October 3, 2023 • 39 mins
As promised, part B is here! A few weeks ago we covered off Part A, which looked at setting up your own structures to personally own shares, now we're digging deeper into the different ownership structures of shares, ETF's, and managed funds. After this two-part series, you should be informed and confident enough to dive into investing, if you haven't already.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Hello.
Speaker 2 (00:01):
My name's Santasha Nabananga Bamblet. I'm a proud Yr the
Order Kerney Whalbury and a waddery woman. And before we
get started on She's on the Money podcast, I would
like to acknowledge the traditional custodians of the land of
which this podcast is recorded on a wondery country, acknowledging
the elders, the ancestors and the next generation coming through
(00:23):
as this podcast is about connecting, empowering, knowledge sharing and
the storytelling of you to make a difference for today
and lasting impact for tomorrow.
Speaker 1 (00:33):
Let's get into it. She's on the Money.
Speaker 3 (00:36):
She's on the Money. Hello and welcomed. She's on the
(00:59):
Money podcast for millennials who want financial freedom. My name
is Beck Sired and with me is Victoria Divine. Hello,
Divine Victoria.
Speaker 1 (01:08):
I am very excited for this episode, but I'm not
sure that that feeling at the moment is mutual.
Speaker 3 (01:14):
At the moment, you can see right through me, Yeah,
like you always can.
Speaker 1 (01:20):
You're one of those people that definitely shouldn't be given
state secrets.
Speaker 3 (01:24):
Yeah, that's true.
Speaker 1 (01:25):
Like if a ransom man came and kidnapped you and said, Beck,
you need to tell us the code. You'd be like, oh,
the codes one, two, three, four, don't worries. Why did
you need to know? Again?
Speaker 3 (01:35):
Yeah, yeah, exactly exactly what.
Speaker 1 (01:37):
Oh it was a secret. Ah.
Speaker 3 (01:39):
So unfortunately my face and my body and my words
can't keep a secret.
Speaker 1 (01:43):
But that's okay.
Speaker 3 (01:44):
And my secret today is that I do not care
about ship structures, but I feel like I have a
feeling you'll be able to explain it in a way
that gets me excited.
Speaker 1 (01:53):
So you reckon, I think. So. I know.
Speaker 3 (01:55):
A couple of weeks ago, we were talking about this
and we decided to do a part be because there's
a lot of information that goes into this. We were
talking about a few things that sparked my interests and
seemed super important to chat about.
Speaker 1 (02:07):
It did, and it's one of those things where I
was like, Okay, well I don't want to overwhelm people
too much, but also we'll get into it. But there's
like two different ownership structures that we wanted to talk about.
So there was like personal ownership structures, so the way
that you can set up your own personal ownership, and
then the ownership structures that exist inside the assets that
(02:29):
you purchase and those aren't really changeable. It's not like
you can go, oh well with an ETF, I want
the ownership structure to be different. No, no, no, that's just
how an ETF functions. Whereas with your trusts or your
sole trader or your individual shareholdings, like that's all your
choice and you can hold it however you want. Whereas
this is more what you need to consider when buying
(02:51):
shares and what that actually looks like. And I feel
like our community has said a number of times things like,
oh well, if it's not Chess sponsored, you shouldn't be
buying it, and I don't necessarily agree with that, So
we want to, I guess, break down all of those
things that I feel can be really overwhelming at the
start of an investment journey where you're like, hold on,
I was just going to buy an ETF. Well do
you mean to have to think about chess ownership structure
(03:13):
or what's this or what's that. That's what this episode
is about to hopefully give you a bit more independence,
but also I guess confidence to go no, no, no,
like I am where I am and I'm starting here
and that's okay, sure, okay, and all of those terms
and everything. We will discuss a little bit later in
the episode, but yes, we were speaking about this a
couple of weeks ago. Basically the different structures we could
set up personally to own shares, and you promise that
(03:35):
you'd give us a part B and explain the different
ownership structures that shares, ETFs.
Speaker 3 (03:40):
And managed funds use so we can understand them better.
So I'm ready. Let's go all right, let's recap though,
and strip it right back to the start fee. What
exactly is a shit and why should I buy one?
Speaker 2 (03:51):
That is?
Speaker 3 (03:52):
Really?
Speaker 1 (03:52):
Really the start?
Speaker 2 (03:53):
Hey?
Speaker 1 (03:53):
I really like it. So shares also known as stocks
or equities, same stuff. People just call it different things.
Shares is a more of an Australian term, stocks is
a more American term. Equities is more of a finance
bro term. If people are like, oh, yeah, I've been
buying equities, Sit down, sir, you just bought a share.
But essentially all of those things represent ownership in a company.
(04:15):
So when you own a share, you're essentially becoming a
teeny tiny part owner of that company. My favorite way
of looking at it is kind of like a pie chart,
and you took a really tiny sliver of the pie
and now it's your slither of the pie. And what
that does is it actually entitles you to any of
the growth and profit of that company because you're a
little baby shareholder, like you're the owner of the company.
(04:36):
So why should you care about that? Well, owning shares
can potentially give you a chance to grow your money
as the company's value increases over time, and hopefully that
company is doing so well that they're paying dividends. A
dividend is a profit that is distributed to the shareholders
of a company, and you just reinvest that money. Compounding
(04:57):
interest is what that is called. And over time, money
that your money has made starts making more money and
that becomes a really attractive beck.
Speaker 3 (05:04):
Wow, that's just a snowball effect. Yeah, that's investing to
a t god it Okay, okay, okay, So now let's
talk about ownership. You mentioned off air that it's simple
and there are two ways to own shares directly and indirectly.
Speaker 1 (05:16):
I did. I also mentioned it on air, but like
off air, absolutely, I've been ranting about this off air,
like there is definitely a difference, and from my perspective,
you're on the money, babe. But simply put, direct ownership
is when you buy shares in individual companies, while indirect
ownership often involves investing in funds that own the shares
for you gossip. That's kind of like the difference between
(05:39):
a direct share, like going I always use NAB. I
don't know why, let's change it. You're going to buy
a Combank share individually and Bechsaed is the owner, whereas
you might go and buy an ETF or a managed
fund that holds Combank. Combank doesn't know that Beck is
the owner. What Combank knows is that ETF or that
fund you've put your money into, they own a significant
(06:01):
portion of that share. And that's how it's broken down.
It's just an ownership structure. And as we'll get into it,
we'll talk about I guess the pros and cons, but
they are kind of much of a muchness in this
day and age, like in theory. I do get that
I do want to know more about the pros and cons,
But why should I choose direct ownership? Okay, so I
guess to summarize it, pros and cons are good. Direct
(06:24):
ownership means that you actually get to choose the companies
that you get to invest in well. Indirect ownership offers
more diversification, being able to spread your investment across multiple
companies so you can diversify your risk. Direct ownership, as
I said, it kind of puts you more in the
controls seat. You get to choose which companies align with
your personal values and goals. Plus, if those companies perform well,
(06:46):
your returns can actually be quite rewarding.
Speaker 3 (06:49):
Okay, and sorry if this is a really silly question,
but probably not.
Speaker 1 (06:54):
This is She's on the money. No such things, dumb questions,
sit down on, Thank.
Speaker 3 (06:58):
You very much, Victoria Albert. I want to know why
doesn't everyone just do that?
Speaker 1 (07:01):
Why do you just do that?
Speaker 3 (07:02):
Why do you just do that?
Speaker 1 (07:03):
Sounds good right because you're like, especially the way I
just explained it, I'm like, you've got so much control,
you could make money. Beck.
Speaker 3 (07:10):
Usually cool.
Speaker 1 (07:11):
Why doesn't everyone just exactly? Because there's actually a number
of downsides we need to consider as well. So with
great power comes great responsibility, Beck. So they say direct ownership,
it does come with higher risks because your returns are
directly tied to the performance of individual companies. It also
requires a whole heap more research and monitoring. To make
(07:33):
sure that you are as an investor making informed and
smart financial decisions. That kind of like onus, and the
responsibility is far more on you.
Speaker 3 (07:42):
Ah, Okay, I got you. I got you. So I
mean indirect shares have less responsibility.
Speaker 1 (07:49):
I mean, we could absolutely say it that way. That's
how I personally feel about it. Indirect ownership, so things
like managed funds or ETF they offer you far more diverseification.
So essentially what you're doing is when you invest in
a managed fund or in ETF, similar concepts. They're not identical.
We'll get into that, but essentially what you're doing is
(08:10):
investing in a basket of companies instead of just one
direct company, which reduces the impact of you know, if
one company isn't doing so well and you just went
invested in that one, like you're going to feel all
the losses, whereas if that one was one of two
hundred beck it's a lot more consistent, it's a lot
more level. You're getting more consistent returns. And to me
as somebody who likes a more indirect approach to investing,
(08:33):
because I think I've mentioned it before on the podcast,
I do own ETFs, right, and I would argue that
I don't want to say like one of the best investors.
That's not what I mean at all. But like I'm
very educated in this space. I used to do wholesale
direct investing for ultra high netwalth clients. Well, I know
how to do that. I don't want to do it.
It's so much responsibility. Beck I love an ETF like
(08:54):
it works for me and my personal situation because as
much as I adore investing, don't get me wrong, don't
tell anyone, but I do like to have a little
bit of a punt on the side. I do like
finding a share that makes sense to me and reading
annual reports and investing. But that's such a small part
of my investment portfolio because to me, that's fun. And
if we look at the statistics, we know that index
(09:16):
funds and edfs outperform investors who are trying to chase return.
