A SMART I NVESTMENT
An investment fund with a reputable provider is a smart and affordable way to dip your toes into the investment game
As anyone saving for a house, a wedding or simply their retirement will know, it can be disheartening calculating just how long it can take to make significant savings. And despite DIY investment platforms proving popular recently, if you’re not exactly au fait with market trends, wading into the world of investing can be intimidating. Fortunately, there’s an astute way to save, and it needn’t involve crippling outlays or deep knowledge of stock prices. Contributing to investment funds that are actively managed by a team of experienced financial experts could be the difference between slavishly saving a portion of your income, and leveraging it to grow. Viva spoke to Milford, a highly respected financial provider, making it accessible and affordable for new investors to get ahead.
Why would I have an investment fund versus money in the bank?
You hear the overused phrase in the industry: “get your money working hard for you”. Well, this is basically it. With an investment fund at Milford, your money is invested and actively managed by a team of investment experts with the aim of growing your money. It can come with higher risk than a bank deposit, but if you have time to accept the ups and downs, then investing your money is a great way to provide for your future or grow your savings for a particular life goal.
What age should I think about an investment fund?
In short, the sooner the better. By starting early, you can benefit from compounding returns. Compounding is when you earn a return on top of the returns your investment has already earned — this is how you really start to get your money working hard for you. In the longer term, it has the potential to increase the value of your investment significantly. And the more you add and the longer you leave it invested, the more it can grow. Also, with Milford’s initial investment of just $ 1000, getting started with a professional fund manager is now more accessible to younger investors; you might even consider setting up an investment fund for someone under 18, giving them the opportunity to grow their money while learning about investing too.
How do I know which fund is right for me?
There are different types of investment funds that suit different investment goals, timeframes and how much risk you are willing to take on. For example, lower-risk funds will aim to produce lower, but more predictable returns. On the other hand, higher-risk funds will aim to grow your money more strongly but are more unpredictable. Try to match your fund choice with your own reasons for investing. Be aware that no matter the type of fund you choose, your investment can lose value. It’s important to remember that investments are a longterm thing; they will go up and they will go down — the key is to hold the course once you have set your goals in place. Milford’s Digital Advice Tool can help you identify a Milford investment fund that might suit you. You can find the tool on Milford’s website.
What’s the difference between a KiwiSaver fund and an investment fund?
Investment funds are very similar to KiwiSaver funds except you don’t have to wait until you buy your first home or retire to access your money from an investment fund. You can withdraw at any time and each fund has its own recommended minimum investment period, which makes it great for shorter- term financial goals like saving for a home renovation or planning a big trip or to support your children later on. It is definitely worth considering having an investment fund alongside your KiwiSaver Fund, if you can.
Why should I use an investment company over doing it myself?
You can invest directly in the share market yourself, but it does require time, research, knowledge and confidence. The beauty of an investment fund is it is managed by a fund manager with an investment team who review, research and analyse companies and market trends on your behalf. This means you benefit from their years of combined financial expertise and experience with very little effort of your own! The added bonus is that you can learn as you invest by keeping an eye on the decisions that are made on your behalf. With that in mind, the smartest way to start on your investment journey is to start today. Consistently and regularly investing what you can afford, using the fund best suited to you, and having it managed by experts such as the team at Milford, could be the difference between having ‘ just enough’ in the future and fulfilling your financial goals. Holiday in Italy, anyone?
Discover how Milford can help you invest your money at Milfordasset.com
Disclaimer: This advertisement is intended to provide general information only. It does not take into account your investment needs or personal circumstances. It is not intended to be viewed as financial advice. You should not rely on any information in this communication in making financial decisions. Before making financial decisions, you may wish to seek financial advice. Past performance is not a reliable indicator of future performance. Read the Milford Investment Funds Product Disclosure Statement as issued by Milford Funds Ltd at milfordasset.com. For more information on our financial advice services visit Milfordasset.com/getting- advice.