Three ways to invest with little money

Many people think you need a lot of money to invest. But here are three easy ways to invest even if you only have a small amount of money.

1. Enrol in KiwiSaver

• Despite its name, KiwiSaver is more than a savings account – it’s an investment.
• You don’t need any money to get you started and once you’re enrolled you can choose how much you’ll contribute each payday.
• Money is deducted automatically from your salary making it easy to grow your balance over time. Your employer will even contribute too!
• Most KiwiSaver funds invest in a mix of cash, bonds, property and NZ and international shares. 
• Like any investment, your balance will go up and down over time, but in the long-term should grow more than a savings account would.
• Find out more about how KiwiSaver works.

2. Invest in a managed fund

• Managed funds typically do require an initial minimum deposit (ranging from $250 up to many thousands of dollars), but some also offer regular investment plans that let you start with much smaller amounts (such as $50), provided you sign up to make regular contributions.
• Like KiwiSaver, managed funds typically invest in a mix of investments including cash, bonds, property and shares. You can also invest in single-sector managed funds. This can be a great way of investing in assets you’re not able to access so easily in New Zealand – for example, a global share fund. 
• Find out more about managed funds.

3. Buy units in an ETF

• ETFs or Exchange-traded funds, are a type of managed fund but are traded on the stock exchange. This means you can buy and sell units in an ETF based on the available price, just like shares.
• ETFs also often have lower entry amounts and lower fees than traditional managed funds.
• ETFs can be purchased through a broker or through online platforms – for example, one offers entry from as little as $5. Find out more about ETFs.