So like me chasing return and picking my individual stocks,
it's not going to put me in a better position
long term, so gotcha. Essentially, it reduces the impact if
one of the companies that you pick doesn't perform well,
and professional fund managers they essentially handle all of that
(09:36):
for you. So say a company isn't performing that well
in your ETF and it's one of two hundred, they
might go, We're going to bullet it because they go
and do all the research and they look into it
and go, you know what, We're going to bullet that
bank and replace it with this other one. It means
that there's a more hands off approach and you kind
of have some professionals in the background. Okay.
Speaker 3 (09:55):
Also, I just realized how different we are as people.
When you said punt. I was immediately like, slap at
the pokeys.
Speaker 1 (10:02):
You know what, that's like what I meant. That's kind
of what I meant. But I do it on the
aox because sports that are not getting my money. In fact,
every time one of their ads comes up, which I
don't know why it does on my TikTok, I'm like,
get off my feet.
Speaker 3 (10:15):
Okay, interesting feat. I respect it. Now let's do a
quick recap. What is an ETF for any managed fund
and are they harder to buy than shares?
Speaker 1 (10:24):
Yeah, okay, that's a good question. Because I keep talking
about atfs and managed funds, we definitely should dive into it.
So a managed fund is also known as like mutual
funds or like a unit trust. These are investment vehicles
in which a fund manager they essentially take all your money,
pull it together from multiple different investors, and allocate those
funds to a diverse range of assets. These could include shares, bonds,
(10:48):
other securities that they want to hold. Managed funds are
typically overseen by what they call a professional funds manager,
so that one usually white dude, Like there are female
fund maashes that aren't many of them. This is obviously
something that the average investor might not do. You might
just go, oh, this one performs really well, Like you
might go to a particular managed fund and go, I
(11:10):
want to know more about it, but you just look
at the investments. I go and look at the investments,
and then I go look at the fund manager and go,
who is he? Where has he worked before? What are
his values? What are his morals? What's his tenure look like?
Has he been working with this particular company for a year?
Is he new? Has he been there for ten years?
I'm honestly, I can't be trusted, so I like to
(11:30):
do that. But essentially, this usual dude actively manages investment
decisions on behalf of the investors. So Becky you don't
have to make that decision because they're going to do
it for you. Sure, and the aim is to achieve
that fund's objectives. So that fund might have different objectives.
So a fund might have the objective to meet the
(11:53):
industry benchmark, So they might go, look, this fund is
just investing in the top two hundred different shares on
the ASA, and our plan is actually just to stay
on track with what the market does. Great, no worries.
There are funds out there that have the aim of
beating the benchmark. There are funds out there that have
the aim of doing lots of different things. Make sure
(12:14):
you know that aim before you get into a fund,
because it might not align with your value. Sure, if
you're someone who's like, you know what, I want a
really low touch ETFU managed fund, I'm just going to
pick one that has the top two hundred. Make sure
that the two hundred that they're picking are trying to
meet the benchmark, not exceed it, because that would be
a different risk profile. Again, because obviously if they're trying
(12:37):
to be way more aggressive, like that's going to be
a different situation than just like, oh, I just want
to track the average of the average so ETF's on
the other hand, they're a type of fund that tracks
the performance of a specific market index or sector. So
I'll give you an example, and ETF might track the
SMP five hundred, which is essentially the top five hundred
companies in America. I've heard about this one. Yeah, that's
(12:58):
really standard. Often when you're like watching the news, so
like you know, like the little scrolling bar at the
bottom of the news, the SMP will usually be reported there,
and a lot of people will be like, I don't
know what that means, And it might be like a
little green arrow going up or a little red arrow
going down, or the yellow bar that's telling you if
the SMP five hundred went up that time or down,
or if it just stayed on track. So they might
(13:20):
track the s and P five hundred, or they might
track like a technology sector and only invest in tech companies.
Just like managed funds ETFs, they pull all of your investors'
money together into one big bucket and they invest in
a diversified basket of assets. However, instead of being managed actively,
so there's no one like Grampooba who's like making decisions
(13:41):
every day making sure everything's tracking ETFs are usually passively managed,
and their aim is to replicate the performance of their
underlying index or sector. So like if it's the technology
sector that I mentioned just before, they just go, oh, well, Beck,
we've put together this list of twenty tech com The
plan is to just get an average return of what
(14:02):
the tech industry returns. You're okay, no worries. That makes sense. No,
they're not harder to buy. That was your question before. Yes,
they're not harder. They're not more complex. In fact, they
are identical to buying a share, Beck. They are listed
in exactly the same way on the AX. You buy
them on a share trading platform, exactly the same way
(14:23):
you would buy an individual share. There's nothing more complex
about the purchase of them.
Speaker 3 (14:27):
Okay, that's good to know.
Speaker 1 (14:29):
What you will find though, while I'm on this topic,
is that a managed funds fees are usually higher than
an ETF because managed funds are actively managed. Sure for
you need to pay for that active management, and ETF
is usually lower fees because there's more of a passive approach.
Does that make sense?
Speaker 3 (14:46):
That totally makes sense.
Speaker 1 (14:47):
So managed funds usually a bit more expensive, usually a
bit more aggressive, usually trying to like beat a benchmark.
ETF's usually a basket of the top performing shares in Australia,
passively managed cheaper to purchase. Both are purchased on the
share trading platform of your choice, listed in exactly the
same way as a share would be cool. Does that
(15:07):
make sense.
Speaker 3 (15:08):
Yeah, I'm really shocked actually that I comprehended all of that.
Oh my god, I did say, thank you very much.
That was fantastic. Now, as we've been talking, I've been
writing down little bits and pieces, so I'm hearing terms
like hin SRN.
Speaker 1 (15:21):
Ches's sexy. It's not the game, it's not the game
the game. Do you know how to play chess? Yeah?
Speaker 3 (15:26):
Oh I love chess.
Speaker 1 (15:28):
I'm not smart enough for chess. I only know how
to do chess through the share market.
Speaker 2 (15:32):
Huh.
Speaker 3 (15:32):
Well, you know, I think that's just as important.
Speaker 1 (15:34):
I would say, maybe more important, Probably the more important,
unless you're like a competitive chess and you make lots
of money. Drew.
Speaker 3 (15:41):
I'm fortunately I'm not at that level yet, but.
Speaker 1 (15:43):
I never will be. Don't worry.
Speaker 3 (15:45):
But no, I do think I need a little bit
of time to break it down. Let's go on a
really quick break and when we come back. We'll discuss
it all.
Speaker 1 (15:51):
I'm excited.
Speaker 3 (15:51):
Let's go cool, we have back fee.
Speaker 1 (15:58):
I'm excited about this.
Speaker 3 (15:59):
We just knocked out the quick game of chess.
Speaker 1 (16:01):
Definitely did not it definitely did not say such thing
as a quick game of chess.
Speaker 3 (16:05):
Actually, probably not. That's probably never exist.
Speaker 1 (16:08):
I reckon it does exist if it was like a
really smart chess person playing against me, because they just
go bam bam bam, Victoria, you're out.
Speaker 3 (16:15):
Yes, okay, I.
Speaker 1 (16:17):
Thought that chess was a like reflection of intelligence as well.
Speaker 3 (16:22):
Yeah me too.
Speaker 1 (16:22):
I'd always be like, oh, if you can play chess,
you must be real smart. Yeah, and I never could
so yeah, I could always felt really something self conscious
about that.
Speaker 3 (16:31):
Oh no, it's not the case of chess. Yeah, absolutely, Yeah.
Speaker 1 (16:36):
Why you're drinks at the bar, you bring the chest
out perfect.
Speaker 3 (16:39):
Now, I know exactly what I said before the break
was that we're going to go into a few different terms.
But I'm curious. I know that you were talking about
how like when you're watching the news, you see that
little bar at the bottom, and I always wanted to
know what the all odds are.
Speaker 1 (16:54):
Yeah, okay, that is a good one. It's very similar
to the SMP so all odds if you want to
look it up on the ASX, which is the Australian
Stock Exchange, its code is x AO and so essentially
the XAO. It tracks the top or the largest five
hundred companies in Australia that are listed on the AX
(17:16):
according to their market capitalization, so basically how big they are,
and that will change over time, like if a company
decreases in value, they might drop off the All odds
and another company that's worth more comes on, So essentially
the top five hundred largest companies in Australia. It's commonly
referred to as the All ords because it's actually considered
the benchmark index for gauging the performance of the broader
(17:40):
Australian market. So the All Odds was originally calculated in
I think it was nineteen eighty with a starting level
of five hundred and represents close to ninety percent of
the AX, so it's not like a little bit of
the ASEX, it's a lot of the ASX and it's
essentially a good way of quickly checking in and seeing
(18:01):
how's the Australian market doing. If the all odds are
down right, it means that ninety percent of the ASX
is on its way down. There must be something going
on in the economy that is, you know, pushing it down.
If the all odds is up, it means the economy
is doing really well. So it's kind of like that
one number that's like a really good sense check or
(18:21):
a pulse check to see what's our market doing. Is
it okay? And it's a good idea to track this
if you're an investor, not because you're going to invest
in it, but because you want to have your finger
on the pulse. And it can be really jarring. Right
as a baby investor you've just started, You're like, oh,
my gosh, my whole portfolio is completely off. Do you
(18:42):
know what makes you feel a lot better? Looking at
the all odds and saying, ah, the broader economy is
a little bit off. Sure, this makes sense. So this
is one of those things. I'm in the middle of
writing my investing master class, and this is something that
you know, I asked the community a little while ago,
just in the Facebook group, because I haven't announced it
publicly that I'm doing that. Listening to this on the pod,
You're welcome, But we're writing an investing mask glass, and
(19:04):
I said, what do you want to know? Like, obviously
I can write everything that I know about the stock
market and what that actually looks like, how to do it?
What to start? And someone's question, I can't remember who
it was, so do apologize? It was my favorite question?
