Review - ANZ Online Investment Account
Review published 3 September 2009. Please read our disclaimer.
People aspire to build wealth by investing in the stock market, yet a lack of time, knowledge and confidence can be barriers that are hard for the average person to bypass. ANZ has introduced a new wealth product that simplifies the process of buying shares by combining an online share investment account with the familiarity of an online savings account. You deposit money into an ANZ Online Investment Account and ANZ invests that money into an index fund linked to the ASX 200, Australia’s biggest 200 listed companies. Best of all, your money can be accessed in a turnaround time of 24 hours. WHO DOES IT SUIT?The ANZ Online Investment Account should appeal to all would-be share investors who are not comfortable with the DIY model of trading shares. Those who want to do more with their money over the medium to long term will like the set-and-forget simplicity this account offers, not to mention the ease of having a large bank take care of the buying and selling of shares on your behalf. This account suits those who do not have an in-depth knowledge of the stock market but who understand the risk-return tradeoff and accept the market risk.An ANZ Online Investment Account can be opened with only $1,000 and added to by a minimum of $100 so it’s not exclusively for those with deep pockets. In fact, the account provides a simple format for parents to introduce their kids to share investing, or to invest money for their children's future. USEFUL LINKS
HOW DOES IT WORK?
At first glance, the Online Investment Account operates in a very similar way to an online savings account. Money is transferred in and out over the internet, and the balance appears alongside other accounts on your ANZ online banking login. Functionality is similar to online banking.Once funds have been deposited in the account, ANZ uses those funds to buy units in an index fund that is linked to the performance of the ASX200 - Australia’s biggest 200 listed companies. Your investment is then linked to the value of the units you hold in that fund. ANZ has opened the door to small investors by keeping the minimum initial investment low. An account can be opened with $1,000, and can be added to regularly with a minimum of $100. Total annual management fees are 1%, and there is a transaction cost of 0.25%. For small investments these fees are more economical than sacrificing $30-$40 in brokerage for each trade. Whilst the account is suited to longer-term investments, when the need to withdraw money arises it is a simple and quick process. Withdrawals are made online, and if done before 12:45pm on a trading day, money is cleared the next working day. There is not the several day delay seen with some other types of investments, as ANZ bears the settlement risk and makes funds available the next day. The amount you withdraw is derived from ANZ selling units in the fund at the market price applicable on that day. Gains and losses from investments are subject to Australian Tax Laws. In some cases, understanding these laws may require the assistance of a professional. ANZ aims to simplify the process by mailing two account statements per year (January and July), as well as a special annual tax statement, received around August each year.  FEATURES*
* Additional terms, conditions and qualifications apply. THINGS TO CONSIDERPotential investors need to decide if the stock market is right for them. They will need to understand the tradeoff between risk and return – the account is not capital nor Government guaranteed, however returns are not limited by a set interest rate. As with all share trading, rates of return are not guaranteed, and your capital may be at risk depending on market performance. You bear the risk on the performance of the fund. If you are unsure if this is right for you, you may benefit from seeing a financial advisor.To make deposits and withdrawals, a linked ANZ account is required. What's New Homepage ... Disclaimer: The information provided in the 'What's New' section is a guide only and may not be complete for your purposes. All information is current at the date of review, and may have changed since then. CANSTAR CANNEX is not providing a recommendation for your individual circumstances. It is recommended that you confirm details of product information with the third party product providers before acting on it. Your use of the information on the 'What's New' pages of this website will be taken as acceptance by you of our website Terms of Use. General Advice Warning: To the extent that any CANSTAR CANNEX data, ratings or commentary constitutes general advice, this advice has been prepared by CANSTAR CANNEX Pty Ltd ABN 21 053 646 165 AFSL 312804 and does not take into account your individual investment objectives, financial circumstances or needs. Information provided does not constitute financial, taxation or other professional advice. You should seek professional advice from a suitably qualified adviser, as well as carefully considering the Product Disclosure Statement and all relevant product details before making any decision about whether to acquire a product. Reference to any products, services or other information, by trade name, trademark or otherwise does not constitute or imply endorsement, sponsorship or recommendation of CANSTAR CANNEX by the respective trademark owner. Please refer to CANSTAR CANNEX’s FSG at www.canstarcannex.com.au for more information. CANSTAR CANNEX Pty Limited ABN 21 053 646 165 AFSL 312804. CANSTAR CANNEX’s website Terms of Use apply to your use of any information on this website. |
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