To start investing in Australia, sort out three things before you buy anything: money you will not need soon, a goal with a date on it, and a sense of how big a fall you could sit through. Then choose what to buy, such as shares, an ETF or a managed fund, and where to buy it: a broker, an app or the fund itself.
ASIC’s Moneysmart describes shares as a long-term investment, at least five years. Money you will need sooner than that usually belongs somewhere steadier.
inaam is one way to start: a registered managed fund in an app, picked for impact across five themes you customise. The subscription is $10 a month and the minimum to invest in the fund is $100. The fund is ASIC registered, ARSN 691 614 132.
Most first-time investors do the steps out of order. They pick an app, then a share, and only later ask what the money was for. The order below follows Moneysmart, ASIC’s consumer site: plan, choose, spread it out, then keep track. It starts before you buy anything.
before you invest a dollar
Moneysmart’s first step is a look at your own finances. Its page on how to develop an investing plan says to write down what you own and what you owe, then what comes in and what goes out, so you can see how much you can put toward investing regularly.
An emergency fund comes before any of it. Moneysmart’s target is enough to cover three months of expenses, kept in a separate savings account so you are not tempted to dip into it. Money you might need at short notice does not belong in shares, and this is the money that lets you leave your investments alone when something goes wrong.
give the money a job and a date
Write each goal down with how much you will need and when. Moneysmart then sorts goals into three time frames:
- Short term: 0 to 2 years.
- Medium term: 3 to 5 years.
- Long term: 5 years or more.
The time frame does a lot of the choosing for you. For short-term goals Moneysmart points to lower-risk options such as a savings account, a term deposit or government bonds, because they are less likely to fall in value and you can get to the money. For longer-term goals it says investments such as shares and property can be better, because you have time to ride out short-term falls.
how much of a fall could you sit through
As a general rule, Moneysmart says, the higher the expected return on an investment, the higher the risk. It is blunt about the alternative: the combination of high returns and low risk does not exist.
Its test for your own tolerance is one question. How would you feel if you woke up tomorrow and found your investments had dropped 20%? If that would make you worry and withdraw your money, it says, high-risk investments are not for you.
Share prices do move like that. Moneysmart’s page on share market volatility describes short-term ups and downs as something that happens often, and warns that selling during a fall can lock in a loss.
what you can invest in
Moneysmart sorts investments into two groups. Defensive investments aim to protect the money invested, pay income, or both. Growth investments aim to increase in value over the long term. Its overview of how to choose your investments sets out the main types:
| what it is | risk and time frame | |
|---|---|---|
| cash | Bank accounts, high interest savings accounts and term deposits. | Very low risk of losing money, though rising prices can reduce what it buys. Often used for goals within 3 years. |
| bonds | You lend money to a government or a company for a set period and usually receive interest. | Depends on the borrower. Bond prices can fall when interest rates rise. |
| property | Residential or commercial property, which may pay rent. | You can lose money if prices fall or costs exceed the rent. Generally suited to goals at least 5 years away. |
| shares | A small part of a company. You may receive dividends, which are not guaranteed. | Prices can fall quickly. Long term, at least 5 years. |
Before buying anything, Moneysmart suggests five questions. How does it work, and how could you make or lose money? How do you sell or withdraw, and how long could that take? What will you pay to buy, hold and sell it? Does it suit your goals? How much could you lose, and could you afford that?
the ways to invest in shares
A beginner in Australia has four common ways to own shares, and most people already have a fifth through their super.
| how it works | what you pay, and what to check | |
|---|---|---|
| shares, bought directly | You open an account with a broker and choose each company yourself. | Brokerage on each trade. The shares are generally held in your name, and the research on each company is yours to do. |
| an ETF | A managed fund that trades on a stock exchange. One trade buys a basket of investments. | Brokerage on each trade, and the fund’s management fee. Most ETFs in Australia are passive and follow an index. |
| a managed fund | Your money is pooled with other investors’ and a fund manager invests it. You own a stake in the fund. | The fund’s fees, which can include management and performance fees. You do not own the underlying investments directly. Funds open to everyday investors publish a PDS and a TMD. |
| a micro-investing app | You add small amounts, sometimes the spare change from purchases, and the provider invests them. | It varies by provider, and can include a subscription, brokerage and withdrawal fees. Check who owns the investments, you or the provider. |
| your super | Your employer pays in and your fund invests it for your retirement. | Your fund’s fees. You can usually choose how it is invested. |
Moneysmart has a page on each: shares, ETFs, managed funds, micro-investing and super. Our own guides go further on ETFs and on what a portfolio is.
how to buy shares in australia, step by step
If you want to own a company’s shares directly, you generally buy them through a broker. Moneysmart’s steps for an online broker are:
- Choose a broker and open an account. It usually takes less than 15 minutes, though identity checks can take a day or two.