Yet She's like, what does it actually mean to do
your research? So I go back, you know, before investing,
do your research? What the heck can is invest in research?
(19:27):
How do I do that?
Speaker 3 (19:28):
Great question?
Speaker 1 (19:29):
So I've made a whole unit on how to quote
do your research and what to look at and what
can make you feel a bit more comfortable because investing
is one thing. Yes, I can show you how to
do your research to check if a share or a
ETF is a good investment for you personally and whether
you would choose it or not with the right you know,
technology behind it. Sure, but also like what about a
(19:49):
bit of a sense check? Beck, Like, what if you're
a bit stressed, how do I do a bit of
research to make sure that I can just still feel
a little bit comfy in the market? The all odds
is something that I would look at first to go
what's the broader economy doing If that's off, what makes
sense that your shares are off? Beck because the whole
economy is a bit messed up, right now, gotcha? That
(20:10):
might make you feel a bit more comfortable. But yeah,
the all odds is actually really important, and I'm glad
you brought it up.
Speaker 3 (20:15):
Oh great, I've shocked that I finally figured out what
that was, because I feel like it's something that we
joke about in like high school. The all odds are.
Speaker 1 (20:22):
You don't know what it means, but essentially TLDR it's
the top five hundred biggest companies in Australia and it's
a benchmark to see are they doing well? Are they
not doing well? It's why you'll see the all odds.
The numbers aren't massive when they move right. It's always
like the all lords are ze point one percent, right,
like you never hear twelve percent. Yeah, because that's five
(20:43):
hundred companies and the average is going to have to
be pretty significant to have a bigger than a you know,
a one or two percent jump, gotcha. But it'll always
be small amounts and it's just like slow fluctuations. And
then if you look at it over the broader, like
you know, scale of time, because we say on the
pod lame that it's my favorite saying when in doubt,
(21:03):
zoom out, like look at the bigger picture back. You
might see that the all lords over time are just
slowly tracking upwards. That's reflective of a really healthy market.
Or you might see it tracking downwards, like going into COVID,
we saw the all lords track downwards. Going into any
type of recession, we see it track downwards, and you
can see how fast or slow that is and go, oh,
(21:24):
that's happening pretty quickly or that's actually really slow. It's
interesting once you know what it is. Yeah, Okay, I
won't go on and on about it because I totally
go it.
Speaker 3 (21:32):
And I could totally listen all day, but we do
full of it an episode to get to all, right,
what on Earth is h SRN and chess? Are these
online games?
Speaker 1 (21:48):
Online game? Let's do one at a time. Can I
break it up? Because I'm not gonna answer all three
at one time because I think that would be irresponsible.
And while my job often is to completely overwhelm you,
it's funny someone slid into my DMS and the like utoria,
this is so embarrassing, But sometimes I have to listen
to your episodes three times to get them. It's not
embarrassing embarrassing, that's smart. Yeah, it is like do you
(22:10):
know how much research I often do on these episodes
tojam pack them full of information that hopefully you get. Yes,
I can't expect you to walk away. It's like going
to a lecture. Did you listen?
Speaker 3 (22:20):
Probably not watch it three, four, five, six, seven times?
Speaker 1 (22:23):
Yeah, and on like double speed, Yeah, and not spend
that whole time doing it. But it is not embarrassing
to have to go back and listen to it again.
In fact, hard to watch a Barbie movie three times
before I got everything in it, Yeah, exactly, So like
the same should be true for my podcast because like
they're basically on part with a Barbie movie. Right, Oh yeah,
oh absolutely. All right, So let's start with chess, okay,
(22:45):
because it sounds the most like a game, and I
feel like it's most spoken about in our community as well.
So put simply, chess is clearing house electronic subregistered system,
oh sexy. So essentially that means that the AX is
just keeping a list of who owns what chess. That's
what chess means. Okay, So it's the clearing house electronic
(23:09):
subregister system. It's just registering everybody who owns shares in
the ASEX. So if you go and purchase a share
on the ASEX, they want to keep track of everybody.
That's what CHESS does. So if your shares are quote
Chess sponsored, it means that when you buy or sell
shares on the ASEX, it has a record of you
owning the shares directly or not. And this is the
(23:30):
main way in Australia that people buy and sell shares
because they go to a broker, They might go to
an online platform purchase a share and then they will
get a whole heave of paperwork, usually from computer share
that says you now own this, here's your chest number,
here's this, here's that, and it's just tracking that you're
the actual underlying owner of that asset. Just be aware
(23:52):
when it comes to choosing a broker for buying and
selling these because some brokers are and some brokers aren't
Chess sponsored. Don't mean they're worse or different. It's just
something that you need to understand and we'll obviously get
into those different arrangements soon. Okay, So I'm not going
to go on and on about it now because I
know I've got a round coming soon.
Speaker 3 (24:11):
Yeah, you can feel it bubbling up. Okay, So this
is if you're I'm assuming the owner of the share.
But what if you're in an ETF or a managed fund?
Will used to be chess sponsored? Does that?
Speaker 1 (24:25):
So that's where remember at the start of the episode,
I said there's two ways to hold shares. There's indirect
and direct. Yes, So a chess sponsor, if it is
in your name, that would be direct.
Speaker 3 (24:34):
Gotcha.
Speaker 1 (24:34):
ETFs and managed funds are essentially indirect, and that means
you are absolutely correct, Beck. If your shares are chess
ASX sponsored, it means that you personally own them directly,
so like the name on the certificate would say becksayed,
rather than someone else holding them on your behalf like
an ETF or a managed fund in the pool that
we were talking about before, So you would receive dividends
(24:57):
directly if you're the underlying owner of them. So that's
essentially the profit the company pays to its owners, i e.
Speaker 2 (25:03):
You and you.
Speaker 1 (25:04):
Actually, if you're the underlying direct owner, you have voting rights.
Not many people care about their voting rights, and let's
be honest, if you only own one share your voting rights,
they're not going to have the biggest influence. But that's okay.
Some people really really want to have them. Is it
bad that you don't own them directly? Is the next question.
I think people are probably thinking no, not necessarily. Some
(25:27):
people are honestly, wildly passionate about this. You might see
it all over the internet if you are someone like
me who is this embarrassing. Might be troll's reddit forums
about like what shares are being bought and sold, in
people's opinions on different ETFs, like I'm gonna need to
know all of that information, right, But a lot of
people will be like, it's terrible because it's not chess
(25:47):
sponsored and you're not the direct owner of it. Rare anyway,
I could not care less. But some people, as I said,
are wildly passionate about it. But as someone who does
arguably know the industry very well and invests in ETFs
and managed funds directly, it doesn't worry me because all
my investments are still safe and are still secure, and
essentially what my shares in my ETF and managed funds
(26:10):
are operating under is what's called a custodian model. So
that all sounds very complex, you could say, but a
custodian model essentially means that someone else is currently holding
that share certificate on my behalf. It's all above board
if either of those companies, like let's say the shared
trading platform that I have picked, operates under a custodian model,
(26:33):
which means that the etf I board or even sometimes
the share that I buy isn't going to be my
direct name. It's under this custodian model. You might go,
but what if they go bankrupt, Victoria, what if they
lose all their money?
Speaker 3 (26:44):
True?
Speaker 1 (26:45):
Are you going to lose your shares back?
Speaker 3 (26:46):
It's a good question.
Speaker 1 (26:47):
You're not, because it's held under a custodian model, which
means that the owners of that company that you're investing with,
they don't actually have access to that. They can't just
transfer it to their name. Custodian means they're the custodians
of it, not the the lying owner. The share owners are,
and essentially the owner of the share. It isn't as
clear as if it was responsored, but there still is
(27:08):
a direct line of working that out, and that company
can't just yeed off with your shares, Like, you're not
going to lose out in that circumstance. The only way
you would lose out, and you know there might be
an issue with your share is if your share actually
loses value, but it wouldn't have anything to do with
your broker. However, in that custodian model, your shares are
actually held within a trust. So remember in the first
(27:30):
episode we were talking about trusts and direct ownership. Companies
can set up trusts to hold their client's assets. So
my shares are currently being held in a trust by
my custodian, which is my broker, and they're not going
to go missing if that company goes bankrupt or they
shut down. So you're okay. And I think a lot
of people get really worried about that because they're like, oh,
(27:51):
but someone's going to, you know, take off with my
shares because they've got my share certificate and I'm like,
not so quick, Like, that's not how it works.
Speaker 3 (27:58):
Okay, how it works.
Speaker 1 (28:00):
So you're safer than you might think you are.
Speaker 3 (28:02):
That's good to know. It's always good to be safer
than you think.
Speaker 1 (28:05):
Exactly.
Speaker 3 (28:06):
What about HIN and SRN, are they equally.
Speaker 1 (28:10):
Like I'm overloading this episode, but like, I feel like
this all needs to go in the same episode, so
I do apologize, but no, thankfully. So historically shareholders, you
actually would have received like a share certificate, like a
legit one in the mail to prove that you are
the underlying owner of that asset. You can still receive
those if you really want to. I get mine by email.
(28:30):
Shares are now automatically held digitally on what's called a
hi N if you go with a stockbroker, So a HIN.
It's actually very simple. It means hold up identification number. Again.
It's just a number that tracks who owns what and
when and where, which is essentially like an ID card
or an ID number for your shares. It's not super complex.
(28:52):
You don't need to be super across it. Just know
that each time you would buy, you would be, you know,
given a HIN. It's essentially just to track your shares
so the ASEX knows who owns what and when and where.
M mmm, beck. You also asked about an SRN, So
you're gonna have an SRN if you buy shares with
the registry, So youon know how I said before, you
get a HINT if you go with a stockbroker. If
(29:14):
you go directly with the registry, you're actually gonna get
an SRN, which stands for Security Reference number. Again just
another ID number, okay, which is unique to each company's
shares that you own. So both of which are honestly
just acronyms for numbers you're gonna get when you register
your investments. So no matter which way your shares are held,
(29:35):
you remain ultimately the beneficial owner even if the stockbroker
or the registry goes bankrupt. Oh so you're okay, you
safe safe. These are tracking numbers, So if you get
them in the mail, or you get them in your emails,
save them somewhere important, in a folder in your emails,
or like my favorite, I don't care paper in my house,
I'm gonna lose it. But you know what if I
(29:57):
don't lose pieces of paper in my house, I I
have been on the phone and I flip them over
and I draw all over us lists and then I
rip them up like it is not a good idea.
So I actually take photos of all of mine and
just save them in an album in my phone, or
I email them to myself. But definitely keep track of
these numbers because ultimately they are important, but you're not
going to use them every day when you're doing share trading.
Speaker 3 (30:19):
Great idea, d I don't know if you do the
same thing as I take photos. I send it to
myself and I put like a trillion different keywords in
the email.
Speaker 1 (30:27):
I'm like, hi, n identification number for XYZ share share trading,
stop broking investment account, like exactly, because what if I
forget what to google email?
Speaker 3 (30:39):
What future are me going to think about?
Speaker 1 (30:41):
And I can't trust future me. I have proven to
myself I can't be trusted. I agree.
Speaker 3 (30:46):
Okay, so I just want to quickly wrap my head
around this all because it is a lot.
Speaker 1 (30:50):
It is a lot. I'm sorry, but I okay, you've
gotten across it really quickly.
Speaker 3 (30:54):
Thank you so much. I mean, there might be gaps
in my knowledge.
Speaker 1 (30:57):
But so the episode was so that we listen to it.
Speaker 3 (31:01):
To us exactly, if I buy shares directly in my
own name, my own name will be listed down on
the share register. Yeah, I'll be able to buy and
sell individual shares whenever I want. My dividends will be
paid directly to me, and I have voting rights.
Speaker 1 (31:16):
WHOA Yes, exactly. You're the money.
Speaker 3 (31:19):
Thank you so much.
Speaker 1 (31:20):
You're on the money.
Speaker 3 (31:21):
That is so sick. Okay, So while I'm at it,
when you indirectly invest, yes, the name on the share
register is the ETF or the managed funds company. Yes,
not my name, not your name. But they hold the
assets on my behalf and manage what the ETF or
managed fund is made up of. So I don't have
to worry about buying and selling, yes, but I do.
(31:41):
I still get my dividends though. What happens if the
share makes a profit. Oh that's a good question. I
like that you're thinking about this thing now. It makes
me so proud. I'm like, oh, so you're just worried
about where a dividends is going to go?
Speaker 1 (31:51):
Thank you something the profit still goes to you, do
not worry, okay, So it will just be filtered directly
through your et or managed fund. It does get distributed
in a bit of a different way, but it's still
there for you. You are not missing out. Often when it
comes back in the fees that you've agreed to pay
for your ETF or managed fund to get taken out
(32:13):
of that amount and then it gets distributed to you
or through your etfor managed fund. You might have picked
what's called a dividend reinvestment plan, which means they never
give you the cash. They actually just reinvest it back
into the same ETF for you. So it's all automated,
which can be really helpful because if you're planning to
invest over the long term and you own a share,
(32:34):
you know, and let's pretend it paid you ten dollars
this year, you don't want that ten dollars this year.
You want it reinvested into the share market so that
it can grow over time and then when you reach
retirement you can make use of it. But that's what
I mean when I say the money that your money
makes makes money is because the money that your money
made gets reinvested, and then that money makes money. So
that ten dollars that gets reinvested, then you know, might
(32:57):
make a dollar next year, and then that dollar makes
money and it just compounds from there. Okay, So it
doesn't necessarily mean that you're missing out, but it might
get filtered through a different way, but those profits are
still yours. And like, for example, if Combank says that
they're paying a dividend to investors, that is still going
to come to you. Sure you don't miss out?
Speaker 3 (33:16):
Good to know, very good to know.
Speaker 1 (33:18):
Don't miss out.
Speaker 3 (33:19):
Don't miss out.
Speaker 1 (33:20):
And arguably the most important thing about investing is making money.
So like, I'm not going to let you miss out.
Oh joking, I'd be like, don't do that. That's terrible.
You won't get paid. That would be silly, that would
be so dumb.
Speaker 3 (33:31):
I trust that you're not done with teaching, but I
probably amn you're done.
Speaker 1 (33:35):
Okay, don't worry.
Speaker 3 (33:37):
But before we wrap up, how do we pick which
option works best for us?
Speaker 1 (33:40):
Okay? So this is a good question, but also a
really personal question because like, I can't tell you what's
going to work best for you. From my perspective, it's
really important to consider your goals and your risk tolerance
and your lifestyle. Like some people might want to be
individual share traders and consistently, you know, rebalance their own
portfolios and manager that way. If your hands on and
(34:02):
you want to pick your own companies, like direct ownership
might actually be your own style, Beck, But if you're
looking for diversification, maybe a little less involvement, maybe a
little less risk. Because when you diversify more, Beck, you're
lowering your risk. So the more diversification you have, the
more risk you have. Maybe indirect ownership is a better
fit because you go, well, I can get instant diversification
(34:25):
less involvement if I go and buy a top two
hundred asx ETF, And that might make you really comfortable.
But again, you might be widely passionate about picking your
own shares, or maybe you don't want the top two hundred,
or maybe you just want a bit more control. So
it's really going to depend on who you are and
what you do. And as I've said, you know this
is what I do, but I do both. I'm not
(34:48):
saying that both is right for you. I do both
because let's be honest. Direct share investment for me is
me having a good time in the share market. I
love it, Beck It's so lame, like I love not
my research. I love looking at new companies and what
they are made up of, and what their board looks like,
and what their CEO has done historically and how they've performed.
(35:08):
That is not everybody's cup of tea. Everybody else in
our community, or a lot of people in our community
might turn around and be like, V we hear you,
we see you. We understand the importance of investing. We
know that to create financial freedom, we want to invest.
But I just want to send some money into an
investment every month and not think about it again. Ye,
(35:30):
you're a psychopath. I am not going to be looking
at the annual reports of each and every single company,
because one, I don't comprehend them, but I also just
don't care. That's fair and that's so fair. So I
think that understanding the difference between indirect and direct investing
is going to be a really personal decision. But I
think the crux of this episode is helping you to
(35:52):
understand that when we talk about HIN or SRN or chess,
those things are not as important as a lot of people,
you know, jump up and down about and say, Oh,
it's so important. That's chess sponsors so you have direct control.
I personally don't need direct control. What I want is
to know that if everything goes south, my investment is
(36:14):
going to be safe, irrespective of who was the custodian
of that. And I know I'm safe, so I'm fine.
And I think that a lot of people in our
community wanted to hear that, because you go, well, if
it's not chess sponsored, maybe it's less secure, and that's
not the case at all. So that's where I'm at.
But it's going to be a personal decision, not a
decision that I can make for you, because I don't
(36:35):
know you well enough. I wish I did, so let's
hang out.
Speaker 3 (36:39):
I guess, like, lastly, are there any regulations we need
to be aware of?
Speaker 1 (36:42):
A look at you with your questions, all right, So
owning shares obviously comes with lots of different rules and regulations.
But don't worry. We won't dive right now because I
really want to go home now into the technicalities of them.
But just know that direct ownership, as we've been talking
about it means that you have to stay informed and
you have to actively manage your investments, so like you've
(37:04):
got to be across it. You've got to do all
the reporting. Yourself managed options like a managed fund or
an ETF, they actually handle most of the regulation for you.
So that's kind of an attractive thing. We won't Maybe
I'll do a whole episode one day on regulation, but
it won't be that sexy. Sure, maybe will do it
as a bonus for people who are just like me,
(37:24):
because I know you will not give two flying fruit bats.
I've already yeah, you're like, no, I don't even know
why I asked you the.
Speaker 3 (37:31):
I actually have done now, But to make sure everyone's
on the same page, just give us a really quick
overview of one more over, you're like, really drill in envy?
Speaker 2 (37:41):
All right.
Speaker 1 (37:42):
So, obviously today we have covered the basics of direct
and indirect ownership of shares. We have talked about direct
ownership when it comes to investing directly in shares on
the AX or any stock exchange, to be honest, and
we've talked about indirect ownership through managed funds and ETFs. Obviously,
these are not the only asset classes that exist in
(38:02):
the world. These are just two really good examples of
how these work. I think we need to also remember
there's no such thing as a one size fits all approach,
and as I said before, choose the method that aligns
to your goals and your values, not just what someone
on a Reddit thread said was the most important thing. Honestly,
great advice. Don't take Reddit as gospel.
Speaker 3 (38:23):
I'll have to remember that you done done, I'm done done.
Speaker 1 (38:27):
Oh, I think we deserve some cheeky mickeyde's.
Speaker 3 (38:30):
Let's do it. Let's go.
Speaker 1 (38:31):
We have a good week, guys.
Speaker 4 (38:32):
We love you.
Speaker 3 (38:32):
Bye bye, guys.
Speaker 4 (38:39):
The advice shared on She's on the Money is general
in nature and does not consider your individual circumstances. She's
on the Money exists purely for educational purposes and should
not be relied upon to make an investment or financial decision.
Speaker 1 (38:53):
If you do choose to buy a financial product.
Speaker 4 (38:55):
Read the PDS TMD and obtain appropriate financial.
Speaker 1 (38:58):
Advice tailored towards your knee.
