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InvestNow Getting Started Guide2020-10-13T12:13:05+12:00

InvestNow Getting Started Guide

Building your investment portfolio for the first time can be quite a daunting process, so we’ve broken down the key steps we think any first-time investor can follow to get up and running. If in doubt, contact a financial advisor.

Step One: Know the types of investments you have access to

Knowing what investment types you have access to and what makes them different will help you when it comes time to structure your investment portfolio. For the purpose of this guide, we will only refer to investment types and options that are available on InvestNow, which are:

Managed Funds2020-07-14T16:26:32+12:00

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.

ETFs2020-07-17T16:34:04+12:00

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).

Term Deposits2020-07-14T16:43:09+12:00

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.

Step Two: Find out what type of investor you are

Within the investment industry, there are 5 types of investors. What type of investor you are will ultimately depend on your appetite for risk. 

If you need help finding out what type of investor you are, use the Sorted Investor Kickstarter questionnaire. On completion of the questionnaire, you’ll receive a chart that will show what mix of investment asset classes are right for your investor type. Alternatively, click on each investor type below to reveal a description of the investor type and the matching asset allocation chart. The 5 investor types are listed below in order of those who prefer low-risk to those who are comfortable with high-risk:

Defensive2020-07-14T17:05:20+12:00

A defensive investor:

  • Requires investments to be protected to minimise ups and down in value
  • Is prepared to accept lower long-term returns
  • May need regular income from their investments

What mix of investments suits a defensive investor?

To achieve the results you are looking for as a defensive investor (the amount of money you get back and the ups and downs you experience), you’ll need a certain mix of various kinds of investments. For example, a defensive investor might have:

Conservative2020-07-15T12:23:12+12:00

A conservative investor:

  • Looks to minimise ups and downs in the value of their investments
  • Is prepared to accept lower returns
  • May need regular income from their investments

What mix of investments suits a conservative investor?

To achieve the results you are looking for as a conservative investor (the amount of money you get back and the ups and downs you experience), you’ll need a certain mix of various kinds of investments. For example, a conservative investor might have:

Balanced2020-07-15T13:32:05+12:00

A balanced investor:

  • Tolerates some ups and downs in the value of their investments
  • Can achieve good returns over the long term
  • Needs minimal income from their investments

What mix of investments suits a balanced investor?

To achieve the results you are looking for as a balanced investor (the amount of money you get back and the ups and downs you experience), you’ll need a certain mix of various kinds of investments. For example, a balanced investor might have:

Growth2020-07-15T13:02:02+12:00

A growth investor:

  • Accepts significant ups and downs in the value of their investments
  • Can achieve high returns over the long term
  • Needs minimal income from their investments

What mix of investments suits a growth investor?

To achieve the results you are looking for as a growth investor (the amount of money you get back and the ups and downs you experience), you’ll need a certain mix of various kinds of investments. For example, a growth investor might have:

Aggressive2020-07-15T13:08:07+12:00

An aggressive investor:

  • Accepts extreme ups and downs in the value of their investments
  • Can achieve higher returns over the long term
  • Does not need regular income from their investments

What mix of investments suits a growth investor?

To achieve the results you are looking for as an aggressive investor (the amount of money you get back and the ups and downs you experience), you’ll need a certain mix of various kinds of investments. For example, an aggressive investor might have:

Step Three: Choose your investments accordingly – Asset allocation

What you invest in is a personal choice. You may choose to structure your portfolio using the standard investor type asset allocations mentioned above, or you may choose to do something completely different. If you did want to use the Sorted Investor Kickstarter results as a guide, below is an example of how to match your results to the investment options available on InvestNow. Note, the ‘Investment Types’ mentioned in step one can fit into multiple asset classes.

‘Aggressive investor’

Cash (4%)

An aggressive investor could allocate 4% of their investment portfolio to managed funds in the Cash and Cash Equivalent InvestNow fund category.

Bonds (6%)

An aggressive investor could allocate 6% of their investment portfolio to managed funds in either the International Fixed Interest or NZ Fixed Interest InvestNow fund categories. Term Deposits could also be used in this allocation.

Property (10%)

An aggressive investor could allocate 10% of their investment portfolio to managed funds in the Listed Property InvestNow Fund Category. Managed funds in the Diversified InvestNow fund category could also be used in this allocation.

Shares (80%)

An aggressive investor could allocate 80% of their investment portfolio to managed funds in either the Australasian Equities or International Equities InvestNow fund categories.

Things to consider…

  • Regular reviews of your portfolio, to make sure your assets are right for your circumstances, are helpful.
  • For information on specific funds InvestNow offer, please refer to our range of funds page, which includes Product Disclosure Statements (PDS’s) of each individual fund.

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Please note:
InvestNow does not offer personalised investment advice, we just focus on giving our customers the freedom to choose their investments combined with the convenience of an online solution. If you have any questions about InvestNow or need assistance in the account and transaction process, please contact us and we will be happy to help.