You can invest in a range of companies, exchange-traded funds (ETFs) and managed funds on Sharesies. 🙌
Companies and ETFs are traded on an exchange. ETFs can be actively or passively managed.
Managed funds (called ‘mutual funds’ in the US) have a fund manager who chooses what’s included in the fund based on a given strategy. Any buying or selling of units in the managed fund goes through the fund manager. KiwiSaver is an example of a managed fund, where money is pooled together and invested on the investors’ behalf, by a fund manager. There’s a range of New Zealand managed funds available to invest in on Sharesies.
When you invest in a company, the amount that you’re investing is put into that one company. When investing in a fund, the amount that you’re investing gets spread out amongst a bunch of companies.
Risk levels differ when investing in companies and funds. Diversifying your Portfolio is one way to manage risk. Read about diversification on our blog.
Order processing times also differ between orders in companies and funds.
Extra handy info
Managed funds and ETFs: