Investors Update for 22/04/21 - Aware Financial Services Pty Ltd

This is the latest portfolio changes and orders.

It is always pleasing to see that we are already positive (overall gain of $294 based on the $85,000 deposited here) because it’s quite normal that you lose at the beginning due to the costs and buy/sell spreads (i.e. the difference usually goes to the brokers as their way to make some extra money as the on-line fees are quite low at $6).

I have been able to review this system and must say the weaknesses of the above system are:

the table doesn’t tell us the purchase dates – which is critical when considering both dividends and Capital gains tax issues; and
it doesn’t let us know the proportion that each stock represents as part of the total portfolio;
I am still finding out if they have access to the MFUNDS as it’s not as user friendly finding services either;
access to news and information is not included without additional costs.

These weaknesses are the main reasons for using the ANZ (which is actually CMC) but these better features do come at a slightly higher price in brokerage fees of $20 vs $6. However, we will be opening the ANZ investment account (funds are still safely in cash) soon so that we can continue to diversify both the investments and broker risks. Yes, that right, it’s prudent to have more than one broker just in case something were to go wrong with them. It’s a very small probability but a risk nonetheless. Even if the problem is only a matter of liquidity – meaning a broker freezes or delays any withdrawal requests during a volatile or crisis situation?

I will conclude saying that a prudent investor should always have some cash funds available to take advantage of any unexpected events and opportunities that often arise. It’s the primary way that the rich make their wealth grow almost every year.

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