Sharesies and InvestNow are popular investment platforms in New Zealand. Sharesies is beginner-friendly with no minimum investment, while InvestNow offers low fees and diverse funds. Diversify for risk management, align risk with your time horizon, and maintain a long-term perspective in your investment strategy. Consider a financial advisor for personalised guidance.
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“I want to start investing around $100 a week for my kids. What’s the best app to use, Sharesies or Investnow? What is the easiest set-and-forget shares to put into”
(Original question on Reddit)
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Platform Choice:
Sharesies and InvestNow are two popular investment platforms in New Zealand, each with its unique features. Sharesies is a user-friendly platform ideal for beginners. It offers a range of investment options, including individual stocks, ETFs, and managed funds. The great advantage of Sharesies is that it has no minimum investment requirement, making it accessible for contributions as small as $100 per week. InvestNow, on the other hand, is known for its low fees and a wide selection of funds. However, some funds on InvestNow may have minimum investment requirements, so it’s essential to review the specific options available to determine their suitability for your regular contributions.
Diversification:
Diversifying your investments is crucial for risk management. Both Sharesies and InvestNow offer a variety of investment options, allowing you to diversify your portfolio across different asset classes. For a “set and forget” approach, consider investing in index funds or ETFs. These funds aim to replicate the performance of a specific market index, such as the NZX 50, and require minimal active management. By spreading your investments across different assets, you can reduce the impact of volatility on your portfolio.
Risk and Time Horizon:
Assess your risk tolerance and investment horizon. Generally, a longer investment horizon allows for a higher allocation to growth assets like stocks. If you aim to secure your children’s long-term future, you can consider a more aggressive investment strategy. Regular contributions of $100 per week through dollar-cost averaging can help mitigate market fluctuations and build wealth over time. Keep in mind that investments are subject to market risk, and your risk tolerance should align with your financial objectives.
Long-Term Perspective:
Investing is a long-term commitment. It’s essential to maintain a patient approach and not be swayed by short-term market movements. Historically, the stock market tends to provide positive returns over extended periods. To ensure that your investments align with your goals and risk tolerance, it’s a good practice to review your portfolio and make adjustments, if necessary, periodically. If you are uncertain about your investment choices or financial goals, consider seeking advice from a financial advisor who can provide personalised guidance. Both Sharesies and InvestNow are reputable platforms, so your choice should be based on your preferences and the specific investment options they offer.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