Speaker 4 (39:00):
Victoria Divine and She's on the Money are authorized representatives
of money sherper P T y L t D A
b N three two one six four nine two seven
seven zero eight a F s L four five one
two eight nine
Hello.
Speaker 2 (00:01):
My name's Santasha Nabananga Bamblet. I'm a proud Yr the
Order Kerney Whalbury and a waddery woman. And before we
get started on She's on the Money podcast, I would
like to acknowledge the traditional custodians of the land of
which this podcast is recorded on a wondery country, acknowledging
the elders, the ancestors and the next generation coming through
(00:23):
as this podcast is about connecting, empowering, knowledge sharing and
the storytelling of you to make a difference for today
and lasting impact for tomorrow.
Speaker 1 (00:33):
Let's get into it. She's on the Money.
Speaker 3 (00:36):
She's on the Money. Hello and welcomed. She's on the
(00:59):
Money podcast for millennials who want financial freedom. My name
is Beck Sired and with me is Victoria Divine. Hello,
Divine Victoria.
Speaker 1 (01:08):
I am very excited for this episode, but I'm not
sure that that feeling at the moment is mutual.
Speaker 3 (01:14):
At the moment, you can see right through me, Yeah,
like you always can.
Speaker 1 (01:20):
You're one of those people that definitely shouldn't be given
state secrets.
Speaker 3 (01:24):
Yeah, that's true.
Speaker 1 (01:25):
Like if a ransom man came and kidnapped you and said, Beck,
you need to tell us the code. You'd be like, oh,
the codes one, two, three, four, don't worries. Why did
you need to know? Again?
Speaker 3 (01:35):
Yeah, yeah, exactly exactly what.
Speaker 1 (01:37):
Oh it was a secret. Ah.
Speaker 3 (01:39):
So unfortunately my face and my body and my words
can't keep a secret.
Speaker 1 (01:43):
But that's okay.
Speaker 3 (01:44):
And my secret today is that I do not care
about ship structures, but I feel like I have a
feeling you'll be able to explain it in a way
that gets me excited.
Speaker 1 (01:53):
So you reckon, I think. So. I know.
Speaker 3 (01:55):
A couple of weeks ago, we were talking about this
and we decided to do a part be because there's
a lot of information that goes into this. We were
talking about a few things that sparked my interests and
seemed super important to chat about.
Speaker 1 (02:07):
It did, and it's one of those things where I
was like, Okay, well I don't want to overwhelm people
too much, but also we'll get into it. But there's
like two different ownership structures that we wanted to talk about.
So there was like personal ownership structures, so the way
that you can set up your own personal ownership, and
then the ownership structures that exist inside the assets that
(02:29):
you purchase and those aren't really changeable. It's not like
you can go, oh well with an ETF, I want
the ownership structure to be different. No, no, no, that's just
how an ETF functions. Whereas with your trusts or your
sole trader or your individual shareholdings, like that's all your
choice and you can hold it however you want. Whereas
this is more what you need to consider when buying
(02:51):
shares and what that actually looks like. And I feel
like our community has said a number of times things like,
oh well, if it's not Chess sponsored, you shouldn't be
buying it, and I don't necessarily agree with that, So
we want to, I guess, break down all of those
things that I feel can be really overwhelming at the
start of an investment journey where you're like, hold on,
I was just going to buy an ETF. Well do
you mean to have to think about chess ownership structure
(03:13):
or what's this or what's that. That's what this episode
is about to hopefully give you a bit more independence,
but also I guess confidence to go no, no, no,
like I am where I am and I'm starting here
and that's okay, sure, okay, and all of those terms
and everything. We will discuss a little bit later in
the episode, but yes, we were speaking about this a
couple of weeks ago. Basically the different structures we could
set up personally to own shares, and you promise that
(03:35):
you'd give us a part B and explain the different
ownership structures that shares, ETFs.
Speaker 3 (03:40):
And managed funds use so we can understand them better.
So I'm ready. Let's go all right, let's recap though,
and strip it right back to the start fee. What
exactly is a shit and why should I buy one?
Speaker 2 (03:51):
That is?
Speaker 3 (03:52):
Really?
Speaker 1 (03:52):
Really the start?
Speaker 2 (03:53):
Hey?
Speaker 1 (03:53):
I really like it. So shares also known as stocks
or equities, same stuff. People just call it different things.
Shares is a more of an Australian term, stocks is
a more American term. Equities is more of a finance
bro term. If people are like, oh, yeah, I've been
buying equities, Sit down, sir, you just bought a share.
But essentially all of those things represent ownership in a company.
(04:15):
So when you own a share, you're essentially becoming a
teeny tiny part owner of that company. My favorite way
of looking at it is kind of like a pie chart,
and you took a really tiny sliver of the pie
and now it's your slither of the pie. And what
that does is it actually entitles you to any of
the growth and profit of that company because you're a
little baby shareholder, like you're the owner of the company.
(04:36):
So why should you care about that? Well, owning shares
can potentially give you a chance to grow your money
as the company's value increases over time, and hopefully that
company is doing so well that they're paying dividends. A
dividend is a profit that is distributed to the shareholders
of a company, and you just reinvest that money. Compounding
(04:57):
interest is what that is called. And over time, money
that your money has made starts making more money and
that becomes a really attractive beck.
Speaker 3 (05:04):
Wow, that's just a snowball effect. Yeah, that's investing to
a t god it Okay, okay, okay, So now let's
talk about ownership. You mentioned off air that it's simple
and there are two ways to own shares directly and indirectly.
Speaker 1 (05:16):
I did. I also mentioned it on air, but like
off air, absolutely, I've been ranting about this off air,
like there is definitely a difference, and from my perspective,
you're on the money, babe. But simply put, direct ownership
is when you buy shares in individual companies, while indirect
ownership often involves investing in funds that own the shares
for you gossip. That's kind of like the difference between
(05:39):
a direct share, like going I always use NAB. I
don't know why, let's change it. You're going to buy
a Combank share individually and Bechsaed is the owner, whereas
you might go and buy an ETF or a managed
fund that holds Combank. Combank doesn't know that Beck is
the owner. What Combank knows is that ETF or that
fund you've put your money into, they own a significant
(06:01):
portion of that share. And that's how it's broken down.
It's just an ownership structure. And as we'll get into it,
we'll talk about I guess the pros and cons, but
they are kind of much of a muchness in this
day and age, like in theory. I do get that
I do want to know more about the pros and cons,
But why should I choose direct ownership? Okay, so I
guess to summarize it, pros and cons are good. Direct
(06:24):
ownership means that you actually get to choose the companies
that you get to invest in well. Indirect ownership offers
more diversification, being able to spread your investment across multiple
companies so you can diversify your risk. Direct ownership, as
I said, it kind of puts you more in the
controls seat. You get to choose which companies align with
your personal values and goals. Plus, if those companies perform well,
(06:46):
your returns can actually be quite rewarding.
Speaker 3 (06:49):
Okay, and sorry if this is a really silly question,
but probably not.
Speaker 1 (06:54):
This is She's on the money. No such things, dumb questions,
sit down on, Thank.
Speaker 3 (06:58):
You very much, Victoria Albert. I want to know why
doesn't everyone just do that?
Speaker 1 (07:01):
Why do you just do that?
Speaker 3 (07:02):
Why do you just do that?
Speaker 1 (07:03):
Sounds good right because you're like, especially the way I
just explained it, I'm like, you've got so much control,
you could make money. Beck.
Speaker 3 (07:10):
Usually cool.
Speaker 1 (07:11):
Why doesn't everyone just exactly? Because there's actually a number
of downsides we need to consider as well. So with
great power comes great responsibility, Beck. So they say direct ownership,
it does come with higher risks because your returns are
directly tied to the performance of individual companies. It also
requires a whole heap more research and monitoring. To make
(07:33):
sure that you are as an investor making informed and
smart financial decisions. That kind of like onus, and the
responsibility is far more on you.
Speaker 3 (07:42):
Ah, Okay, I got you. I got you. So I
mean indirect shares have less responsibility.
Speaker 1 (07:49):
I mean, we could absolutely say it that way. That's
how I personally feel about it. Indirect ownership, so things
like managed funds or ETF they offer you far more diverseification.
So essentially what you're doing is when you invest in
a managed fund or in ETF, similar concepts. They're not identical.
We'll get into that, but essentially what you're doing is
(08:10):
investing in a basket of companies instead of just one
direct company, which reduces the impact of you know, if
one company isn't doing so well and you just went
invested in that one, like you're going to feel all
the losses, whereas if that one was one of two
hundred beck it's a lot more consistent, it's a lot
more level. You're getting more consistent returns. And to me
as somebody who likes a more indirect approach to investing,
(08:33):
because I think I've mentioned it before on the podcast,
I do own ETFs, right, and I would argue that
I don't want to say like one of the best investors.
That's not what I mean at all. But like I'm
very educated in this space. I used to do wholesale
direct investing for ultra high netwalth clients. Well, I know
how to do that. I don't want to do it.
It's so much responsibility. Beck I love an ETF like
(08:54):
it works for me and my personal situation because as
much as I adore investing, don't get me wrong, don't
tell anyone, but I do like to have a little
bit of a punt on the side. I do like
finding a share that makes sense to me and reading
annual reports and investing. But that's such a small part
of my investment portfolio because to me, that's fun. And
if we look at the statistics, we know that index
(09:16):
funds and edfs outperform investors who are trying to chase return.
So like me chasing return and picking my individual stocks,
it's not going to put me in a better position
long term, so gotcha. Essentially, it reduces the impact if
one of the companies that you pick doesn't perform well,
and professional fund managers they essentially handle all of that
(09:36):
for you. So say a company isn't performing that well
in your ETF and it's one of two hundred, they
might go, We're going to bullet it because they go
and do all the research and they look into it
and go, you know what, We're going to bullet that
bank and replace it with this other one. It means
that there's a more hands off approach and you kind
of have some professionals in the background. Okay.
