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Portfolio builder

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Published on: Thursday, February 18, 2010

I want to build a portfolio but I don’t know how to do it. Should I go to a full-service broker or a discount internet broker?

Full-service brokers can cost you one per cent of your investment to create a portfolio and one per cent to monitor your investments.

When they buy or sell shares for you, they will charge you again. If you invest $100,000, the cost would be $1,000 to create your portfolio. Some people use a full-service broker to start to learn what they need to know and then migrate to an internet, cheaper broker.

The full-service brokers can give great information and give you access to new floated companies’ shares but they can also make mistakes with their selections. If you do your homework you could create a portfolio, but you do need to do your research and the internet brokers do offer help. It’s great that you want to create a portfolio but remember to be diversified. Have some money in fixed interest deposits or equivalent safer options than shares. Also think about getting exposure to property as well.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice. 


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