The stockmarket is being demystified for Wellington youths by Victoria University commerce students wanting to encourage young people to invest on the NZX.
Although trading shares is often considered the domain of experienced investors or people with large sums to put in, the strong performance of the index and publicity around KiwiSaver schemes placing money in stocks have made the market more attractive to the average New Zealander.
Investment Academy is a series of seminars on investing for beginners, which is the brainchild of Victoria University second year bachelor of commerce student David Rektorys, 25. He previously founded a Business and Investment Club to encourage students to start small businesses.
"Basically the whole idea is a series of investment seminars for education about how to invest your money on the stockmarket because we believe the stockmarket is really underrated in New Zealand and too many people are trying to make money off real estate," Rektorys said. "We think that it is pretty cool to educate young people about dividends and companies that are present in the New Zealand stockmarket. Not too many people think it's cool to invest their money on the stockmarket."
Its first session, on March 11, will run attendees through the basics of how the stockmarket works and the difference between shares as an investment compared to other options.
Later seminars held regularly over the following months will introduce people to the fundamentals of technical analysis, how to read investment indicators and information about forwards, swaps and other derivatives. Experts will be brought in to speak at the seminars.
With interest rates so low, returns on NZX-listed stocks were often more attractive to investors. Accessible listed companies such as Auckland International Airport and Port of Tauranga, which had high profiles and were businesses most people could understand the nature of, had delivered double-digit returns to investors recently.
Craigs Investment Partners was supportive of educating people about investing in the stock market, its head dealer Bryon Burke said, with a regulatory framework in place to protect retail investors.
"We would be very strong proponents of such a thing. We are trying to encourage education across the spectrum with people that are new to the market, including youth and women investors, and all sorts of different market sectors. Education is key. That seems to be what is missing and that's why New Zealand has fallen in love with property, because it's easy and that's what your parents did."