You can buy and sell investment products independently or use a platform (also known as a ‘nominee service’ or ‘wrap’) that lets you have all your investments in one place. These platforms give access to a wide range of managed funds, fixed interest investments and NZX listed shares.
To find out more about platforms, see below.
Your adviser can recommend changes to your portfolio and get you to sign off each time, or they can provide a discretionary investment management service, called a DIMS. With a DIMS, your adviser manages the day-to-day management of your investments on your behalf. Your adviser needs to be acting under a licence or have authorisation to provide a DIMS.
Your adviser will take you through the relevant paperwork needed to sign up to a DIMS. Before you sign anything ask:
Investment platforms are online services that can be used by you directly or by your financial adviser.
Your investment information is held in one place and you usually receive consolidated reporting – making it easier for you to track the performance of your investments. You may also have access to some funds not available individually.
Be aware, if you’re only investing in one or two funds, it can be more expensive to use a platform. You should also check it isn’t only available to clients of a particular advice firm. If it is and you change advisers, you may have to leave the platform and pay fees and taxes.
Letting someone else make investment decisions for you doesn’t mean you should lose control. Most advisers behave professionally and are legally obliged to do the best for their clients, but it’s still important to keep informed about your investments.