What is a CommSec Share Pack?

For first-time, or even more experienced investors, choosing shares can be challenging, especially if you want to buy a few different companies.

A CommSec Share Pack can help you get started or diversify your existing portfolio.

 

What’s in the pack?

There are four CommSec Share Packs to choose from. Each pack contains shares in six companies picked by the CommSec Investment Management Team.

You can view which companies are in each pack on the CommSec Share Pack product page (you will need to be signed in to CommSec do this)

 

How do I choose the right pack for me?

One of the guiding principles of successful investing is to think about your goals before you begin.

Knowing what you want to use your money for, when you want to access it and how much risk you are comfortable taking should help you to choose investments that suit your needs.

CommSec Share Packs are designed to align with your investing goals:

Capital Growth pack


 

Companies in the growth pack are selected based on the potential for their share prices to grow faster than the broader Australian market, thereby increasing the capital value of your investment. This pack may suit you if you plan to stay invested for a longer time period (say three to five years plus) and are more focused on growing your wealth than earning an immediate income.


 

Income pack


 

Another common reason to invest in shares is to earn money from dividends. Companies in the income pack are selected based on their history of reliably paying dividends with a healthy yield, although their share prices may not grow as fast as other companies.


 

Market Leaders pack


 

As the name might suggest, the balanced Market Leaders pack aims to give you a diversified investment in some of Australia’s best-known blue chip companies. Blue chips, which typically refer to the 50-odd largest companies listed on the ASX, are known for their long-term stability and steady growth.


 

Tax-Effective Income pack


 

This pack contains companies that have a history of reliably paying dividends with the added tax benefit of a high level of franking credits.


 

Of course, it’s important to understand that regardless of which pack you choose, any company’s share price can always fall as well as rise. By investing in shares you are taking the risk that you could lose money.

Additionally, companies are not obliged to pay dividends and can change their dividend policy from one year to the next.

 

How much does a pack cost?

You need a minimum of $4,000 to invest in a pack. There is a maximum limit of $25,000 per pack. Between those two amounts, you simply enter how much you would like to spend at the point of purchase.

The amount you enter will be divided evenly between the six companies. For example, if you want to invest $6,000, CommSec will buy $1,000 worth of shares in each company.

When you buy or sell shares, you also pay a fee to the broker, who places the trade on your behalf. If you buy shares through CommSec without outside of a Share Pack, this fee typically starts from $10.00 to $29.95 per company or will be calculated as a percentage of your trade.

With a CommSec Share Pack, the total brokerage rate for all six companies comes to $66. This works out at $11 per company.

 

Before you buy

To buy a pack, you need to open a CommSec Share Trading Account.

If you are already a CommSec customer, head to the 'Buy Share Pack' page under ‘Trading’.

 

After you buy

Each time you buy shares, you receive what is called a ‘contract note’ from your broker, confirming the purchase. As you are effectively buying six different shares when you buy a CommSec Share Pack, you will receive six separate contract notes.

After you have bought a pack, it then becomes six individual holdings in your portfolio and you will need to manage them as you would any other shares you might own. There will be some initial administrative tasks to take care of – read more about what to do when you first buy shares.

If a company pays dividends, you will receive payments from the companies themselves on the (usually) twice-yearly dates nominated by those companies.

And if or when you decide you want to sell any of the shares purchased through a Share Pack, you will also need to do this individually.

 

 

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Any securities or prices used in the examples given are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not indicative of future performance. This information is not advice and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. For this reason, any individual should, before acting on this information, consider the appropriateness of the information, having regards to the individual's objectives, financial or taxation situation and needs, and, if necessary, seek appropriate professional advice. Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 and a Participant of the ASX Group and Chi-X Australia.

 

Disclaimer

This site is directed and available to and for the benefit of Australian residents only. © Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 ("CommSec") is a wholly owned, but non guaranteed, subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 and both entities are incorporated in Australia with limited liability.

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