Kernel Wealth Review: Invest in NZ indexes
Make straightforward investments in index funds on this easy to use platform.
Kernel Wealth is an online investment platform focused on simplicity and flexibility. It offers a selective handful of indexes, with an emphasis on higher risk investments for growing wealth and generating passive income, rather than defensive investing.
What can I invest in with Kernel?
Kernel offers three different indexes. Each of them is composed of a basket of different assets, letting you invest in a different aspect of New Zealand’s economy.
The available indexes are:
- NZ20. The 20 largest listed companies in New Zealand. These companies represent a diverse range of industries, and include household names like a2 Milk and Air New Zealand.
- NZ level 9. An index of smaller, but still quite large, New Zealand companies with a market capitalisation of between $100 million and $1 billion. While encompassing a diverse range of industries, it leans towards real estate and consumer goods.
- NZ commercial property. A basket of eight different real estate investment trusts, encompassing over 300 properties across New Zealand including office buildings, industrial estates and shopping malls.
You can mix and match these to create a combination portfolio, as well as set up automatic investments into your chosen balance of portfolios.
How much does it cost?
Kernel Wealth has two types of fees:
|Member fees||$3 per month|
No member fees for account balances below $100
|Investment fees||0.39% of your total account balance per year if your balance is from $1 to $24,499|
0.29% of your total account balance per year if your balance is $25,000 or more
Is Kernel safe?
Kernel Wealth manages your funds under the supervision of Trustees Executors Limited, New Zealand’s oldest trustee company. Assets are custodied by Adminis NZ Limited, a Wellington-based finance company. When you use Kernel your assets are protected by New Zealand law.
All investments still carry some risk though, and between Kernel’s three portfolios it is not possible to diversify investments to the same extent as is possible on other online share trading platforms.
What customer support options are available?
Kernel Wealth offers a help centre where you can search for frequently asked questions, or you can contact the team by submitting messages through the website, email or over the phone.
How do I sign up to Kernel?
Kernel is available to people in New Zealand aged 18 and older.
To get started, you can sign up for an account on the website. This involves entering and verifying your email address, and choosing a password. You will then have to provide some identification and personal information.
From there, you can make deposits into your Kernel wallet to purchase units of the desired index, as well as set up auto invest on your account to automatically make weekly, fortnightly or monthly purchases of your desired indexes.