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The Financial Markets Authority (FMA) has published a helpful new guide to managed funds following research suggesting more New Zealanders are considering alternative investments because of low interest rates.

According to the FMA: An FMA survey of 195 term deposit investors last month found that 43% of them were likely to invest less in term deposits because of low interest rates. Of these, a quarter of them were considering managed funds or exchange traded funds to get potentially better investment returns.

The findings are in line with the May 2019 results of the FMA’s annual investor confidence survey, which found 56% of New Zealanders were considering making changes to their investments in the coming year.

FMA Investor Capability Manager Gillian Boyes said: “When interest rates fall, it’s natural that people start to look for alternatives to term deposits. With more people expressing interest in managed funds, we’ve developed a guide to these types of investment to help people make more informed decisions.”

With this in mind, the FMA has produced a very helpful guide to managed funds and exchange traded funds (ETFs). The new guide “Funds for Everyone” provides simple explanations of how managed funds work, including an overview of the fast-growing ETFs market.

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