Speaker 3 (09:55):
Also, I just realized how different we are as people.
When you said punt. I was immediately like, slap at
the pokeys.
Speaker 1 (10:02):
You know what, that's like what I meant. That's kind
of what I meant. But I do it on the
aox because sports that are not getting my money. In fact,
every time one of their ads comes up, which I
don't know why it does on my TikTok, I'm like,
get off my feet.
Speaker 3 (10:15):
Okay, interesting feat. I respect it. Now let's do a
quick recap. What is an ETF for any managed fund
and are they harder to buy than shares?
Speaker 1 (10:24):
Yeah, okay, that's a good question. Because I keep talking
about atfs and managed funds, we definitely should dive into it.
So a managed fund is also known as like mutual
funds or like a unit trust. These are investment vehicles
in which a fund manager they essentially take all your money,
pull it together from multiple different investors, and allocate those
funds to a diverse range of assets. These could include shares, bonds,
(10:48):
other securities that they want to hold. Managed funds are
typically overseen by what they call a professional funds manager,
so that one usually white dude, Like there are female
fund maashes that aren't many of them. This is obviously
something that the average investor might not do. You might
just go, oh, this one performs really well, Like you
might go to a particular managed fund and go, I
(11:10):
want to know more about it, but you just look
at the investments. I go and look at the investments,
and then I go look at the fund manager and go,
who is he? Where has he worked before? What are
his values? What are his morals? What's his tenure look like?
Has he been working with this particular company for a year?
Is he new? Has he been there for ten years?
I'm honestly, I can't be trusted, so I like to
(11:30):
do that. But essentially, this usual dude actively manages investment
decisions on behalf of the investors. So Becky you don't
have to make that decision because they're going to do
it for you. Sure, and the aim is to achieve
that fund's objectives. So that fund might have different objectives.
So a fund might have the objective to meet the
(11:53):
industry benchmark, So they might go, look, this fund is
just investing in the top two hundred different shares on
the ASA, and our plan is actually just to stay
on track with what the market does. Great, no worries.
There are funds out there that have the aim of
beating the benchmark. There are funds out there that have
the aim of doing lots of different things. Make sure
(12:14):
you know that aim before you get into a fund,
because it might not align with your value. Sure, if
you're someone who's like, you know what, I want a
really low touch ETFU managed fund, I'm just going to
pick one that has the top two hundred. Make sure
that the two hundred that they're picking are trying to
meet the benchmark, not exceed it, because that would be
a different risk profile. Again, because obviously if they're trying
(12:37):
to be way more aggressive, like that's going to be
a different situation than just like, oh, I just want
to track the average of the average so ETF's on
the other hand, they're a type of fund that tracks
the performance of a specific market index or sector. So
I'll give you an example, and ETF might track the
SMP five hundred, which is essentially the top five hundred
companies in America. I've heard about this one. Yeah, that's
(12:58):
really standard. Often when you're like watching the news, so
like you know, like the little scrolling bar at the
bottom of the news, the SMP will usually be reported there,
and a lot of people will be like, I don't
know what that means, And it might be like a
little green arrow going up or a little red arrow
going down, or the yellow bar that's telling you if
the SMP five hundred went up that time or down,
or if it just stayed on track. So they might
(13:20):
track the s and P five hundred, or they might
track like a technology sector and only invest in tech companies.
Just like managed funds ETFs, they pull all of your investors'
money together into one big bucket and they invest in
a diversified basket of assets. However, instead of being managed actively,
so there's no one like Grampooba who's like making decisions
(13:41):
every day making sure everything's tracking ETFs are usually passively managed,
and their aim is to replicate the performance of their
underlying index or sector. So like if it's the technology
sector that I mentioned just before, they just go, oh, well, Beck,
we've put together this list of twenty tech com The
plan is to just get an average return of what
(14:02):
the tech industry returns. You're okay, no worries. That makes sense. No,
they're not harder to buy. That was your question before. Yes,
they're not harder. They're not more complex. In fact, they
are identical to buying a share, Beck. They are listed
in exactly the same way on the AX. You buy
them on a share trading platform, exactly the same way
(14:23):
you would buy an individual share. There's nothing more complex
about the purchase of them.
Speaker 3 (14:27):
Okay, that's good to know.
Speaker 1 (14:29):
What you will find though, while I'm on this topic,
is that a managed funds fees are usually higher than
an ETF because managed funds are actively managed. Sure for
you need to pay for that active management, and ETF
is usually lower fees because there's more of a passive approach.
Does that make sense?
Speaker 3 (14:46):
That totally makes sense.
Speaker 1 (14:47):
So managed funds usually a bit more expensive, usually a
bit more aggressive, usually trying to like beat a benchmark.
ETF's usually a basket of the top performing shares in Australia,
passively managed cheaper to purchase. Both are purchased on the
share trading platform of your choice, listed in exactly the
same way as a share would be cool. Does that
(15:07):
make sense.
Speaker 3 (15:08):
Yeah, I'm really shocked actually that I comprehended all of that.
Oh my god, I did say, thank you very much.
That was fantastic. Now, as we've been talking, I've been
writing down little bits and pieces, so I'm hearing terms
like hin SRN.
Speaker 1 (15:21):
Ches's sexy. It's not the game, it's not the game
the game. Do you know how to play chess? Yeah?
Speaker 3 (15:26):
Oh I love chess.
Speaker 1 (15:28):
I'm not smart enough for chess. I only know how
to do chess through the share market.
Speaker 2 (15:32):
Huh.
Speaker 3 (15:32):
Well, you know, I think that's just as important.
Speaker 1 (15:34):
I would say, maybe more important, Probably the more important,
unless you're like a competitive chess and you make lots
of money. Drew.
Speaker 3 (15:41):
I'm fortunately I'm not at that level yet, but.
Speaker 1 (15:43):
I never will be. Don't worry.
Speaker 3 (15:45):
But no, I do think I need a little bit
of time to break it down. Let's go on a
really quick break and when we come back. We'll discuss
it all.
Speaker 1 (15:51):
I'm excited.
Speaker 3 (15:51):
Let's go cool, we have back fee.
Speaker 1 (15:58):
I'm excited about this.
Speaker 3 (15:59):
We just knocked out the quick game of chess.
Speaker 1 (16:01):
Definitely did not it definitely did not say such thing
as a quick game of chess.
Speaker 3 (16:05):
Actually, probably not. That's probably never exist.
Speaker 1 (16:08):
I reckon it does exist if it was like a
really smart chess person playing against me, because they just
go bam bam bam, Victoria, you're out.
Speaker 3 (16:15):
Yes, okay, I.
Speaker 1 (16:17):
Thought that chess was a like reflection of intelligence as well.
Speaker 3 (16:22):
Yeah me too.
Speaker 1 (16:22):
I'd always be like, oh, if you can play chess,
you must be real smart. Yeah, and I never could
so yeah, I could always felt really something self conscious
about that.
Speaker 3 (16:31):
Oh no, it's not the case of chess. Yeah, absolutely, Yeah.
Speaker 1 (16:36):
Why you're drinks at the bar, you bring the chest
out perfect.
Speaker 3 (16:39):
Now, I know exactly what I said before the break
was that we're going to go into a few different terms.
But I'm curious. I know that you were talking about
how like when you're watching the news, you see that
little bar at the bottom, and I always wanted to
know what the all odds are.
Speaker 1 (16:54):
Yeah, okay, that is a good one. It's very similar
to the SMP so all odds if you want to
look it up on the ASX, which is the Australian
Stock Exchange, its code is x AO and so essentially
the XAO. It tracks the top or the largest five
hundred companies in Australia that are listed on the AX
(17:16):
according to their market capitalization, so basically how big they are,
and that will change over time, like if a company
decreases in value, they might drop off the All odds
and another company that's worth more comes on, So essentially
the top five hundred largest companies in Australia. It's commonly
referred to as the All ords because it's actually considered
the benchmark index for gauging the performance of the broader
(17:40):
Australian market. So the All Odds was originally calculated in
I think it was nineteen eighty with a starting level
of five hundred and represents close to ninety percent of
the AX, so it's not like a little bit of
the ASEX, it's a lot of the ASX and it's
essentially a good way of quickly checking in and seeing
(18:01):
how's the Australian market doing. If the all odds are
down right, it means that ninety percent of the ASX
is on its way down. There must be something going
on in the economy that is, you know, pushing it down.
If the all odds is up, it means the economy
is doing really well. So it's kind of like that
one number that's like a really good sense check or
(18:21):
a pulse check to see what's our market doing. Is
it okay? And it's a good idea to track this
if you're an investor, not because you're going to invest
in it, but because you want to have your finger
on the pulse. And it can be really jarring. Right
as a baby investor you've just started, You're like, oh,
my gosh, my whole portfolio is completely off. Do you
(18:42):
know what makes you feel a lot better? Looking at
the all odds and saying, ah, the broader economy is
a little bit off. Sure, this makes sense. So this
is one of those things. I'm in the middle of
writing my investing master class, and this is something that
you know, I asked the community a little while ago,
just in the Facebook group, because I haven't announced it
publicly that I'm doing that. Listening to this on the pod,
You're welcome, But we're writing an investing mask glass, and
(19:04):
I said, what do you want to know? Like, obviously
I can write everything that I know about the stock
market and what that actually looks like, how to do it?
What to start? And someone's question, I can't remember who
it was, so do apologize? It was my favorite question?
Yet She's like, what does it actually mean to do
your research? So I go back, you know, before investing,
do your research? What the heck can is invest in research?
(19:27):
How do I do that?
