A new KiwiSaver scheme introduced by the fast-growing investment platform, InvestNow provides more opportunity for investors to spread their KiwiSaver investments between multiple fund managers.
Launched in 2017, InvestNow offers investment into at least 140 managed funds managed by over 20 leading managers, with no platform fee. This Wellington-based investment company offers many different investment options from passive, cash-based investments and index funds to active funds in property and emerging markets.
InvestNow has officially launched into the KiwiSaver market, providing a scheme for DIY investors which was launched yesterday, on the 13th of October. For the first time, Kiwis can now pick different investment options with multiple fund managers at the same time.
More flexibility for investors
InvestNow’s ‘build-your-own’ KiwiSaver scheme gives members a lot more control of the investments they have in their KiwiSaver account. They can now choose from 28 different managed funds from 9 expert fund managers including Milford, AMP, Harbour, Russell Investments and more.
Founder, Anthony Edmons said that “the broad choice breaks the traditional KiwiSaver mould, where providers often only have one manager’s fund available.” It means that a member could further diversify their KiwiSaver investments by choosing funds with different management styles as well.
Mike Heath, the general manager of InvestNow feels that “As people’s KiwiSaver grows to become one of their largest financial assets, so does the desire to have greater control and flexibility over it” which is reflected in their new KiwiSaver scheme. He noted that there will be more investment options in the future for investors, as this is only the beginning.
What are the fees like?
With an underlying fund fees ranging from 0.27% p.a to 1.53% p.a, InvestNow offers no administration fees as they believe that “Kiwi’s should get to keep their hard-earned dollars for when they need it most – retirement.”
Since InvestNow does not charge an administration fee, it makes its money by charging fund managers for hosting their KiwiSaver funds on InvestNow.