions or seek a second opinion. If your question is about an important issue (e.g. fees you will pay, or the security of your money) be sure to get the answer in writing. If you can’t understand the answers to your questions, don’t invest. It’s your money so why hand it over to someone who can’t, or won’t, fully explain what will happen to it? For more information on investing see www.sec-com.govt.nz , under “Publications.” Thanks to Ministry of Consumer Affairs. Next time, what information you’re entitled to. |
©2004 The Main Report Ltd