Speaker 3 (19:28):
Great question?
Speaker 1 (19:29):
So I've made a whole unit on how to quote
do your research and what to look at and what
can make you feel a bit more comfortable because investing
is one thing. Yes, I can show you how to
do your research to check if a share or a
ETF is a good investment for you personally and whether
you would choose it or not with the right you know,
technology behind it. Sure, but also like what about a
(19:49):
bit of a sense check? Beck, Like, what if you're
a bit stressed, how do I do a bit of
research to make sure that I can just still feel
a little bit comfy in the market? The all odds
is something that I would look at first to go
what's the broader economy doing If that's off, what makes
sense that your shares are off? Beck because the whole
economy is a bit messed up, right now, gotcha? That
(20:10):
might make you feel a bit more comfortable. But yeah,
the all odds is actually really important, and I'm glad
you brought it up.
Speaker 3 (20:15):
Oh great, I've shocked that I finally figured out what
that was, because I feel like it's something that we
joke about in like high school. The all odds are.
Speaker 1 (20:22):
You don't know what it means, but essentially TLDR it's
the top five hundred biggest companies in Australia and it's
a benchmark to see are they doing well? Are they
not doing well? It's why you'll see the all odds.
The numbers aren't massive when they move right. It's always
like the all lords are ze point one percent, right,
like you never hear twelve percent. Yeah, because that's five
(20:43):
hundred companies and the average is going to have to
be pretty significant to have a bigger than a you know,
a one or two percent jump, gotcha. But it'll always
be small amounts and it's just like slow fluctuations. And
then if you look at it over the broader, like
you know, scale of time, because we say on the
pod lame that it's my favorite saying when in doubt,
(21:03):
zoom out, like look at the bigger picture back. You
might see that the all lords over time are just
slowly tracking upwards. That's reflective of a really healthy market.
Or you might see it tracking downwards, like going into COVID,
we saw the all lords track downwards. Going into any
type of recession, we see it track downwards, and you
can see how fast or slow that is and go, oh,
(21:24):
that's happening pretty quickly or that's actually really slow. It's
interesting once you know what it is. Yeah, Okay, I
won't go on and on about it because I totally
go it.
Speaker 3 (21:32):
And I could totally listen all day, but we do
full of it an episode to get to all, right,
what on Earth is h SRN and chess? Are these
online games?
Speaker 1 (21:48):
Online game? Let's do one at a time. Can I
break it up? Because I'm not gonna answer all three
at one time because I think that would be irresponsible.
And while my job often is to completely overwhelm you,
it's funny someone slid into my DMS and the like utoria,
this is so embarrassing, But sometimes I have to listen
to your episodes three times to get them. It's not
embarrassing embarrassing, that's smart. Yeah, it is like do you
(22:10):
know how much research I often do on these episodes
tojam pack them full of information that hopefully you get. Yes,
I can't expect you to walk away. It's like going
to a lecture. Did you listen?
Speaker 3 (22:20):
Probably not watch it three, four, five, six, seven times?
Speaker 1 (22:23):
Yeah, and on like double speed, Yeah, and not spend
that whole time doing it. But it is not embarrassing
to have to go back and listen to it again.
In fact, hard to watch a Barbie movie three times
before I got everything in it, Yeah, exactly, So like
the same should be true for my podcast because like
they're basically on part with a Barbie movie. Right, Oh yeah,
oh absolutely. All right, So let's start with chess, okay,
(22:45):
because it sounds the most like a game, and I
feel like it's most spoken about in our community as well.
So put simply, chess is clearing house electronic subregistered system,
oh sexy. So essentially that means that the AX is
just keeping a list of who owns what chess. That's
what chess means. Okay, So it's the clearing house electronic
(23:09):
subregister system. It's just registering everybody who owns shares in
the ASEX. So if you go and purchase a share
on the ASEX, they want to keep track of everybody.
That's what CHESS does. So if your shares are quote
Chess sponsored, it means that when you buy or sell
shares on the ASEX, it has a record of you
owning the shares directly or not. And this is the
(23:30):
main way in Australia that people buy and sell shares
because they go to a broker, They might go to
an online platform purchase a share and then they will
get a whole heave of paperwork, usually from computer share
that says you now own this, here's your chest number,
here's this, here's that, and it's just tracking that you're
the actual underlying owner of that asset. Just be aware
(23:52):
when it comes to choosing a broker for buying and
selling these because some brokers are and some brokers aren't
Chess sponsored. Don't mean they're worse or different. It's just
something that you need to understand and we'll obviously get
into those different arrangements soon. Okay, So I'm not going
to go on and on about it now because I
know I've got a round coming soon.
Speaker 3 (24:11):
Yeah, you can feel it bubbling up. Okay, So this
is if you're I'm assuming the owner of the share.
But what if you're in an ETF or a managed fund?
Will used to be chess sponsored? Does that?
Speaker 1 (24:25):
So that's where remember at the start of the episode,
I said there's two ways to hold shares. There's indirect
and direct. Yes, So a chess sponsor, if it is
in your name, that would be direct.
Speaker 3 (24:34):
Gotcha.
Speaker 1 (24:34):
ETFs and managed funds are essentially indirect, and that means
you are absolutely correct, Beck. If your shares are chess
ASX sponsored, it means that you personally own them directly,
so like the name on the certificate would say becksayed,
rather than someone else holding them on your behalf like
an ETF or a managed fund in the pool that
we were talking about before, So you would receive dividends
(24:57):
directly if you're the underlying owner of them. So that's
essentially the profit the company pays to its owners, i e.
Speaker 2 (25:03):
You and you.
Speaker 1 (25:04):
Actually, if you're the underlying direct owner, you have voting rights.
Not many people care about their voting rights, and let's
be honest, if you only own one share your voting rights,
they're not going to have the biggest influence. But that's okay.
Some people really really want to have them. Is it
bad that you don't own them directly? Is the next question.
I think people are probably thinking no, not necessarily. Some
(25:27):
people are honestly, wildly passionate about this. You might see
it all over the internet if you are someone like
me who is this embarrassing. Might be troll's reddit forums
about like what shares are being bought and sold, in
people's opinions on different ETFs, like I'm gonna need to
know all of that information, right, But a lot of
people will be like, it's terrible because it's not chess
(25:47):
sponsored and you're not the direct owner of it. Rare anyway,
I could not care less. But some people, as I said,
are wildly passionate about it. But as someone who does
arguably know the industry very well and invests in ETFs
and managed funds directly, it doesn't worry me because all
my investments are still safe and are still secure, and
essentially what my shares in my ETF and managed funds
(26:10):
are operating under is what's called a custodian model. So
that all sounds very complex, you could say, but a
custodian model essentially means that someone else is currently holding
that share certificate on my behalf. It's all above board
if either of those companies, like let's say the shared
trading platform that I have picked, operates under a custodian model,
(26:33):
which means that the etf I board or even sometimes
the share that I buy isn't going to be my
direct name. It's under this custodian model. You might go,
but what if they go bankrupt, Victoria, what if they
lose all their money?
Speaker 3 (26:44):
True?
Speaker 1 (26:45):
Are you going to lose your shares back?
Speaker 3 (26:46):
It's a good question.
Speaker 1 (26:47):
You're not, because it's held under a custodian model, which
means that the owners of that company that you're investing with,
they don't actually have access to that. They can't just
transfer it to their name. Custodian means they're the custodians
of it, not the the lying owner. The share owners are,
and essentially the owner of the share. It isn't as
clear as if it was responsored, but there still is
(27:08):
a direct line of working that out, and that company
can't just yeed off with your shares, Like, you're not
going to lose out in that circumstance. The only way
you would lose out, and you know there might be
an issue with your share is if your share actually
loses value, but it wouldn't have anything to do with
your broker. However, in that custodian model, your shares are
actually held within a trust. So remember in the first
(27:30):
episode we were talking about trusts and direct ownership. Companies
can set up trusts to hold their client's assets. So
my shares are currently being held in a trust by
my custodian, which is my broker, and they're not going
to go missing if that company goes bankrupt or they
shut down. So you're okay. And I think a lot
of people get really worried about that because they're like, oh,
(27:51):
but someone's going to, you know, take off with my
shares because they've got my share certificate and I'm like,
not so quick, Like, that's not how it works.
Speaker 3 (27:58):
Okay, how it works.
Speaker 1 (28:00):
So you're safer than you might think you are.
Speaker 3 (28:02):
That's good to know. It's always good to be safer
than you think.
Speaker 1 (28:05):
Exactly.
Speaker 3 (28:06):
What about HIN and SRN, are they equally.
Speaker 1 (28:10):
Like I'm overloading this episode, but like, I feel like
this all needs to go in the same episode, so
I do apologize, but no, thankfully. So historically shareholders, you
actually would have received like a share certificate, like a
legit one in the mail to prove that you are
the underlying owner of that asset. You can still receive
those if you really want to. I get mine by email.
(28:30):
Shares are now automatically held digitally on what's called a
hi N if you go with a stockbroker, So a HIN.
It's actually very simple. It means hold up identification number. Again.
It's just a number that tracks who owns what and
when and where, which is essentially like an ID card
or an ID number for your shares. It's not super complex.
(28:52):
You don't need to be super across it. Just know
that each time you would buy, you would be, you know,
given a HIN. It's essentially just to track your shares
so the ASEX knows who owns what and when and where.
