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 a stock exchange such as the NZX, NASDAQ etc.  Many ETFs follow a market index (like the S&P 500 or NZX 50) to match its overall performance.

On InvestNow we only offer a range of ETFs from Smart – these are listed on the NZX.  As per our Managed Funds service, orders for these processed once a day (12pm on a business day).

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.