- Add money. Transfer it from your bank. Most online brokers need the money in your account before you place a trade.
- Place your order. Pick the company and the number of shares, then the order type. A market order buys at the next available price. A limit order sets the most you will pay, and only goes through if the market reaches that price.
- Check the confirmation. It shows the price, the number of shares and the fees. Keep it for tax time.
Selling works the same way in reverse. The money reaches your brokerage account two business days after the trade, which is called T+2 settlementTrade day plus two business days: how long a trade on an Australian exchange takes to settle..
On cost, Moneysmart says most online brokers charge a flat fee for smaller trades, often around $20 or less, and a percentage of the trade for larger ones. It adds that fees can be a big share of a small trade.
There is also a floor to know about. The ASX says it sets no minimum order size. Its settlement rules do stop a broker registering a holding smaller than a marketable parcelA parcel of shares worth $500 or more, in general. The ASX’s term., which is generally $500, and many brokers will not take an order below that.
starting with a small amount
You do not need thousands to begin. Moneysmart notes that many micro-investing apps take as little as a few dollars at a time, and that managed funds and ETFs can also let you start with smaller amounts while spreading the money across many investments.
Small amounts change the sums in two ways, and Moneysmart flags both: returns build more slowly, and fees have a larger effect. A $10 fee is 0.1% of $10,000 and 5% of $200.
With an app that splits shares into fractions, also ask who owns the investment. Moneysmart’s page on fractional share trading gives the example of an investor whose provider would not transfer her holding. The only way to change broker was to sell, pay a fee, pay capital gains tax on the profit and buy again somewhere else.
Its five questions before choosing a micro-investing app are a good list for any app. Do I understand what my money will be invested in? How does the app work? Who will own the investments? What fees will I pay? Is this the right way to reach my goals?
spread it out
DiversificationSpreading your money across a number of different investments, so that one doing badly has a smaller effect on the total. means spreading your money so that one bad result does less damage. Moneysmart lists four ways to do it: across asset classes, within an asset class, across countries, and through funds.
Two of its points matter most when you are starting. Australia is a small share of the world’s investment opportunities, so money held only in Australian shares sits in one market. And a single fund can do much of the spreading for you. Its example is an ETF tracking the S&P/ASX 200, which gives you Australia’s 200 largest companies through one investment.
Spreading money out makes you less reliant on any one investment. It does not remove the risk of losing money.
what it costs
Every way of investing has a cost, and the names differ:
- Brokerage. What a broker charges each time you buy or sell.
- Platform or account fees. Some brokers and apps charge a monthly fee, or a fee when you are inactive.
- Management fees and costs. The ongoing cost of running a managed fund or an ETF.
- Performance fees. Charged by some funds when they do better than a benchmark.
- Foreign exchange fees. May apply when you buy shares listed overseas.
Moneysmart’s line on fees is that small differences can make a big difference to your investment over time. Its managed funds fee calculator lets you test that with your own numbers.
A percentage fee grows with your balance and a flat fee stays where it is, so which costs less depends on how much you hold. Our fee calculator shows where that changes for inaam.
tax, in short
Investment income is taxed. In Moneysmart’s summary of investing and tax, interest, dividends and fund distributions are generally added to your other income, and what you pay depends on your marginal tax rate. Some dividends come with franking credits, which reflect tax the company has already paid.
When you sell for more than you paid, the difference is a capital gain, and you may pay capital gains tax on it. A net loss can generally be used to reduce gains in future years.
The rule on gains is changing. Today, the ATO says, an Australian resident who has owned an asset for at least 12 months can reduce the capital gain by 50%. It also says that from 1 July 2027 that discount is replaced, for individuals, trusts and partnerships, by cost base indexation and a 30% minimum tax rate on capital gains, and that the change only applies to gains that accrue after that date. The ATO describes these measures as now law.
Keep every confirmation and statement. Super has its own tax rules. For anything specific to you, the ATO or a registered tax agent is the place to ask.
you may already be an investor
If you work in Australia you probably have super, and that is money already invested for you. Moneysmart’s quick facts: if you are 18 or older your employer must usually pay it, it is paid at 12% of your qualifying earnings, and you can usually reach it at 60 if you retire or change employers, or at 65 either way.
