The basics of investing

All investing involves some level of risk and there’s no right or wrong level.

• Higher risk can mean higher potential returns — and bigger ups and downs
• Lower risk usually means steadier, but smaller, returns.

You can work out your risk profile with Sorted's Investor Kickstarter tool.

Investing isn’t just about making money; it’s about supporting your life goals.

Each goal has its own timeframe, and that can help guide the types of investments you might consider. For example, shorter-term goals like buying a car or going on holiday may be approached differently to longer-term goals like saving for a house deposit or planning for retirement.

If you’re not sure where to start, Sorted groups goals by timeframe: short-term goals are one to three years, medium-term are four to nine years, and long-term are 10 years or more.

You don’t need to have everything mapped out from the start. Even a rough goal can help you make more intentional choices.

Putting all your money into one investment can be risky. If that investment performs badly, you could lose a lot or even all of it.

That’s why diversification matters. In simple terms, it means spreading your money across different types of investments, so you’re not relying on just one outcome. You can choose an approach that feels manageable and fits your situation.

This could include a mix of:

• Cash and savings
• Property
• Shares or funds.

You don’t need a large amount of money to diversify. Some investment options spread money across many assets for you.

You should feel informed and comfortable about where you're investing. If you don’t understand how an investment works or where your money is going, it’s okay to pause or walk away.

Ask questions if you don’t understand something. Take time to read the product disclosure statement and make sure you understand the fees, timeframes and risks.

A good provider or adviser should be able to explain things clearly, without pressure or jargon. If something can’t be explained simply, that’s a sign to slow down.

Understanding common investing terms can make it much easier to get your head around investing.

You can start by using plain‑English resources like Sorted, which explains investing concepts clearly and without jargon.

Personal finance blogs, podcasts and social media can also be helpful if they suit the way you like to learn. It's worth exploring different perspectives before making decisions, as not everyone sharing investment information online is a financial expert. For more tips on staying safe when getting money advice online, visit fma.govt.nz.

A good financial adviser should explain things clearly, at your pace and support you to understand your investing options.

Scams are becoming more sophisticated and can look very convincing. If an investment sounds too good to be true, it probably is. Be cautious if:

• You’re contacted out of the blue about an “amazing” opportunity
• You’re pressured to act quickly
• The focus is on big returns with little or no risk.

Test your scam defences and become a scammer's nightmare.

The Financial Markets Authority’s website lists scams that have been reported. Note: this isn’t a comprehensive list, just because you don’t see the person or company you’re talking to on there, doesn’t mean they’re legitimate.

These options can suit different needs and timeframes, and you can explore them at your own pace. Compare our investment options.

Online Call account gives you full access to your money anytime while still earning interest on the remaining balance without penalties.

Notice Saver is a flexible investment option. You can add money anytime, then give us 32 or 90 days’ notice to withdraw funds.

Term Deposits earn a fixed rate of interest for a fixed term. There are no charges unless you break the deposit early. Rates tend to be higher than everyday savings accounts.