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InvestNow review: Invest in Global and NZ Managed Funds
Your guide to the features and fees of InvestNow, the online investing platform that provides access to over 150 managed funds.
Launched in March 2017, InvestNow is an online investment platform based in New Zealand. It allows Kiwis to invest in more than 150 NZ and global managed funds online, plus provides access to term deposits from 6 banks.
If you’re thinking of signing up for an InvestNow account, keep reading for our review of InvestNow’s features, fees, and pros and cons.
What can I invest in with InvestNow?
InvestNow offers access to two types of financial products:
- Managed funds
- Term deposits
If you want to invest in managed funds, you can choose from more than 150 funds from 26 fund managers, including:
- AMP Capital
- Devon Funds
- Fisher Funds
- Harbour Asset Management
- Nikko Asset Management
- Pie Funds
- Russell Investments
You can choose to make either a one-off investment or set up a regular investment plan. The available funds target the following sectors and asset classes:
- Australasian equities
- Cash and cash equivalents
- International equities
- International fixed interest
- Listed property
- New Zealand fixed interest
You can also use the InvestNow platform to access term deposits from the following banks:
- China Construction Bank
- Heartland Bank
- SBS Bank
- Bank of China
Terms range from one month to five years and you can set up a term deposit without having to open an account with the bank in question.
What features does InvestNow offer?
InvestNow offers the following features to Kiwi investors:
- Free to use. InvestNow doesn’t charge any transaction or administration fees to customers. Instead, fund managers pay a fee to InvestNow to have their funds listed on the platform.
- 24/7 online management. As long as you have an Internet connection, you can manage your investment portfolio online whenever you want.
- Monthly fund performance data. InvestNow customers can access monthly performance report data for the funds available on the platform. You can also access historical performance data going back up to 10 years, and log into your account to check the current value of your portfolio.
- $50 minimum investment. You can invest as little as $50 when you set up a regular investment plan. This makes the platform accessible to everyday investors, and allows you to invest in funds that normally have a higher minimum investment amount.
- Regular investment plans. You can make a one-off investment through the platform or set up an ongoing investment at a frequency of your choice.
How much does InvestNow cost?
InvestNow doesn’t charge any account setup or transaction fees. However, fees are charged by the fund manager of the fund(s) you invest in. Fees vary depending on the fund you choose and range from 0.20% to 3.26% of your investment amount. Make sure you read the fund PDS closely for full information of all the fees that will apply to your investment.
It’s also important to be aware that InvestNow imposes minimum limits on the amount you can invest. The minimum limit is $250 for a one-off investment, or $50 as part of a regular investment plan.
Pros and cons of InvestNow
- Access to a wide range of funds. You can choose from over 150 funds from 26 fund managers.
- No transaction or account fees. InvestNow doesn’t charge any transaction or administration fees.
- Low minimum investment amount. InvestNow allows you to invest as little as $50 when you set up a regular investment plan, or $250 if you’re making a one-off investment. This makes it easily accessible for small or first-time investors.
- Term deposits also available. You can also access term deposits from six different banks through the InvestNow platform.
- Fees apply. You’ll need to check the disclosure details for any managed fund you’re thinking of investing in for full details of any fees that apply.
- May be overwhelming for novice investors. The sheer range of funds on offer and the nature of managed funds may make InvestNow a little intimidating for anyone new to investing.
- No mobile app. InvestNow doesn’t offer a dedicated mobile app.
Is InvestNow safe?
A registered financial services provider, InvestNow is based in Wellington and is a wholly-owned subsidiary of Implemented Investment Solutions.
Any investments you make in InvestNow are held on your behalf in the name of a custodian rather than being owned by the platform. Your money cannot be used to run InvestNow and can’t be touched by creditors, so if the company shuts down, your money is protected.
This custodian is Adminis Custodial Nominees Limited and is audited annually by PWC to assess procedures and controls.
For security on your account, InvestNow has the following procedures in place:
- Two-factor authentication to log in to your account
- Encryption for sensitive information
- Layers of firewalls and intrusion prevention devices
- Routine security assessments by a third party
How do I sign up to InvestNow?
To sign up to InvestNow, head to the website and click ‘Join’ in the top right corner. You can choose to sign up as an individual, trust, joint application or company, and then enter your email, name and password to register.
You will need to verify your identity which can be done either online or offline. The Cloudcheck service is used to verify your identity online – you will need to supply the details of your current passport or driver’s licence.
You will need a NZ bank account and IRD number. If you are a foreign tax resident you will need to provide your countries of tax residence and foreign Tax Identification Number.
You can also set up an account for a child. You will need to supply:
- An email address for the child
- Proof of ID
- Proof of address
- Tax details
If you’re searching for a simple way to invest in managed funds, InvestNow is well worth a look. It offers access to a diverse range of funds from a range of leading fund managers, while the fact that it doesn’t charge any fees is certainly a plus.
That said, it’s far from the only platform out there designed for mum and dad investors. Some platforms also allow you to invest in shares and ETFs on NZ and overseas markets, so it’s worth comparing your options before deciding on the right investment platform for your needs. As a starting point, check out our InvestNow vs Sharesies vs Smartshares guide.
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