InvestNow KiwiSaver Scheme Getting Started Guide
With so many great investment options to choose from, building your InvestNow KiwiSaver Scheme portfolio can be a little daunting… So we’ve put together a little guide as a place to start. If in doubt, contact a financial advisor.
Step One: 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 is 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:
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:
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:
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:
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:
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 an aggressive 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 Two: 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 in the InvestNow KiwiSaver Scheme.
Applying the Sorted asset allocation – ‘Aggressive investor’ example:
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.
Property (10%)
An aggressive investor could allocate 10% of their investment portfolio to managed funds in the Listed Property InvestNow Fund Category.
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.
Rebalance your portfolio
Once you have selected the initial funds for your KiwiSaver portfolio, you can change/rebalance it at any time in the future – there are two options:
- Future only – Any changes you make will only apply to your future contributions
- Current and future – Any changes you make will apply to both your current holdings, plus all future contributions you make
To make any such changes, select the “Change my portfolio” page when logged into your KiwiSaver portfolio.
Find out more about how to make changes to your KiwiSaver portfolio by referring to our FAQ here.
Things to consider…
- Regular reviews of your portfolio to make sure your assets are right for your circumstances are helpful
- You can find information on specific funds InvestNow offer by going to our ‘InvestNow KiwiSaver Scheme range of funds page’, which includes Product Disclosure Statements (PDS’s) for each individual fund
- We also have a range of Conservative, Balanced and Growth funds to choose from that align to certain risk profiles above. We refer to these as our easy-select Diversified funds
Joining the InvestNow KiwiSaver Scheme
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.