A Term Deposit is a fixed-term investment that offers a fixed rate of return. Term Deposits are placed with a bank and returned on maturity, which can range from 1 month to 5 years.

ETF’s are Managed Funds, however, unlike managed funds ETFs are traded on the exchange (such as the NZX). The performance of an ETF simply matches the performance of a particular index (such as the S&P500 & NZX50).

Managed Funds are sometimes referred to as pooled investments. You and a group of other investors invest in a fund that’s managed by experts, that then go and invest in shares and other securities on your behalf.