This article was published on 8 April 2021. Some information may be out of date.

Low-risk funds — a good alternative to bank term deposits

(But first — a quick follow-up on share trading)

  • Defensive and conservative funds, in and out of KiwiSaver
  • Where to get info — Smart Investor tool. Look for low fees.
  • Don’t panic when balance falls a bit
  • Comparison with bank term deposits:
  • Pluses — withdrawals, PIE tax, safety
  • Minuses — fees, don’t know returns, some volatility

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Mary Holm, ONZM, is a freelance journalist, a seminar presenter and a bestselling author on personal finance. She is a director of Financial Services Complaints Ltd (FSCL) and a former director of the Financial Markets Authority. Her opinions are personal, and do not reflect the position of any organisation in which she holds office. Mary’s advice is of a general nature, and she is not responsible for any loss that any reader may suffer from following it. Send questions to [email protected] or click here. Letters should not exceed 200 words. We won’t publish your name. Please provide a (preferably daytime) phone number. Unfortunately, Mary cannot answer all questions, correspond directly with readers, or give financial advice.