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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. 75% of retail investor accounts lose money when trading CFDs and 2.20% of retail investor accounts had positions closed due to margin call, over the last 12 months. 75% of retail investor accounts lose money when trading CFDs, and 2.20% had positions closed due to margin calls over the last 12 months.

Stock of the day

Netwealth Group

Netwealth is seeking government aid due to a $100 million loss associated with the collapse of the First Guardian scheme.

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(AI video summary)

This video was created on 27 October 2025 for IG audiences by ausbiz.

ASX code: NWL

Netwealth faces challenges amid First Guardian fallout

Netwealth, an Australian financial services platform, has requested federal government assistance to repay around 1100 customers who lost over $100 million in the collapse of the First Guardian Retirement Investment Scheme. Netwealth claims that fraud by the scheme and its manager, Falcon Capital, caused the losses.

The Australian Securities and Investments Commission (ASIC) is investigating the companies involved in the First Guardian collapse, including Netwealth. As a result, Netwealth is suing Equity Trustees over the scheme's effects. Despite the turmoil, Netwealth's share price rose 1.3% to $32.17.

Investment outlook

Analysts suggest selling Netwealth due to its high valuation, with the price-to-earnings (P/E) ratio at 67 times. The company saw net inflows of about 4 billion last quarter, but the exposure to First Guardian raises concerns, leading analysts to set a target price of $18.60.

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