Quick Summary
You can start investing with very small amounts in New Zealand, often as little as $5, using platforms like Sharesies. These platforms allow you to buy fractional shares and are ideal for beginners looking to invest in ETFs or index funds.
Details
Starting Your Investment Journey in NZ with Small Sums
It's entirely possible to begin investing in New Zealand even if you only have a small amount of money to spare. Platforms like Sharesies have made investing accessible to everyone, allowing you to start with as little as $5.
How Sharesies Works:
- Fractional Shares: With Sharesies, you can purchase portions of shares, meaning you don't need a large sum to buy into popular companies.
- Low Minimums: There's no minimum deposit to open an account, and while Auto-Invest has a $5 minimum per transaction, you can invest smaller amounts manually if preferred.
Best Investment Options for Beginners:
- ETFs (Exchange-Traded Funds) and Index Funds: These are highly recommended for new investors. They offer diversification by spreading your investment across a wide range of companies, which helps to reduce risk.
Building Wealth Over Time:
- Invest What You Can Afford: There's no pressure to invest large sums or even invest regularly. Start with an amount you're comfortable with and gradually increase it as your financial situation allows.
- Micro-investing: This strategy is about building wealth steadily over time through small, consistent contributions. With the right approach, anyone can start building their investment portfolio.