Investment Frequently Asked Questions

Here at Diligent Wealth we have all the answers to commonly asked questions, our experts have the knowledge to inform on any query you may have. If you can't find an answer below then please get in touch here.

Can I switch my investment between fund providers?

Yes, your funds are not locked into any provider that we recommend. Diligent Wealth are constantly reviewing investment providers and their funds performance, we can help guide you with where your money will be working hardest for you.

Can I earn more than a regular savings account or term-deposit?

Currently with bank interest rates at historically low levels, you will find that the bank will not offer much on your savings or term-deposits. We have a large range of investment options that will likely see much higher returns enabling you to achieve regular income goals or retirement savings goals. Talk to us today to find out where we can make your money provide more favourable returns than the banks.

How do I withdraw funds?

Depending on the provider that your funds are invested in we can help you with the correct forms and liaise with the fund provider on your behalf once we have your signed instructions.

How are my funds protected?

Depending on the provider we end up investing your funds with, your funds are generally held in an independent custodial account operated by a third-party, who have been appointed to provide custody services to the particular provider. This ensures that there is complete separation of client assets from Diligent Wealth as a business. The custodial account is also made to ensure that all assets, including the bank accounts, are ring-fenced from the particular custodian’s business. The custodians monitor the investments made ensuring they are consistent with what investors should expect. The custodians are usually audited annually along with reporting required by the FMA.

What’s the risk of investing?

All investment carries risk, there is a risk that the returns may not meet expectations, or you may incur some short-term losses or even loss of capital. Some level of risk must be accepted in order to achieve your goals. At Diligent Wealth we will help you assess the level of risk you are prepared to take and invest your money accordingly. To find out more click here

Do I have to pay tax on my investments?

Yes, you have to pay tax on your investment earnings, however we have a range of investment funds available that are Zero-Rated PIE which means you will only pay tax at your prescribed investor rate rather than your personal tax rate, potentially saving you tax.

How do I find out my prescribed investor rate (PIR)?

Use our handy tool to find out your prescribed investor rate here.

Can I set up an investment for my children?

Yes, we have a range of investment options to suit your circumstances which will often return higher than a regular savings account or term deposit. To find out more about what we have available to invest in your children’s future wealth, click here.

What does active or passive investing mean?

See our insights page here.

Is there a minimum amount I have to invest?

Depending on the provider, yes there will be a certain minimum contribution you have to make initially. Get in touch with us today to find out how to invest your money.

What kinds of funds can I invest in?

When looking at what funds are available it can be an overwhelming task which is where we work alongside you to ensure you have the most up to date relevant information when making a decision of which fund to invest in. We have a wide range of providers that we can recommend many funds from.

Do you have ethical funds available to invest in?

Yes, we have several providers that offer ethically and responsibly invested funds. These funds don’t invest in things like weapons manufacture or production of tobacco. If responsible investing is at the forefront of your mind, get in contact with us today to find out which funds we can help you invest your money in.

How do I lodge a complaint?

In the first instance we have an internal complaints process, if you have a problem, concern or complaint then please get in contact here. If we are unable to resolve your complaint, as part of the legal requirements in New Zealand, we also belong to an external complaints scheme.

What type of investor am I?

By completing a risk profile here, you will be able to answer a number of questions that will help guide you with the type of investor you are. In general, there are five main types of investor – defensive, conservative, balanced, growth, aggressive.

Can I invest under my trust?

Yes, we do require more information to be able to do this, it is still fairly similar to the standard personal information we would normally collect. Due to the AML/CFT act we are required to ask for information relating to the “source of wealth” for trusts.  Usually this might be things like payslips, financial accounts for a business the trust owns, evidence of property or business sales or possibly inheritance details.

How will I know what my investment is doing?

All of our investment providers give regular updates on how your investment is tracking and as part of our ongoing relationship, we will continually review your investment funds to ensure that your needs are being met. 

How often do I get reports?

Most providers offer reporting on a quarterly and annual basis, here at Diligent Wealth we are available to help produce reports for you as you need them. Most providers have an online portal where you can also check your investments 24/7.

How do I set up an investment plan?

Talk to us today for a free no obligation meeting where we can discuss what your investment goals are and the options we have available to help you achieve your goals.

How much will I need when I retire?

Unfortunately, there is no straight answer here, at Diligent Wealth we are able to help you set retirement goals and assess how much you would need to start investing to be able to achieve the retirement lifestyle you dream of.