If you want a simple way to invest without opening accounts all over the place, investnow is worth a close look. It brings a wide range of managed funds and bank term deposits into one online platform, designed for New Zealanders. You can start small, automate contributions, and keep track of everything in one dashboard.
This guide explains what investnow is, how it works, the types of investments you can access, the pros and cons, and how to choose. You’ll also find comparisons and answers to common New Zealand-specific questions on tax, safety, and withdrawals.
What is
Investnow is a New Zealand investment platform that lets you buy and manage a selection of managed funds and term deposits in one place. Instead of signing up with each fund manager or bank, you open a single account with investnow and then choose from many providers on the menu.
It’s built for people who want:
- Access to a wide range of funds (index and active, local and global)
- Term deposits from multiple NZ banks, side-by-side for comparison
- Simple online onboarding, auto-invest options, and consolidated reporting
- NZ-specific tax settings (including PIE funds taxed at your PIR)
You don’t need to be an expert or a day trader. With investnow you pick long-term funds, set up regular contributions, and let compounding do the heavy lifting.
How it works
Account and custody
You create an account online, confirm your identity under New Zealand’s anti–money laundering rules, and set your Prescribed Investor Rate (PIR) if you invest in PIE funds. Your money is then applied to the funds or term deposits you select. Investments are generally held through a custodian on your behalf, keeping client assets separate from a platform’s operating funds. Always review the custody details and terms on the investnow website before you start.
Funding, buying, and selling
- Transfer money from your NZ bank account into your investnow account reference.
- Select one or more funds, or compare term deposits and pick a bank and term.
- Orders batch and settle according to each fund’s cut-off and pricing cycle.
- Withdrawals are requested online and paid to your nominated bank account once units are sold or terms mature.
Tax handling in NZ
Many funds on investnow are Portfolio Investment Entities (PIEs). PIE tax is calculated at your PIR (10.5%, 17.5%, or 28%) and is usually handled within the fund. That means less end-of-year admin for most investors. International equity funds held via PIEs may be taxed using New Zealand’s foreign investment fund rules (including the fair dividend rate method). Term deposit interest is generally taxed via Resident Withholding Tax (RWT). Check each product’s tax status and speak to a tax professional if unsure.
Automation and tracking
- Set up regular contributions to auto-invest into chosen funds.
- Reinvest distributions, or have them paid out to cash (where supported).
- Get portfolio reports that show holdings, performance, fees, and tax.
Many investors use investnow as their single view of long-term savings: retirement, house deposit timelines, or general wealth building.
Types / examples
On investnow you can mix and match different investment types to fit your goals and timeframe.
Managed funds
- Index funds: Track a market like the NZX 50, S&P 500, or a global share index.
- Active funds: A manager selects securities to try to outperform a benchmark.
- Conservative and balanced funds: Blend shares with bonds and cash for smoother returns.
- Bond and income funds: NZ and global fixed interest for income and stability.
- Specialist funds: Thematic, ethical/sustainable, or region-specific exposure.
Term deposits
- Choose from multiple NZ banks and a range of terms.
- Lock in a fixed interest rate for a set period.
- Useful for short- to medium-term goals where you can’t risk market swings.
When you might use each
- Short-term (under 2 years): Lean toward cash and short term deposits to avoid market volatility.
- Medium-term (2–5 years): Mix conservative/balanced funds with term deposits.
- Long-term (5+ years): Tilt to growth funds (local/global shares), with some bonds for ballast.
Example portfolios (illustrative only)
- Conservative: 20% global shares index fund, 20% NZ shares index fund, 60% NZ/global bond funds
- Balanced: 35% global shares index fund, 25% NZ shares index fund, 40% NZ/global bond funds
- Growth: 55% global shares index fund, 25% NZ shares index fund, 20% NZ/global bond funds
These examples show how you might combine funds on investnow for different risk levels. Adjust to your goals, PIR, and comfort with volatility.
Managed funds vs term deposits on investnow
| Feature | Managed funds | Term deposits |
|---|---|---|
| Main purpose | Growth or diversified long-term investing | Capital preservation and fixed income |
| Risk | Market risk (prices can go up or down) | Low risk if held to maturity; interest-rate and reinvestment risk |
| Return potential | Higher over long periods, but volatile | Lower, steady interest |
| Liquidity | Sell units (usually within a few business days) | Locked until maturity (break fees may apply if allowed) |
| Tax | Often PIE at your PIR (check fund) | RWT on interest |
| Best for | 5+ year goals, retirement, wealth building | Emergency fund, near-term goals, known liabilities |
Pros and cons
Pros of using investnow
- One login for many managers and banks
- Wide choice of index and active funds, plus term deposits
- Auto-invest and consolidated reporting make life easier
- PIE structure available on many funds for tax efficiency
- No need to place trades on an exchange or handle foreign currency
Cons to consider
- You can’t buy individual shares directly via investnow
- Fund settlement times mean no instant execution
- Analysis tools vary by fund; you still need to read the product disclosure statements
- Term deposits are locked; you trade flexibility for a fixed rate
How to use or choose
Step-by-step: getting started with investnow
- Define your goal and timeframe (e.g., house deposit in 3 years, retirement in 25 years).
