Democratisation – the action of making something accessible to everyone.
Giving the person with 1 cent the same opportunities as the person with $1m is one of the foundation principles used by the founders of Sharesies to bring their product to the market.
Traditionally, would be ‘wealth-developers’, have been locked out of investing unless they had significant sums to invest. It just wasn’t possible or if it was, it wasn’t cost-efficient. Sharesies pioneered the practice of ‘fractionalisation’ with investing, enabling more people to come to the party with what they had. The result? Over 70,000 Kiwi’s now have a Sharesies account and the average balance is sitting at over $2k each.
It’s been over a year since I caught up with the Sharesies team and a lot has happened since then. Yes, there are more players in this space, with Kernel Wealth, Hatch, and Invest Now to name a few. The good news is that the ‘pie’ of everyday Kiwi’s playing the game is growing.
Focusing on the everyday investor, Sharesies enables those with smaller amounts to invest in not only exchange-traded funds, but now also shares listed on the New Zealand Stock Exchange (NZX). This is massive.
The other thing Sharesies does incredibly well is that it allows an account to be set up for children. From personal experience, I have struggled to teach my kids about investing, but having this tool is a great assist.
If you would like to learn more, check out sharesies.nz
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Where to find Darcy Ungaro:
Ungaro &Co (registered) financial advisers