M mmm, beck. You also asked about an SRN, So
you're gonna have an SRN if you buy shares with
the registry, So youon know how I said before, you
get a HINT if you go with a stockbroker. If
(29:14):
you go directly with the registry, you're actually gonna get
an SRN, which stands for Security Reference number. Again just
another ID number, okay, which is unique to each company's
shares that you own. So both of which are honestly
just acronyms for numbers you're gonna get when you register
your investments. So no matter which way your shares are held,
(29:35):
you remain ultimately the beneficial owner even if the stockbroker
or the registry goes bankrupt. Oh so you're okay, you
safe safe. These are tracking numbers, So if you get
them in the mail, or you get them in your emails,
save them somewhere important, in a folder in your emails,
or like my favorite, I don't care paper in my house,
I'm gonna lose it. But you know what if I
(29:57):
don't lose pieces of paper in my house, I I
have been on the phone and I flip them over
and I draw all over us lists and then I
rip them up like it is not a good idea.
So I actually take photos of all of mine and
just save them in an album in my phone, or
I email them to myself. But definitely keep track of
these numbers because ultimately they are important, but you're not
going to use them every day when you're doing share trading.
Speaker 3 (30:19):
Great idea, d I don't know if you do the
same thing as I take photos. I send it to
myself and I put like a trillion different keywords in
the email.
Speaker 1 (30:27):
I'm like, hi, n identification number for XYZ share share trading,
stop broking investment account, like exactly, because what if I
forget what to google email?
Speaker 3 (30:39):
What future are me going to think about?
Speaker 1 (30:41):
And I can't trust future me. I have proven to
myself I can't be trusted. I agree.
Speaker 3 (30:46):
Okay, so I just want to quickly wrap my head
around this all because it is a lot.
Speaker 1 (30:50):
It is a lot. I'm sorry, but I okay, you've
gotten across it really quickly.
Speaker 3 (30:54):
Thank you so much. I mean, there might be gaps
in my knowledge.
Speaker 1 (30:57):
But so the episode was so that we listen to it.
Speaker 3 (31:01):
To us exactly, if I buy shares directly in my
own name, my own name will be listed down on
the share register. Yeah, I'll be able to buy and
sell individual shares whenever I want. My dividends will be
paid directly to me, and I have voting rights.
Speaker 1 (31:16):
WHOA Yes, exactly. You're the money.
Speaker 3 (31:19):
Thank you so much.
Speaker 1 (31:20):
You're on the money.
Speaker 3 (31:21):
That is so sick. Okay, So while I'm at it,
when you indirectly invest, yes, the name on the share
register is the ETF or the managed funds company. Yes,
not my name, not your name. But they hold the
assets on my behalf and manage what the ETF or
managed fund is made up of. So I don't have
to worry about buying and selling, yes, but I do.
(31:41):
I still get my dividends though. What happens if the
share makes a profit. Oh that's a good question. I
like that you're thinking about this thing now. It makes
me so proud. I'm like, oh, so you're just worried
about where a dividends is going to go?
Speaker 1 (31:51):
Thank you something the profit still goes to you, do
not worry, okay, So it will just be filtered directly
through your et or managed fund. It does get distributed
in a bit of a different way, but it's still
there for you. You are not missing out. Often when it
comes back in the fees that you've agreed to pay
for your ETF or managed fund to get taken out
(32:13):
of that amount and then it gets distributed to you
or through your etfor managed fund. You might have picked
what's called a dividend reinvestment plan, which means they never
give you the cash. They actually just reinvest it back
into the same ETF for you. So it's all automated,
which can be really helpful because if you're planning to
invest over the long term and you own a share,
(32:34):
you know, and let's pretend it paid you ten dollars
this year, you don't want that ten dollars this year.
You want it reinvested into the share market so that
it can grow over time and then when you reach
retirement you can make use of it. But that's what
I mean when I say the money that your money
makes makes money is because the money that your money
made gets reinvested, and then that money makes money. So
that ten dollars that gets reinvested, then you know, might
(32:57):
make a dollar next year, and then that dollar makes
money and it just compounds from there. Okay, So it
doesn't necessarily mean that you're missing out, but it might
get filtered through a different way, but those profits are
still yours. And like, for example, if Combank says that
they're paying a dividend to investors, that is still going
to come to you. Sure you don't miss out?
Speaker 3 (33:16):
Good to know, very good to know.
Speaker 1 (33:18):
Don't miss out.
Speaker 3 (33:19):
Don't miss out.
Speaker 1 (33:20):
And arguably the most important thing about investing is making money.
So like, I'm not going to let you miss out.
Oh joking, I'd be like, don't do that. That's terrible.
You won't get paid. That would be silly, that would
be so dumb.
Speaker 3 (33:31):
I trust that you're not done with teaching, but I
probably amn you're done.
Speaker 1 (33:35):
Okay, don't worry.
Speaker 3 (33:37):
But before we wrap up, how do we pick which
option works best for us?
Speaker 1 (33:40):
Okay? So this is a good question, but also a
really personal question because like, I can't tell you what's
going to work best for you. From my perspective, it's
really important to consider your goals and your risk tolerance
and your lifestyle. Like some people might want to be
individual share traders and consistently, you know, rebalance their own
portfolios and manager that way. If your hands on and
(34:02):
you want to pick your own companies, like direct ownership
might actually be your own style, Beck, But if you're
looking for diversification, maybe a little less involvement, maybe a
little less risk. Because when you diversify more, Beck, you're
lowering your risk. So the more diversification you have, the
more risk you have. Maybe indirect ownership is a better
fit because you go, well, I can get instant diversification
(34:25):
less involvement if I go and buy a top two
hundred asx ETF, And that might make you really comfortable.
But again, you might be widely passionate about picking your
own shares, or maybe you don't want the top two hundred,
or maybe you just want a bit more control. So
it's really going to depend on who you are and
what you do. And as I've said, you know this
is what I do, but I do both. I'm not
(34:48):
saying that both is right for you. I do both
because let's be honest. Direct share investment for me is
me having a good time in the share market. I
love it, Beck It's so lame, like I love not
my research. I love looking at new companies and what
they are made up of, and what their board looks like,
and what their CEO has done historically and how they've performed.
(35:08):
That is not everybody's cup of tea. Everybody else in
our community, or a lot of people in our community
might turn around and be like, V we hear you,
we see you. We understand the importance of investing. We
know that to create financial freedom, we want to invest.
But I just want to send some money into an
investment every month and not think about it again. Ye,
(35:30):
you're a psychopath. I am not going to be looking
at the annual reports of each and every single company,
because one, I don't comprehend them, but I also just
don't care. That's fair and that's so fair. So I
think that understanding the difference between indirect and direct investing
is going to be a really personal decision. But I
think the crux of this episode is helping you to
(35:52):
understand that when we talk about HIN or SRN or chess,
those things are not as important as a lot of people,
you know, jump up and down about and say, Oh,
it's so important. That's chess sponsors so you have direct control.
I personally don't need direct control. What I want is
to know that if everything goes south, my investment is
(36:14):
going to be safe, irrespective of who was the custodian
of that. And I know I'm safe, so I'm fine.
And I think that a lot of people in our
community wanted to hear that, because you go, well, if
it's not chess sponsored, maybe it's less secure, and that's
not the case at all. So that's where I'm at.
But it's going to be a personal decision, not a
decision that I can make for you, because I don't
(36:35):
know you well enough. I wish I did, so let's
hang out.
Speaker 3 (36:39):
I guess, like, lastly, are there any regulations we need
to be aware of?
Speaker 1 (36:42):
A look at you with your questions, all right, So
owning shares obviously comes with lots of different rules and regulations.
But don't worry. We won't dive right now because I
really want to go home now into the technicalities of them.
But just know that direct ownership, as we've been talking
about it means that you have to stay informed and
you have to actively manage your investments, so like you've
(37:04):
got to be across it. You've got to do all
the reporting. Yourself managed options like a managed fund or
an ETF, they actually handle most of the regulation for you.
So that's kind of an attractive thing. We won't Maybe
I'll do a whole episode one day on regulation, but
it won't be that sexy. Sure, maybe will do it
as a bonus for people who are just like me,
(37:24):
because I know you will not give two flying fruit bats.
I've already yeah, you're like, no, I don't even know
why I asked you the.
Speaker 3 (37:31):
I actually have done now, But to make sure everyone's
on the same page, just give us a really quick
overview of one more over, you're like, really drill in envy?
Speaker 2 (37:41):
All right.
Speaker 1 (37:42):
So, obviously today we have covered the basics of direct
and indirect ownership of shares. We have talked about direct
ownership when it comes to investing directly in shares on
the AX or any stock exchange, to be honest, and
we've talked about indirect ownership through managed funds and ETFs. Obviously,
these are not the only asset classes that exist in
(38:02):
the world. These are just two really good examples of
how these work. I think we need to also remember
there's no such thing as a one size fits all approach,
and as I said before, choose the method that aligns
to your goals and your values, not just what someone
on a Reddit thread said was the most important thing. Honestly,
great advice. Don't take Reddit as gospel.
Speaker 3 (38:23):
I'll have to remember that you done done, I'm done done.
Speaker 1 (38:27):
Oh, I think we deserve some cheeky mickeyde's.
Speaker 3 (38:30):
Let's do it. Let's go.
Speaker 1 (38:31):
We have a good week, guys.
Speaker 4 (38:32):
We love you.
Speaker 3 (38:32):
Bye bye, guys.
Speaker 4 (38:39):
The advice shared on She's on the Money is general
in nature and does not consider your individual circumstances. She's
on the Money exists purely for educational purposes and should
not be relied upon to make an investment or financial decision.
Speaker 1 (38:53):
If you do choose to buy a financial product.
Speaker 4 (38:55):
Read the PDS TMD and obtain appropriate financial.
Speaker 1 (38:58):
Advice tailored towards your knee.
Speaker 4 (39:00):
Victoria Divine and She's on the Money are authorized representatives
of money sherper P T y L t D A
b N three two one six four nine two seven
seven zero eight a F s L four five one
two eight nine
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