The longer your investment timeframe, the more the value of your investments can compound upwards and grow. Regularly adding to investments can greatly improve the results. If you reinvest your returns or constantly drip feed more money into your investments you will see the highest growth.
Track your investments
Review your investments at least once a year using the various reports investment providers publish. Even if you have an investment adviser, it’s important you read them yourself. Our ways to invest pages explain the reports you should receive.
Don’t panic if your investment value falls
This is a normal part of investing. Reacting by making changes when the value is low will often make things worse. Keep your end goal in mind. If your goal is mid-term to long-term, it’s likely you’ll have enough time for your investment to regain value. You may want to get advice from a financial adviser.
Keep an eye out for warning signs
While there’s no guaranteed way to spot losses in advance, there are warning signs that an investment may be heading downhill.
Take action if there is a problem
If you have concerns about your investment, talk with your adviser or product provider.
If you’re not sure about what they’re telling you, or your concern is with them, contact us.
Investing in financial products like shares, bonds, funds and KiwiSaver are all ways to grow your wealth. Regularly putting a little money aside today can reap rewards later in life.
Investing isn’t risk-free. In fact, if there’s one single truth, it’s that no investment is risk-free. That’s why the proverb ‘Don’t put all your eggs in one basket’ is especially true in investing.
In this booklet written by Mary for the FMA, she sets the record straight on eight common myths about investing. It’s a quick guide for anyone who’s thinking about or already dabbling in investing – and wants to know more.
Below you will find common warning signs to keep an eye out for:
Your investment provider (including any company you have purchased bonds in) may delay or stop making payments due to you. Contact them immediately to find out what is happening.
While occasional under-performance is normal, if your investment is consistently underperforming, you should compare its return to other similar investments.
Mistakes, delays, audit qualifications and controversy over accounts can all be warning signs. Accounting rules can be complex and genuine errors or differences in views do occur, but repeated issues may indicate deeper problems. Read more about audits.
Director and senior management in-fighting, resignations, breaches of the law or unethical conduct can be warning signs. Changes in management may be necessary, but it could distract the management's attention from running the business.
While even the best managers can make mistakes, lack of communication and falling service standards may point to something being seriously wrong.