Research investments before you make a decision. Think about how they fit in with your investing plan and don't be tempted to invest in something you don't understand just because others are doing it.
Learn about different ways to invest - how investments work, their risks, and whether they might be right for you.
Our research shows retirees with a plan are far more likely to enjoy the kind of lifestyle they want. Whether you're investing for retirement or something else, having a plan means:
You'll know whether to look for investments with short, medium or long-term growth potential
Any fee you pay reduces the return you could make. Even small sounding differences can make a big difference to the returns you'll receive in the longer term.
Different investments have different types of fees so it's important to read the product information to understand these.
Our costs involved in investing page explains more about how fees stop your money growing.
Past performance is not an indicator of future performance. Investments go up and down in value. If an investment did well last year, it may do poorly this year.
Focus on finding investments that fit well in your overall plan and that fit your risk level. Find out more about what good performance looks like.
Having a mix of different types of investments smooths out the ups and downs of investing and reduces the risk of losing money.
Some types of investments such as managed funds offer diversified fund options. This means diversification is done for you.
Keeping track of your investments can prevent little things from turning into big problems. Review the statements and reports you must be sent and keep an eye out for warning signs that all may not be well your investment.
Learn more about how to manage your investment.
If markets go down stay calm. Remember if you’ve planned well, diversified your portfolio, and you’re keeping an eye on your individual investments you should still be on track to meet your goals in the longer term.
It is normal to be nervous if a market downturn affects your investment balance – in fact, human brains are hard-wired to fear losses. Talk to a financial adviser or your product provider might help you avoid making a decision that will crystallise (lock-in) a loss.
A financial adviser can help you with each step if needed. We also have a range of downloadable resources available and you can learn more about investment options on Sorted and at Invested, an investor education video series created for New Zealanders by the NZX and the Commission for Financial Capability.
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