I am new to shares and this forum and I am requesting advice.
First off I will give a brief background of myself. I completed an Engineering degree a year ago and have been saving since last March. Due to living away from home conditions I am saving a decent amount of money and want to get the most out of it.
My current account is 11000 + (approxmately saving 1200 per month).
My aim is to continue a medium term savings plan for the next 6-7 years (age 30). At which point I wish to have the option to purchase property.
I figure If I am going to be saving for the next 6-7years I may as well aim to get the best out of it.
Currently my money is accruing interest at around 4.7% throuch a savings account, but I believe I can improve this throuigh shares without a large risk.
Obviously I would prefer the largest return possible, but to begin with, my aim is 6-7% per annum with relatively low risk. I have been reading several books and forums and I believe that I want to focus on growth stocks.
Currently I am deciding between three different brokers;
Comsec, Nabtrade and CMC.
From my understanding (which may not be correct), Comsec provides the most stable platform but has the highest brokerage fees and the lowest interest. Nabtrade is the middleground, I have been reading that there has been some instability with their system, but they offer middleground brokerage and good interest on account. CMC appears to be the cheapest brokerage, relatively good interest on account, some instability but does uses an outside account source.
I plan to purchase shares as I am saving money and may make purchases around 8 times per year, I don't particularly want to sell too often, just grow my shares as my savings comes in each month.
Are there any recommendations with any of these brokers, or because my volume is relatively low it will make little difference?
My overal strategy will be to buy and hold. collecting dividends and hoping for capital gains as well. Dividends are to be reinvested back into the shares (potentially the shares that generated them).
I plan to purchase solely blue chip shares with the majority in some of the big 4 banks. I may investigate the resourse, staples and infrastructure sectors over the next few weeks.
As I am completely new to shares I want to take a 'baby step' approach in terms of risk. Does my strategy make sense for a time time investor or is there another prefered method. (Keep in mind I don't paricularly want to invest in a managed fund, I enjoy my own research and want the sense of accomplishment with managing my own investment).
Do you recommend getting into the sharemarket now, or do you think with my inexperience it is best to research 3-4months in depth on specific companies before begining. I believe my strategy is robust and reliable enough that It may not be a problem to begin now, but some advise is appreciated.
Thanks for taking the time to read my thread and any advice is appreciated.