What are the buy or sell spreads?

Buy/Sell spreads

When you buy or sell units in a fund, you may be charged a buy or sell spread. The buy spread is added to the unit price when you buy units, and the sell spread is deducted from the unit price when you sell units. For example: if you invest $10,000 into a fund with a 0.10% buy spread, the buy spread would be added to the price, bringing the starting value of your investment to $9,990.

Buy or sell spreads are intended to cover […]

By |2020-06-19T15:13:15+12:00March 10th, 2018|, , |Comments Off on What are the buy or sell spreads?

What are cleared funds?

Cleared funds are monies in your Transaction Account that have been desposited from your nominated account and are available for fund purchases.

By |2019-06-14T13:45:16+12:00December 18th, 2016||Comments Off on What are cleared funds?

What is the difference between and Investor and a Client?

An Investor is the entity (Individual, Joint, Trust or NZ Company) that has an account with InvestNow. A client is an individual, or individuals, that have access to the Investor account. Clients can perform one of a number of roles (see Roles FAQ) and can have a number of permissions (see Client Permissions FAQ).

By |2019-06-14T14:06:41+12:00December 10th, 2016||Comments Off on What is the difference between and Investor and a Client?

What is Resident Withholding Tax (RWT)?

You can find out more on the IRD website.

Resident Withholding Tax (RWT) is a tax deducted from the gross amount of interest paid to you. It is deducted at the time when the interest is paid to your InvestNow cash account.

When you open an InvestNow account, you will be asked to select your RWT rate and IRD number.

If we do not have an IRD number your account will be taxed at the maximum “non-declaration” rate of 33%.

By |2019-06-14T14:10:03+12:00December 10th, 2016|, |Comments Off on What is Resident Withholding Tax (RWT)?

What is a Prescribed Investor Rate (PIR)?

An investor’s PIR is the tax rate that will be applied to any income earned from a PIE fund. A PIR is similar to an individual’s Resident Withholding Tax rate, except that the top PIR is 28% whereas the top RWT rate is 33%. All investors are able to select their own PIR, and this is the rate at which their taxable income in a PIE will be taxed.

InvestNow is obliged to use the default PIR of 28% for individuals, unless one of the lower rates of 10.5% or 17.5% […]

By |2019-06-14T14:18:40+12:00December 10th, 2016||Comments Off on What is a Prescribed Investor Rate (PIR)?