Getting Started In Investing? Here Are Five Things To Think About

Tuesday, 12 May 2026, 4:40 pm
Article: RNZ

Susan Edmunds, Money Correspondent

A growing number of New Zealanders are investing in share markets as a way to build their wealth.

But what do you need to know if you're just getting started?

Here are five things to think about.

What are your goals?

A good starting point is to think about what you want to achieve with your investments.

Are you investing for your kids' education? To build a deposit for a house? Or to achieve financial independence?

Knowing what you are aiming for, and how far in the future that is, will help you devise a strategy to get there.

If you have a goal in mind, you could work backwards to determine how much money you need to put aside each fortnight or month to get there. Sometimes, automating the payments can make it easier to implement your plan.

Invest in assets that align with your risk

Generally, the longer you have until you need the money, the more risk you can take. This should mean your returns are better over the long term, but you might see the value of your investments move around a bit in the short term.

When you're investing in shares or managed funds, being able to take more risk means you can afford to put more of your money into direct share investments or into funds that invest in assets like shares.

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When you're using platforms like Sharesies you can choose to invest in companies directly or via funds, which pool your money with other investors'.

Investing in direct shares can be riskier than funds because your risk is not spread in the same way. If you invest in a company that performs well, you can achieve really strong returns, but if you invest in a company that performs poorly you could miss out, even if the rest of the market is strong.

If you don't have so long until you'll need the money, you might need to keep your money in investments like funds that are more conservative, or even money in the bank if you know you're going to need it very soon.

It helps to understand the market conditions you're investing in and how you can expect your investment to behave.

How hands on do you want to be?

It can be time-intensive to manage an investment portfolio. If you would rather not manage the task yourself, you might want to delegate it to a fund manager. You can invest in managed funds through platforms such as Sharesies, Kernel and Hatch.

Funds can be a good way to get quick diversification at a scale that is hard to achieve as a single investor.

Fees are part of your investing picture. Depending on your investments, you could be paying annual fees, transaction fees and currency fees. It's a good idea to check in on these every so often to make sure you understand what you're being charged and what you're getting for your money. Sometimes there may be other structures that are more cost-effective.

What does the rest of your financial life look like?

Your investments should fit into the wider picture of your financial life.

It might help to think about what other exposure you have. People often have a lot of investment in their own country, through a house and job, and might benefit from the diversification of investing in other countries' companies, or in different sectors.

If you have savings in an emergency fund, it may mean you can afford to take a bit more risk with your investments because you're less likely to need the money in a hurry. But if your investments are the only spare funds you have, you might need to take more care with them.

Don't panic

Once you have a strategy in place, stick with it.

Sometimes, investors get nervous when markets wobble and want to move their money to less risky options.

This can be an expensive idea because it may mean you sell at the bottom of the market, and miss out on the recovery.

RNZ

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