Lots of people believe that if you want to invest any money it’s only possible with a big amount at the start. Yet, it’s not true though, as there are three effective and payable ways of investing a little money too. Let’s find out what the ways are and how to use them to earn not lose.
KiwiSaver as your retirement scheme
When New Zealand introduced KiwiSaver in 2007, citizens got a chance of investing in their future. KiwiSaver is not a usual savings account, but an investment into a comfortable retirement.
When you decide to enrol in KiviSaver NZ you have to decide how much money should be deducted from your salary each month. Once you set the amount, it will be automatically deducted from your bank account. It’s only your salary that will help to grow your balance, as the employer and the government will also contribute.
It’s a great way of saving money for the time when you retire. If you are eligible, you may withdraw the money from the account when you’re over 65. After at least three years of eligible funds, you may use the up to $10,000 to buy your first home.
Invest in a managed fund
Managed funds, similarly to a KiwiSaver, invest in shares, bonds, property, and cash. It’s also possible to invest in single-sector managed funds, for example, global share funds, not easily accessible in New Zealand.
You will need a minimum $250 deposit just to start, up to thousands of dollars. Sometimes it’s possible to start with $50 even when you sign up to make regular contributions.
Invest in an ETF
There is another form of managed funds, this time they are called ETF’s, or Exchange-traded funds. The main difference between them and the managed funds is that they’re traded on the stock exchange.
It’s possible to sell and buy units in an ETF, for the prices available. ETF are more payable as for them you need lower entry amounts, and lower fees will be taken from you for using them. If you want to buy EFTs, find a broker or use websites.You don’t need more than $5.
As with any funds, there are risks connected with this form of investment. One of the risks s the fact the returns may be lower than the return on the index it is following. The situation is called a tracking difference, and is connected with the timing issues.