Grow your wealth with a Managed Fund

With low interest on savings accounts and KiwiSaver accounts locked-in until retirement; Kiwi investors are being encouraged to diversify and think about incorporating Managed Funds into their portfolio to help achieve their financial goals.

Managed Funds are just as simple to set up and run as KiwiSaver accounts, but they’re much more flexible as you can control how much and how often you want to invest, and, crucially, you can access the funds whenever you need them.

“Both KiwiSaver and Managed Funds pool together people’s money, so that providers can invest them on a large scale. Having both kinds of investments is a really valuable combination as you can use them for different purposes.

While your KiwiSaver account is there to save for your retirement, you can use a Managed Fund to help save for any goal you might have – purchasing an investment property, taking a family holiday, home renovations or even buying that dream car…” says Generate Senior Wealth Adviser, Tom Waugh.

“The key factor is understanding why you are investing. What is the goal or objective? From here we can then align that goal with one of our available funds. Each fund has a recommended investment timeframe meaning the more time you have generally the more risk an investor can take on,” says Waugh.

Investing in a Managed Fund with Generate is easy; a minimum $1000 savings will get you started, and then their team of expert fund managers will actively manage your investment, and make all the tough decisions about where and when to invest.

Working with a Generate adviser can be particularly helpful for nervous or first-time investors. Advisers are there to educate and empower clients so that they can fully understand where and why they’re investing.

“We can also talk through the different ways to get started. For example the dollar-cost averaging strategy can be described as dipping your toes in the water before taking the plunge. This is when an investor puts their money in in smaller increments, and that allows people to essentially test the water, and become more involved in the process and understand how the investment works,’ says Waugh.

This strategy takes the stress and hassle around investors trying to time the market and rather works to try and reduce the impacts of volatility on people’s investments. Depending on market conditions this method may actually see a lower cost per share for investors too.

Generate operates using a highly vetted responsible investment philosophy, and investment decisions made by Generate not only consider potential financial returns but also the social and environmental impacts of these investments.

“This means for a lot of people who want to have a say in how their funds are invested”.

Managed Funds returns are typically higher than those from traditional bank savings accounts or term deposits, but like any investment, Waugh cautions there are always risks.

“Investments can go up and down from month to month. This is a normal part of investing and the higher the weighting to growth assets, the higher the volatility; we can help you through the highs and lows of investing, so come and talk to us!”

Find out more about Generate Managed Funds.