31 August 2022

Top investing do’s and don’ts

4 things to think about before investing

  • Make sure that you're dealing with a licensed provider. See our Licensed providers page.
  • Research a product before investing and think about the impact of fees before choosing an investment. If you can't work out how fees are charged, ask the question and don't hand over money until you're satisfied.
  • Plan and invest based on your future needs and goals.
  • Understand the benefits of long-term, regular, diversified investment.

3 things to avoid

  • Avoid "get rich quick" and "can't lose" schemes. If it sounds too good to be true, it probably is!
  • Unsolicited offers. It is illegal to sell financial products through a cold call or other unsolicited communications in New Zealand. If you receive a call, letter or email from a stranger about an investment opportunity, hang up or ignore it.
  • Offshore, online businesses. The FMA only regulates financial services operating in New Zealand. It is often impossible to recover your money if an overseas investment turns out to be a scam.

Mary Holm, who's been demystifying personal finance for Kiwis for several decades, in books, columns and on the radio, has written an investing guide for the FMA, setting 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.

Download the Hits and Myths booklet