MAKING THE MOST OF YOUR INVESTMENTS IN 2022

More and more New Zealanders are being drawn to Investment Funds as they look to secure some financial stability and freedom for themselves and their families. So, what is an Investment Fund? And what questions do you need to ask to find a fund that’s perfect for you?

Amidst the everyday bustle of raising families, running households and holding down careers, many Kiwis struggle to nd the time (and energy!) needed to really focus on their nancial future.

As a result, Investment Funds are becoming increasingly popular. They make it incredibly easy to become an investor in some of the very best local and international companies, including brands you may well use on a daily basis.

SHOULD YOU CONSIDER AN INVESTMENT FUND?

There’s no question that the cost of living here in New Zealand is increasing. Throw in a constant stream of unanticipated outgoings (think school trips, urgent visits to the vet, vehicle repairs etc) and it can be hard to get ahead.

Investing your savings is one way to fast track the growth of your personal wealth. But knowing where to invest your hard-earned capital isn’t always straightforward. Investment Funds take that out of the equation, ensuring you’re always bene tting from the experience and expertise of the professionals managing your fund. And nowadays, you can get started in an Investment Fund with Milford with just $1,000.

INVESTMENT FUNDS VS KIWISAVER

Just like a KiwiSaver fund, an Investment Fund is run by a professional fund manager and usually invests in a mix of shares, bonds and cash across local and overseas markets. In some cases, the same fund you’re investing in through your KiwiSaver account may also be o ered by your KiwiSaver provider as an Investment Fund.

The big di erence is your ability to access your money. Unless you’re looking to buy your

rst home, your KiwiSaver funds are almost impossible to access until you retire. However, with an Investment Fund, you can withdraw your money whenever you need it. While most Investment Funds will have a minimum recommended timeframe you should commit to, you can rest assured you can get to your money should life throw you one of its little curveballs!

HOW TO CHOOSE AN INVESTMENT FUND

There are three key factors you should consider when choosing which fund – or funds – you want to invest your money in.

Your Goals

Maybe you’re aiming to take a step up the property ladder. Maybe it’s a big family holiday or an education fund you’re building. Or maybe you’re just getting started early to ensure you have the biggest nest egg possible down the track. Whatever your goals are, it’s important to keep them front of mind when making your investment decisions.

Your Timeframe

When do you think you’ll need to start withdrawing your money? Some funds are designed for short-term goals, and others are designed for longer periods – having an idea of the timeframe you’re working with will help you choose a fund that’s right for you.

Your Risk Tolerance

All Investment Funds can go up and down, but some uctuate more than others. With Investment Funds, there is no guarantee on your investment and returns can be negative, especially in the short term. If you’re a more conservative investor, a lower-risk fund will grow your savings at a slower pace, but without the major peaks and troughs of a more aggressive growth fund. If, on the other hand, you’re looking for higher, faster returns, you’ll need to be comfortable investing in a higher-risk fund. Investment Fund risks are disclosed in their Product Disclosure Statement.

ADVICE AT YOUR FINGERTIPS

Working through all of that criteria might seem a little daunting, which is why we created the Milford Digital Advice Tool.* This user-friendly online tool will help you choose the right Milford Fund for you. It’s super-easy to use and a great place to start your investment journey. Getting starting with an Investment Fund can be simple, visit milfordasset.com/invest to start your journey.