Investing in New Zealand

It is important before investing that you understand your objectives and what you are trying to achieve. You will need to consider:

• What returns you expect to receive?
• How long you can stay invested?
• What sort of risks are you willing to take?
• How much volatility can you bear in your investments?
• Your tax position, and 
• The tax situation on the investment

A good investment adviser will take the time to explain your options to you, and make sure that you understand both the nature of the investment and any charges.

Please note that many investment advisers and banks may only offer their own investment products or a limited range of investment products – they should make it clear to you if this is the case.

Our top tips for investing:

1. Understand your investments – there is plenty of hype out there, but it is really important that you understand what you are investing in. Never be afraid to ask questions.

2. Understand your personal attitude to risk – there is always an element of risk in investing, as there is in stuffing your money under the mattress! Some investments are more risky than others, and you need to be comfortable with what you choose to invest in, and to review your investments periodically as your circumstances change.

3. Diversify – your investment needs to be well spread both across different industry sectors and internationally.

4. Make sure that you know what the charges will be – charges can really eat into your investment return, especially if the markets are not particularly buoyant.

5. Take your tax position into account – make sure that you understand how much tax you will be liable for on your investment. With some investments, tax payments are organised by fund managers, but with others you need to pay the tax yourself.