There are no hard and fast rules about the amount you need to start investing. If you’ve covered the basics and have some money you won’t need in the short-term, then now could be the right time.

What are the basics you should have covered before investing?

  •   Your income exceeds your expenses
  •   Your debt is either minimal or working for you
  •   You have a savings buffer of three or more months’ salary
  •   You understand the costs and risks
  •   You understand your goals

Invest enough to enjoy solid returns

You need a minimum of $5,000 to set-up a Rev Invest account because we manage people’s money in a range of portfolios containing well-researched ETFs (exchange traded funds) that level the playing field and make sound investing accessible for more people. 

This is the minimum account balance that makes sense in terms of generating a return with this managed portfolio approach, but there’s no reason not to consider investing more if you have more money available.

Determining your goals and risk tolerance

Be clear about factors like why you’re investing your money, your time frame for achieving returns and when you’ll need to liquidate your investment to reach your goals. 

From there, think about how much risk you’re willing to take.  If you’re saving for a house in the next 5 years and are investing $30,000 with an aim of growing it in that time, you may seek to consider the Springboard portfolio, where downside risk is managed more conservatively, but where the portfolio’s seeking to generate returns better than a bank deposit account. 

If you are seeking growth from your investments, with a longer time frame for when you may require access to those funds, a growth portfolio may be right for you. 

When you invest in a growth portfolio you accept more volatility in your investments, as funds are invested for better potential returns from shares and other riskier assets. These are only examples, but they demonstrate how goals, risk tolerance and timeframes work together to guide the best investment options for your circumstances. 

The importance of quality investments and diversification

Earlier, we mentioned that ETFs (exchange traded funds) level the playing field and make investing more accessible, because they provide access to a broader range of investments and keep costs low. But it’s important to note that not all ETFs are equal and that simply investing in ETF’s doesn’t ensure diversification, one of the most important principals of sound investing. 

Diversification is where a mix of different assets are held to help to reduce some specific investment risks. It means all your eggs aren’t in one basket and helps shelter your portfolio against inevitable volatility in investment markets. 

The ETFs selected for Rev Invest portfolios are carefully researched and selected based on the expertise of the FMD Financial Investment Committee, who have a 20-year proven record of managing diversified portfolios successfully. 

They ensure each of the five tailored portfolios offered by Rev Invest are comprised of high quality, diversified ETF’s offered by some of the world’s leading investment managers. The professional portfolio construction overlay implemented by Rev Invest then constructs the diversified portfolios to suit a range of different investor risk profiles.

What are you waiting for?

So, there it is. Once you’ve considered the investment basics and thought about your goals and willingness to take on investment risk, when you’ll need access to your money, and which diversified investment portfolio is right for you; you’ll know how much to invest and be ready to get started..

How to get started

Rev Invest is the perfect way to start investing in ETFs, with your choice of in five tailored managed portfolios to help you get ahead faster. 

Set up your account in minutes and start investing with as little as $5000 today!