Before putting money anywhere new, check how your super is invested and how many accounts you have. You can see your accounts, and combine them for free, through the ATO in myGov. Our guide to super basics covers the rest.
check who you are dealing with
Moneysmart reports that Australians lost more than $837 million to investment scams in 2025, citing the National Anti-Scam Centre. Its advice on what to check before you invest comes down to stop, check and protect:
- Stop if you are being pressured to invest quickly, or promised high returns with little or no risk.
- Check that the company holds an Australian financial services licence, or is authorised by someone who does, by searching ASIC’s professional registers yourself. Do not rely on a link or a phone number in the offer.
- Read the offer documents, such as the PDS, and make sure you can explain how the investment makes money.
A licence is a minimum. Moneysmart is clear that holding one does not mean ASIC endorses the company, and does not guarantee you will not lose money. You can run the same check on us: our licence details are in the footer of this page.
after you invest
Investing is mostly waiting. Moneysmart’s guide on how to track your investments suggests a review every six to 12 months as a starting point for long-term shares and funds, and again when your circumstances change. It also says not to base a decision to keep or sell only on a fall in value.
When you do review, look at what you are paying, whether the investment still fits the goal, and whether the mix has drifted. RebalancingAdjusting your investments from time to time back to the mix that suits your goals and your appetite for risk. brings it back to the mix you chose, either by putting new money into what has fallen behind or by selling some of what has grown. Selling can create a tax bill.
when to get advice
A guide like this one is general. Moneysmart separates general advice, which does not consider your circumstances, from personal advice, which is tailored to your income, expenses, assets, debts, goals and risk tolerance. Whoever gives personal advice must act in your best interest.
Personal advice may be worth paying for if your situation is complex, you have inherited a large sum, or you want someone to check you are on track. Licensed advisers are listed on the financial advisers register.
where inaam fits
how we do it
a managed fund, in an app
inaam is a registered managed fund you reach through an app, picked for impact across five themes you customise. Every company the fund holds is named in the app, with the reason it is there.
In the terms used above, your money is pooled, the fund picks the companies and you own units in the fund. How companies are picked is on how it works, and the five themes are on investment areas.
The subscription is $10 a month, which is $120 a year whatever your balance, and it is separate from the money you invest. The minimum to invest in the fund is $100. A buy-sell spread of 0.1% applies when you enter or exit the fund. Sign-up happens in the app.
A flat fee is a large share of a small balance, so run your own numbers on the fee calculator first. The PDS sets out the costs and the risks, and the TMD sets out who the fund is designed for. Both are linked at the foot of this page.
what to take away
Start with money you can leave alone for five years or more. Give it a goal, decide how big a fall you could sit through, and pick one way in that you understand well enough to explain to someone else.
Then keep the costs low for the amount you hold, spread it across more than one company, and give it time. The rest is detail you can learn as you go, and the guides below cover it.
sources
Everything above was checked against these pages on 7 October 2026. Each one is the publisher’s own, and the date is when the publisher last updated it.
- Moneysmart, Develop an investing plan, last updated 18 June 2026.
- Moneysmart, Choose your investments, last updated 17 September 2026.
- Moneysmart, Investment diversification, last updated 1 October 2026.
- Moneysmart, Micro-investing, last updated 16 September 2026.
- Moneysmart, Fractional share trading, last updated 16 September 2026.
- Moneysmart, How to buy and sell shares, last updated 2 October 2026.
- Moneysmart, What is share market volatility, last updated 1 September 2026.
- Moneysmart, What is a managed fund, last updated 1 July 2026.
- Moneysmart, Choosing a managed fund, last updated 1 July 2026.
- Moneysmart, Exchange traded funds (ETFs), last updated 1 September 2026.
- Moneysmart, Investing and tax, last updated 2 October 2026.
- Moneysmart, Track your investments, last updated 17 September 2026.
- Moneysmart, Save for an emergency fund, last updated 9 September 2026.
- Moneysmart, Superannuation, last updated 14 September 2026.
- Moneysmart, Check before you invest, last updated 4 September 2026.
- Moneysmart, General and personal financial advice, last updated 18 June 2026.
- ASX, Reporting misconduct to ASX, FAQs: small orders.
- ATO, CGT discount, last updated 29 June 2026.
- ATO, Reforming negative gearing and capital gains tax, last updated 29 June 2026.
