Best Investment Opportunities in NZ
There are countless options for investing for beginners in NZ, and the hard part is deciding which ones are right for you. Let the experts at MyFuture take the reins. By investing intelligently and diversifying your investment choices, we’ll help you maximise your returns.
Everyone has different levels of risk they are willing to take, known as your risk tolerance. What you decide to invest in is completely up to you, but you should make decisions with all the available information. The expert Qualified Financial Advisers at MyFuture can coordinate a risk assessment with you and recommend the best ways to invest money in NZ to suit your goals.
Investing In New Zealand
Start investing in NZ as an excellent opportunity to let your money work for you.
Where you choose to invest will vary depending on your financial plan, but our Qualified Financial Planners can guide you towards a healthy portfolio of investments to get you on the road to a secure financial future.
The most popular NZ investment options for Kiwis include:
Cash & Term Deposits
A relatively low-risk and easy way to invest that most people know is cash deposits. You simply deposit your money into a bank savings account that earns interest. Accounts where you have instant access to your funds anytime, providing you with more liquidity, tend to have lower interest rates.
Alternatively, you can cash your money into fixed-term accounts. These can range anywhere between 1 month and 5 years, depending on how long you want to save for and are likely to earn you a higher interest rate. Fortunately, you can still access your money from fixed–term deposits, but you’ll likely lose the interest rate as a ‘break fee.’
KiwiSaver
KiwiSaver is a government-run retirement or first–home savings scheme to which you can voluntarily make regular contributions from your income. There are many different providers who will invest your savings on your behalf. The best thing about Kiwisaver funds is that your employer must contribute 3% of your gross salary on top of the government’s 50 cents for every dollar you contribute up to $521.43 a year.
A Kiwisaver fund is a relatively easy investment option, and you can choose the amount of risk you’re willing to take as an investor. There are no joining fees, and it can’t be touched until retirement (or to buy a house). This makes it a great opportunity to build high returns year after year and enable you to create a comfortable retirement plan.
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Shares
When you buy a share or stock, you buy a small part of ownership of a company. The more you own, the more of the company you own, and their value will follow the company’s fortunes. The price of shares can drastically change daily, meaning your investment asset falls and rises in value in the short term. Investing in shares can be lucrative, but it also carries substantial risks that should be carefully considered in a financial planning session.
Investing in shares or stocks can be done globally or just in the New Zealand market if you prefer. Access to financial markets across the globe also helps us understand local market conditions to identify the best opportunities for share investing.
Property
Property investment is one of the most popular types of investment in New Zealand and one of the most stable asset classes. The concept is fairly straightforward: you purchase a home and gain profit by renting it out to tenants who pay off the mortgage. Property can be a great long-term investment because it provides you with cash flow as well as an appreciation in value.
The implications of investing in property vary depending on the property you purchase and what you choose to do with it. Various lending schemes and tax benefits may be available, but you should consult a property investment specialist to be sure you’re getting the best deal.
The best thing about property as an investment is that it has tangible value. No matter what happens with house prices, you will always have the property itself.
Bonds
Bonds are when you lend your money to a company or the government for a fixed period. Interest rates are generally higher than the interest from a bank account term deposit as there is more risk involved. The riskier the company or government you invest in, the higher the return on your investment (ROI).
The variability of risk and difficulty depends on the companies or organisations you choose to invest in. A certain level of bond experience and knowledge will go a long way in getting you a return on your investment.
Actively Managed Funds
Another easy option for most investors is to invest in an actively managed fund. This is where a fund manager or a team of individuals will watch the share market and make decisions about where to invest your money on a daily basis.
You can invest in almost anything via actively managed funds, including companies from New Zealand, Australia, America and Europe. They can be industry–specific, and you can choose the level of risk you are willing to accept. It’s important to keep in mind the fees you pay for these services. Alternatively, you could opt for passively managed funds, which don’t have day-to-day management but instead track specific indexes or follow a set-and-forget investment formula.
Discover the best investments NZ-wide with MyFuture
If you’re looking for what to invest in right now in NZ, MyFuture has got you covered. With us, you can discover how you can grow your money over time through shares, property, bonds, and more. We’ll learn more about you and your financial situation and work together to find the best investment strategies for you.
Reach out to MyFuture today for your FREE no–obligation Discovery Session to get the professional advice you deserve on where to invest money in NZ.