Investing may seem intimidating at first—a game for the wealthy, with a dizzying number of equities to choose from. The fear of losing money often stops people before they even begin.
But here’s the truth: you don’t need to be an expert to start investing. You just need a plan.
One of the easiest ways to take the first step is with a Generate Managed Fund. With our expert fund managers handling the heavy lifting, you can start growing your wealth without needing to track the markets daily. Whether you're investing for retirement, saving for a future goal, or simply looking to make your money work harder for you, investing is one of the most effective ways to build financial security over time.
So if you’ve already got your KiwiSaver account sorted (if not, click here to get started!), and you’re ready to take the next step, read on to discover how a Managed Fund could help you reach your investment goals—and bring you closer to a stronger financial future.
Why start investing?
- Beat Inflation: Keeping money in a savings account or term deposit with a bank will only earn your interest, usually with a fairly low-modest rate of return. Saving money this way doesn’t often keep up with inflation, so the purchasing power of your savings can shrink over time. Investing is a way to outpace inflation and grow wealth over the long term.
- Achieve long-term financial goals: Investing is a way to help reach your money goals faster, whether you’re saving for a dream trip, funding education, or enjoying a comfortable retirement.
- Flexibility beyond KiwiSaver: You may have retirement goals that go beyond what KiwiSaver alone can provide, or you may want to use your money before you turn 65. Investing outside of KiwiSaver can help supplement your retirement savings.
- Make your money work for you: Instead of trading hours for dollars, investing allows your money to generate returns while you focus on living your life.
How does a Managed Fund work?
When you invest in a Managed Fund you buy ‘units’ in the fund. Each unit represents a share of the overall value of the fund. The unit price on any given day is how you know what your share of the fund is worth.
Your money is pooled with all the other money in the fund and invested by our team of expert fund managers in local and international markets.
The value of units in a Managed Fund changes as the value of the financial assets it is invested in increases or decreases. The difference between the unit price when you contribute to the fund and the unit price when you withdraw from it is your investment return.
Benefits of a Managed Fund
- Expert management: A managed fund pools money from different investors, large and small, to be invested by a skilled team. Rather than worrying about picking individual equities or bonds yourself or trying to time the market, our expert investment team at Generate do the hard work for you. Generate’s experienced team of investment professionals actively manage the fund and have a proven track record of strong long-term performance.
Read more here to find out about active versus passive investing.
- Diversification: You’ve heard the saying, “don’t put all your eggs in one basket.” One of the key advantages of a managed fund is that your money is spread across a wide range of investments, reducing risk and helping smooth out the ups and downs of the market.
- Flexibility: One of the great advantages of investing in Generate Managed Funds is the flexibility it offers. You’re in control of how much you invest and how often. You can even set up a direct debit for automatic investments on a weekly, fortnightly, or monthly basis—whatever works best for you.
You also have the freedom to choose from a range of Managed Funds, depending on your investment goals and risk appetite. Generate currently offers five Managed Funds, each with a different investment strategy and suitable for varying time horizons and risk levels. For more details on our fund options, click here or refer to the Managed Fund Product Disclosure Statement.
Even better, your money is accessible whenever you need it. Unlike KiwiSaver, there are no restrictions on withdrawals—you can make a lump-sum withdrawal or set up regular withdrawals to suit your needs.
How much will a Managed Fund investment make?
The returns on a Managed Fund investment depend on several factors, including:
- The fund type you choose – Different funds have different risk levels and potential returns. While returns are not guaranteed, higher-risk funds (like the Generate Focused Growth or Thematic Managed Fund) typically have higher return potential over the long term, while lower-risk funds (like the Generate Conservative Managed Fund) aim for more stability with lower returns.
- How long you invest – The longer you stay invested, the more time your money has to grow and compound. Historically, long-term investors see better returns than those who try to time the market.
- Market performance – Investment values naturally fluctuate due to economic conditions, interest rates, and global events, but history shows that markets trend upwards over the long term. Despite major downturns—including world wars, the Global Financial Crisis (GFC), and the COVID-19 pandemic—markets have recovered and continued to grow. Staying invested through short-term volatility is key to maximising long-term returns.
- Your investment contributions – Making regular contributions to your investment, even small ones, can make a big difference over time. Thanks to compound returns, the earlier you start, the greater your potential growth.
While past performance doesn’t guarantee future returns, you can see how each of Generate’s Managed Funds has performed since inception here.
Ready to start investing in Generate Managed Funds? How to get started
1. Set your goals: Think about what you're investing for—whether it’s a rainy day fund, a dream trip, new house or boosting your retirement savings. This will help you choose the right investment strategy for your needs.
2. Choose your fund: Generate Managed Funds offers a range of options depending on your risk tolerance, time frame and investment goals. You can see the options here, and sign up yourself or you can have a no-obligation chat with one of our advisers, who can talk you through everything you need to know.
3. Apply online: Getting started is quick and easy—simply complete your application online in a few minutes.
4. Invest regularly: While not compulsory, we recommend investing regularly. Even a small, regular investment can grow significantly over time due to the power of compound interest. Set up automatic monthly contributions to make it easy
5. Leave It to the experts: Once you’ve chosen your fund and set your contributions, sit back and let Generate’s expert team manage your investments.
You’ll receive an annual report on your fund performance via email, and you can also opt in to our monthly newsletter which keeps you in the loop about fund performance and other important news. It’s easy to track your progress online, giving you full transparency, via our website or our handy Generate app.
Common questions
Do I need lots of money to start investing? No! Many people think investing is only for the wealthy, but that’s not true. With Generate Managed Funds, you can start with smaller amounts (from $100!) and gradually build your wealth over time.
Is it safe? All investments come with some degree of risk and your balance can go up and down in value – this is a normal part of investing. But a well-diversified portfolio can help to reduce the impact on your funds. Generate has an experienced team managing the fund to help navigate the ups and downs of the market. We take a long-term approach to investing, so that market volatility is smoothed out over time. Remember that investing is not a ‘get-rich-quick’ scheme and should be approached with a long-term view in mind.
Start today, secure tomorrow
Investing doesn’t have to be complicated or reserved for the super-rich. It’s about taking small steps to grow your money over time. By choosing a Generate Managed Fund, you can make the most of your savings with minimal effort, while having the confidence that trusted experts are managing your money. Start small, stay consistent, and watch your wealth grow.