To celebrate the season of giving, we thought we’d put together the first-ever Sharesies Gift Guide! This is a guide to help you understand what your friends might like to buy if they were given a Sharesies Gift. (Quick note: this is not investment advice. We’re just having some fun.)
OK, let’s get into it:
For the property-obsessed 🏠
Property is New Zealand’s national obsession. You probably have at least one family member who enthusiastically joins in. You know the type—they’ll constantly be telling you that property is the only investment worth making, and all you need to do is buy a house or two. They could use their Sharesies Gift to invest straight into the NZ Property fund! This fund invests in big, publicly-listed NZX property companies that own offices, industrial property, homes and even hospitals right across NZ—giving them a little piece of their favourite thing!
The keen traveller in your life ✈️
Lots of us have one or two of these around us. It’s the sibling, cousin or friend who’s just arrived home from some overseas destination, with heaps of souvenirs, pictures and epic stories.
So this person could use your Sharesies Gift to buy a little piece of their favourite destination. For the cousin who just got back from London, they could get some shares in the Europe Fund. They could get some shares in the Asia Pacific Fund if they just finished teaching English in Asia. And if they were working at Camp America? Well, the US 500 might be the perfect investment for them!
Then there’s the Emerging Markets Fund, which might just suit your friend who was travelling somewhere like Brazil, China, Taiwan or South Africa. And if they’ve truly been everywhere and seen everything, they could invest in (you guessed it), AMP Capital Global Shares. This is a little piece of companies from all over the world—perhaps a great idea for the globetrotter in your life!
The homebody 🐑
Of course, travel isn’t for everyone. Lots of us are perfectly happy right here in New Zealand. And naturally, there are heaps of investment options to reflect that. The NZ Top 50, NZ Mid Cap, and NZ Core Fund are packed full with bits of Kiwi companies. It might be the investment for someone who’s most comfortable nice and close to home.
The family member who’s back home from Aussie 🐨
Have a brother or sister who’s back home after working in Australia for a while? Help them invest in that decision by giving them some money to invest in Australia itself. They could buy some shares in the Australian Resources fund to get in on some of that energy action, or the Australian Top 20 to get a broad investment into lots of Australian companies. Or they could do both. Primo for those home in time for the holidays!
The people who aren’t fans of risk 😎
High-risk investing isn’t for everyone. Some people want to spend their money in the near future, so don’t need that short-term risk pressure. Some people are new to investing and want to ease into things. And for some people, risk just isn’t their cup of tea. For these people, maybe they could invest in NZ Bond?
This fund invests in bonds, which are essentially loans. It lends money to some pretty big organisations—they’ve got Fonterra, Spark, a fund that lends to local governments, and even the NZ Government itself. These are big organisations that have been reasonably predictable in their ability to repay their debts. Over the last five years, this thing has been pretty solid. No big moves up, no big moves down. It’s just the stability that someone needs when they’re looking for an investment with money they’re going to need really soon!
The socially responsible crowd 🌿
Do you have friends who are into things like sustainability and social justice? Well, great news: Pathfinder Global Water and Pathfinder Global Responsibility could be great options for these people! These funds make investment decisions based on Environmental, Social and Governance criteria (ESG)—like how an organisation responds to (or contributes to) climate change, workplace safety, and corruption, among other things.
Specifically, Global Water invests in companies that work on things like water treatment, pipe and pump manufacturing, and lots more. And Global Responsibility invests in a wider range of companies that meet their ESG criteria. Plus, it’s vegan friendly. Could this be perfecto?!
All the options 🍍
So, who knows—they might completely surprise you! You can share the love of investing with a Sharesies Gift of anywhere between $5 and $2,000—then it’s all up to them. And if they’re stuck for ideas, send them a link to this post to get them started!
Giving the gift of investing is a great way to show someone you care about their future, and start conversations about money. This time next year, you could well be comparing portfolios and swapping tips for 2020!
Of course, this isn’t actual investment advice. When you’re choosing an investment, there are a bunch of different factors to consider. But what would the silly season be without a bit of fun?
Ok, now for the legal bit
Investing involves risk. You aren’t guaranteed a return, and you might lose the money you started with. Before investing, you should read your fund’s product disclosure statement. It contains the investment objectives, risks, fees and other information. You should carefully consider this information in relation to your investment time frames and goals.