Investing is tricky. We all know investing can be a great way to grow our savings, but it’s hard to know where to start and what to do. Will my investment be too risky? Who can I trust? What should I invest in? This uncertainty can make investing feel intimidating and perhaps even a bit overwhelming when you are first starting out.  

So, is there a way of dipping your toes into the world of investing before going ‘all-in’? Fortunately, we think the answer is yes, and it may feel more familiar than you realise.  

Getting invested 

One of the biggest hesitations people have towards investing is the risk of losing their hard-earned money. This often means investors leave their money with their bank; however, this is not always the best option. If you don’t need access to that money in the near term, there are other options which may enable your money to work harder for you, without exposing you to extreme levels of risk.  

One proven way to start investing is by joining an investment fund. An investment fund is just like a KiwiSaver fund, except you have easy access to your investment should you need it. You buy units in the fund and your money is pooled with other investors’ money and spread across different investments. A Portfolio Manager (like those at Milford) and their team of investment analysts will do in-depth research to choose which investments go in the fund. 

Investment funds make it easy to become an investor because you gain the benefits of a professionally managed investment portfolio, without having to do the detailed work yourself.  

A stepping stones approach to investing 

You can access a range of different investment funds depending on your risk appetite. Investment funds include very low-risk Cash Funds, all the way up to higher-risk Growth and Aggressive Funds.  

For instance, Milford offers a Cash Fund which allows you to begin your investing journey by dipping your toe in the water. 

It offers diversification for investors because it invests in several different term deposits and other low-risk securities, spreading risk across many different holdings. By comparison, a term deposit is usually one holding, with one bank.  

The Fund also offers a competitive on-call return compared to most savings accounts and it does not require you to be locked-in for any amount of time. Plus, there are no break fees should you need to access your money sooner. 

One of the other benefits of setting up a Cash Fund with Milford, is that when you feel comfortable, you can easily switch funds or open a new Milford Fund from our mobile app, as you are already in the environment as an investor. Branching out further will be straightforward, and as you get more confident, you may want to increase your fund options over time.  

If you’re not feeling confident at this stage, don’t worry, you don’t have to go at it alone.  

Getting advice 

Research by the Financial Services Council in 2020 showed that New Zealanders who seek financial advice save more, invest more, travel more and overall have improved wellbeing. It also showed those who receive advice have larger KiwiSaver balances than those who don’t and have greater peace of mind and confidence in making financial decisions. 

At Milford, we have a Digital Financial Advice Service that can help you invest with confidence. It assists you to identify your investment goals, your investment timeframe, and your tolerance for risk. It then recommends the appropriate Milford Fund for you, based on those factors. It takes the guesswork out of the fund selection process and allows you to feel assured you’re in the right fund and on the right track.  

Ready to take the next step? 

Investing doesn’t have to be scary, there are many ways to engage – you can check out the Milford Cash Fund here, our full range of funds here and you can use our free Digital Financial Advice Service here 

If you would like to talk this through with someone or if you have any questions about investing, please reach out to us – we would love to help.