- Pick a risk level you can stick with through ups and downs.
- Open an investnow account and complete identity checks.
- Set your PIR for PIE funds and confirm your RWT settings for interest.
- Transfer money from your NZ bank account.
- Choose funds or term deposits that match your goal and risk level.
- Read each fund’s Product Disclosure Statement (PDS) and fees.
- Set up a regular investment plan to automate contributions.
- Rebalance annually or when your allocation drifts meaningfully.
- Review progress against your goal, not week-to-week price noise.
How to choose funds on the platform
- Time horizon: Fewer years = more cash/bonds; more years = more shares.
- Costs: Lower fees compound in your favour over time. Compare management fees.
- Diversification: Prefer broad exposure (global + NZ) over narrow bets.
- Tax fit: Confirm PIE status and your PIR; check how international funds are taxed.
- Sustainability preferences: Look for responsible or exclusion-based mandates if important to you.
- Manager track record and process: Read how they invest, not just past returns.
Investnow versus other NZ platforms
| Platform | What you can buy | Term deposits access | Direct international shares | Who it suits |
|---|---|---|---|---|
| investnow | Managed funds (index and active) from multiple managers; NZ bank term deposits | Yes | No | Long-term fund investors who want simplicity and choice |
| Sharesies | NZ, AU, and US shares/ETFs; some managed funds | No | Yes | People who want to buy individual companies and ETFs |
| Kernel | Low-cost index funds and KiwiSaver | No | No (funds only) | Index-focused, set-and-forget investors |
| Hatch | US-listed shares and ETFs | No | Yes (US market) | Investors targeting the US market directly |
Pick the tool that matches your job: investnow for diversified funds and term deposits in one place; a brokerage if you want to pick individual shares.
FAQ
Is investnow safe?
Investnow uses a custodial structure so client assets are held separately from the platform’s own funds. Term deposits are placed with the bank you select. As with any financial service in New Zealand, check the provider’s listing on the Financial Service Providers Register (FSPR), read the terms, and understand who the custodian is. Safety also depends on the underlying product you choose (for example, market risk in share funds and the credit risk of your chosen bank for term deposits).
What fees will I pay?
You pay the fees charged by each fund (shown in its disclosure documents). Banks set their own interest rates for term deposits. Platform-level fees and features can change, so always review the current pricing and product pages on investnow before you invest.
How are my investments taxed?
Many funds on investnow are PIEs and tax is calculated at your PIR. International equities held via PIEs may be taxed under New Zealand’s foreign investment fund rules (often via the fair dividend rate method). Term deposit interest is usually subject to RWT. Confirm the tax status on each product’s page and set your PIR/RWT correctly with your IRD number.
How quickly can I access my money?
Managed funds usually settle redemptions within a few business days, depending on the fund’s rules and cut-off times. Term deposits are generally locked until maturity. That trade-off is key: match your investment to when you’ll need the money.
Can I set up automatic investing?
Yes. You can schedule regular contributions to selected funds on investnow. Many Kiwis use this to dollar-cost average and keep investing simple.
Can I invest for my kids or through a trust?
Investnow supports different account types. Availability and requirements can vary, so check the current application options for minors, trusts, companies, and joint accounts on the investnow site.
What documents should I read before investing?
- Product Disclosure Statement (PDS) for each fund
- Key terms for term deposits (including early break rules)
- Platform terms and custody information
- Fees and tax pages, plus any fund updates from the manager
Index fund or active fund—how do I choose on investnow?
Index funds aim to track the market at low cost and are widely used for core holdings. Active funds try to beat the market and cost more; results vary by manager and period. Many investors blend a low-cost index core with selected active funds they believe in.
What is my PIR and how do I set it?
Your Prescribed Investor Rate is based on your income. The current PIR bands are 10.5%, 17.5%, and 28% for individuals. Set it in your investnow account so PIE funds tax correctly. If you choose too low a PIR you may have to square up with Inland Revenue later; too high and you might overpay.
Does investnow offer advice?
Investnow is primarily a platform. It provides product information and tools, but it does not replace personalised financial advice. If you want advice that considers your full situation, talk to a licensed financial adviser.
Quick tips for New Zealand investors using investnow
- Match your investment to your timeframe first, then optimise costs.
- Use auto-invest to remove the guesswork and benefit from compounding.
- Keep enough cash or very short term deposits for emergencies.
- Rebalance on a schedule, not based on headlines.
- Focus on total portfolio performance after fees and tax, not single-fund winners.
Bottom line
For many Kiwis, investnow is a clean way to build and manage a diversified portfolio of funds and term deposits without juggling multiple logins. It keeps the mechanics simple so you can focus on choosing the right mix for your goals. Read the disclosures, set your PIR correctly, and stick to a plan you can live with through good markets and bad.