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3 ways to invest with very little money

Page last updated: 22 Jan 2019

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.