Relying on the interest from a term deposit to grow your savings at a desirable rate is no longer really an option. It looks like low interest rates are here to stay with term deposit rates currently hovering around 2-3% with the potential to fall further. Kiwis may need to adopt a new way of growing their wealth through managed funds and learning to embrace a certain level of risk. David McLeish who is Head of Fixed Interest in our investment team explains more on this in a short video below.
Determining whether you should include managed funds as part of your investment strategy is easy once you are able to answer these 3 key questions:
- What level of risk are you comfortable with?
- What is the timeframe of your investment?
- What is the goal you are working towards?
These questions may seem daunting, but we have an experienced team of advisers who will be able to help you find your way and help determine if managed funds may be suitable for you, feel free to get in touch on 0508 FISHER or via email. We also have a handy online Investor Profile Questionnaire that will allow you to find an investment strategy that works for you.
Long-term investment and active management
Our New Zealand Growth Fund is a great example of what can be achieved through investing in a long-term investment, embracing a certain level or risk and benefiting from Fisher Funds’ active management expertise.
If you had invested $10,000 in 1998 when the fund first started, it would be worth $127,938 as of 31 May 2020, compared to $83,246 based on the return of the S&P/NZX 50 Index Gross.*
As you can see in the graph below, there have been periods when the performance of the fund has been negative, but by developing an investor’s mindset, investors who were comfortable with the level of risk in the fund and remained invested through the volatile periods experienced significant growth in the long term.
For more answers to questions like this as well as insights from our investment team, visit our video library.
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How we invest
The bedrock of our investment process is a philosophy or set of beliefs that set out what we believe drives share prices, where best to look for investment opportunities and how we should organise ourselves to identify and profit from these opportunities.
Download 'Building Greater Lifetime Savings: An Introduction To How We Invest In The Share Market'