Three ways to invest with little money
Page last updated: 17 December 2020
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.