Access DRP via Commsec account

[VeryGreen]

Hello,
I've recently sold my first property and have made a killing on it. Just over $200,000 from purchase price, however I had borrowed against it to purchase what my wife and I like to call our "forever home".

But after mortgage, fee's and very minimal capital gains I will expect to come away with just over $100,000.

I am wanting to put it into some passive investments and I am thinking something like $50k in an index fund like VAS, $50k in an LIC (undecided at the moment, something not so heavy in finance)

I would also like to take advantage of DRP's.

I have created a commsec account about 12 months ago which has sat there empty waiting for such an occasion to come about. However, I have no experience with it or purchasing shares. I cant find any information out there but is it possible to participate in DRP's if you buy ETF's or LIC's direct from market in commsec or do you have to open a portfolio directly with them?

Regards,
VG

 

[willy1111]

Within a few days of buying shares via your broker (Comsec) the share registry will post you paperwork which may assist with this.

There are 2 big share registry's that look after about 90% of the shares listed on asx administration which includes DRP.

The relevant share registry can be found on the asx website for each particular company...Computershare looks after VAS https://www.asx.com.au/asx/share-price-research/company/VAS/details

Once you receive the paperwork via mail you can go to Computershares website, register an account and they should have VAS in there for you to update your preferences. If you buy other shares that are administered by Computershare they will also be there.

The other big registry is Link Market Services, then there are a few other small ones.

 

[HelloU]

VeryGreen....you talked of DRP.....for peeps on a higher income tax bracket some of the LIC's offer payment as a dividend 'substitution plan' rather than a 'reinvestment plan' (changes the tax position-individual and capital gains).
Google is your friend if interested.

 

[VeryGreen]

Thanks Willy!!
That's exactly what I wanted to know, I just couldn't find it anywhere. Thank you.

Thanks HelloU as well, I'll definately look into that as I've been very privileged in falling into a high paying role. Tax minimisation is very benifit to me. Cheers

 

[Redbeard]

Under the support/education & community tabs of Commsec there is a wealth of information there for new investors. As you seem new to share trading ,, read , learn .read more, listen , understand..

Index funds and LIC just track the "market" as a whole. If thats what you want great..

DRP is offered by most companies and can be looked up on the ASX website listing on each company. As others have said Bonus shares are an option but they have a different set of rules.. Look up ANZs website for the distinction.

What you should also think about is companies that pay 100% franking credits if you are based in Australia.