Investments are one of the steps consumers take to increase their wealth portfolio. However, there is no guarantee that the investment will provide the customer with financial freedom and care is needed when selecting the funds. For investors, a careful mix of investments that span different funds and risk categories might be a good strategy. A healthy mix of guaranteed and risk funds may also be a good idea if the investor has a risk appetite. National Australia Bank Investments provide customers with the variety they need to set them on the right journey. This review takes a look to see whether customers are in good hands.
A bank that has its finger on the pulse where investments are concerned, is Credit Agricole. We recently did a full review on this product.
The Connection Between Risk and Reward
There are a number of risk categories that customers should consider. Whether their chosen funds are made up of government bonds or they lean towards equities, will rely mainly on the risk they’re willing to take. Their choice may affect the return on the investment.
No Risk Investments
These are often the products in the branch that offer customers a guarantee on their capital. For fixed investments, customers also tend to have the benefit of a fixed return. When this type of investment is done through a brokerage or an advisory firm, the investment usually has an 80% to 100% guarantee on the capital alone. The performance of investments is hardly ever guaranteed, as the fluctuations in the market often dictate the outcome of the investments. The return of no risk investments is often much lower than any of the other types of investment. Those who can't even afford the slightest bit of risk should consider signing up for one of National Australia Bank's savings accounts.
Very Low-Risk Investments
This investment type is suitable for those who wish to dip their toes in the world of investments but don’t want to be exposed to risky portfolios. The return on these investments can be lower than inflation, however, fund managers try to beat inflation to ensure proper growth. These investments still have exposure to some risk, which means that investors can lose some or all of their money.
With a slightly bigger exposure to risk, customers now have the opportunity to potentially earn a higher return on their investment. In this category, the return tends to run slightly higher than inflation and the regular bank products. In this category, slightly higher risk means a slightly higher chance that the investor may lose all or some of their money.
This is the fund grouping that leans a little more into the equity markets and, therefore, opens up the possibility to greater earning. It also means customers need to have an appetite for risk as the exposure here could result in great losses.In this category, customers can expect returns that outperform banks and inflation, plus a little extra.
In this risk portfolio, customers almost invest with the expectation to lose their funds. This is because the funds are very sensitive to market conditions due to the portfolios chosen. Customers are recommended to take this kind of investment on only when they have sufficient time to make up for the costs and potential losses.
Very High Risk
Customers who desire the maximum return on their investment and have no qualms about risk can opt for this investments risk category. The stakes are incredibly high and when customers lose in this category, they tend to lose all.
National Australia Bank Investments Product Offerings
This option allows customers to take full control of their future financial well-being. Furthermore, customers enjoy the benefit of a collaboration between MLC and NAB.
- Customers choose between simple and flexible investment options.
- Also, this super allows customers to take it with them from job to job.
- The option also provides access to lifestyle offers and benefits.
- Finally, customers have the option to open a new super or consolidate their existing ones.
Self Managed Super Funds (SMSF)
This is the ideal option for those with the know-how to get their funds on the right trajectory.
- Customers who have enough time, knowledge, and skills to manage a super will find this ideal.
- Furthermore, this is the ideal option for those who wish to meet their legal and other obligations.
- There are also additional benefits provided by the SMSF.
- Also, a self-managed super needs to be cost-effective which requires a minimum super of $350,000.
- Customers have access to establishment and setup services.
- The fees and pricing are disclosed, as well as other helpful information to get things started.
- Finally, customers have access to a host of professionals to provide advice on their fund.
Services Provided Under SMSF
- SMMSF Establishment Service
- Financial Advice
- Invest in Property
- Online Trading
- Cash and Transactions
- Fixed Income
- Borrow to Invest
Self Managed Super Funds for Business
This service is to provide the SMSF loan to business customers. It provides that bit of extra security in the setup of a trust, especially in the event that there is no contract of sale.
- Customers may borrow from SMSFs to invest in property and is also a tax-efficient solution.
- Property types that can be accommodated include commercial or rural property.
- The loan term is up to 15 years for commercial and rural property, with a minimum of $20,000.
- Commercial and rural legal fees apply.
- The interest options include flexibility or a variable rate. The fixed rate can be 1-5 years or 10 years.
- Customers have up to 5 years interest only options, however, only in arrears.
- The maximum LTV on a commercial property is 70% and 35%-65% on rural properties.
- Finally, customers have access to expert advice.
Customers have access to a range of products and funds to meet their financial goals. Furthermore, they can adjust their investment portfolio as their needs change.
- This option also gives customers access to a margin lending facility which allows them to borrow money to purchase their investment.
- Customers can transact online, by phone, fax, or email.
- Furthermore, deposits are done through BPAY, direct debit, or check.
- Also, customers can set up regular investments or withdrawals.
- The online facility provides customers with access to their account performance, unit prices, balances, and transactions online.
- Finally, customers may be able to transfer fund units from other service providers without incurring capital gains tax.
Online Trading Platform
Nabtrade provides customers with access to the latest research, investing insights, and more. Furthermore, the tool can help customers spot opportunities and trade with confidence.
- The platform provides customers with access to trade online from $14.95.
- Customers enjoy access to over 1,500 ASX research recommendations.
- The platform provides access to the world’s biggest brands in share trading.
- There is also a range of innovative tools.
- Customers also enjoy real-time transfers between their nabtrade and NAB accounts.
- Finally, customers earn up to 2.15% PA on balances up to $1 million with the nabtrade High-Interest Account.
What We Like About National Australia Bank Investments
These is a tight formation of investment options that will undoubtedly add value to a wealth portfolio. With the careful selection of funds and assistance from specialists, customers have the opportunity to expand their investment horizons.
Furthermore, there is a ton of information on the site that allows customers to do a fair amount of research on their chosen funds and products.
Finally, customers have access to a handy online trading platform in order to make their decisions fast and monitor the progress. This is especially convenient for those who can’t always make it into the branch.
What We Don’t Like About National Australia Bank Investments
The entire investment focus seems to be around supers. This is great because at least there are terrific products. However, an investment strategy should surely have more to it than just supers.
Furthermore, we’re a little concerned that those who don’t have much financial acumen, will find the products a little tough to understand. We also have a feeling that the investment range is far bigger than what is available on the website, however, for this customers will have to go into the branch. This causes convenience to drop a few notches.
We recently did a full review on National Australia Bank.
Critical Reviews Rating National Australia Bank Investments – 8 of 10
It’s not often we give anything less than a 10 when it comes to investments, as those who take the time to offer these products tend to do it well. With an amazing product portfolio such as National Australia Bank’s, it’s a little frustrating that they didn’t put as much effort into their investments as many of the other products. The other reason we’ve had to consider dropping the rate was that the information is a little bit scattered, which is unusual for National Australia Bank. A good session of regrouping and providing a little more clarity on the products will go a long way.
A bank that manages to secure a good score on the investment front, is Bank of America.