PDA

View Full Version : Investing for grandchildren



karen1
16-09-2010, 04:43 PM
Hoping someone has a bit of advice here - wanting to make long term investment for four grandchildren, and am wavering between shares and managed funds.
Initial investment will be only a few hundred dollars, and if going to managed fund there will not be regular contributions. Any advice much appreciated.

peat
16-09-2010, 05:20 PM
with only a few hundred dollars your choices will be extremely limited.If you doubled that I guess you could possibly buy a minimum parcel of one share on the NZX.
Even to buy a fund you might need more than that eg for SmartShares you need $1500 to start off.
perhaps just a bank account is the go with that amount, open a online account (so theres no fees) and put it in a 5 year term deposit which will give a guaranteed 6% or more.

kiora
16-09-2010, 09:12 PM
Hard to beat to beat kiwisaver in a growth fund.As long as at least $1050?? invested govt puts in $1000 kickstart.It depends on how you want them to access the funds whether it is suitable for what you want.Here is a link
http://www.kiwisaver.govt.nz/

karen1
17-09-2010, 12:07 AM
Hi Peat and Kiora, and thanks for the comments. Perhaps I should clarify - we opened savings accounts each time a grandchild was born, so now they have tiny nest eggs which, 30 years ago when it was our own kids, are not growing as quickly in this age of low interest. I have always made money work to the best advantage with term deposits etc, but times are different.

I dabble in a very minor way buying and selling shares and feel confident to take this route with the grandchildren's savings and to that end I'm eyeing HLG (great divvies), MLN, FRE, OIC.
If I go this way, would purchase one packet and do off market transfer to negate the hassle of opening trading accounts for all.

If I decide to go with a fund, all names would be on the one application form. If a fund did reasonably well over a few years, I could then look at taking some out to use elsewhere...

kiora
17-09-2010, 03:32 AM
Hi Karen1 One of the growth fisher funds may suit better http://www.fisherfunds.co.nz .This is the same fund manager as MLN.The absolute performance from putting funds into kiwisaver is hard to beat though with the $1000 kickstart.Otherwise Templeton Emerging markets is a value investor or Henderson TR Income or Pacific for higher yield Cheers

karen1
18-09-2010, 02:00 AM
Hi Kiora,

Forget to also mention the Kiwisaver thing is sorted - only problem with that is of course the non availability of entire funds until 65, and by the time these kids get there it will probably be 75!:rolleyes::crying:

So the aim is to present them with something which, like the good old savings account of way back when, will hopefully look quite attractive in 10 years or so, at a time when no doubt they will be looking for funding for tertiary training etc.

I do have a Fisher Funds prospectus on hand, and am a fan of the lady herself, so this idea is tempting. Either way, shares or funds, I guess it's all a gamble, but it would be good to think it was a calculated gamble...
Cheers, and thanks for your input