Whether you have $500, $1,000, $5,000 or $10,000, the steps are the same: sort out debt, an emergency fund and your KiwiSaver government contribution first, then put the rest into a low-cost diversified fund. Several platforms accept deposits from $1, and the habits and accounts you build now are the ones you’ll use when you have $50,000.
First check whether a voluntary KiwiSaver top-up would get you to $1,042.86 of contributions this KiwiSaver year: the government adds up to $260.72 (25c per dollar). If KiwiSaver is already sorted, a low-cost global index fund is a common next step; platforms that accept small amounts include Kernel and Sharesies (from $1) and InvestNow (from $250 a fund). Set up a $50–$100/month auto-invest immediately. The account and the habit matter more than the starting amount.
Before You Invest
Do you have credit card debt? If so, paying off a $500 credit card balance at 20% interest is a guaranteed 20% return — better than any investment. Do this first.
Is your emergency fund empty? Keep at least $500–$1,000 in a savings account for unexpected expenses. Investing money you might need next month and having to sell during a market dip is a bad outcome.
Have you claimed your KiwiSaver government top-up? If your own KiwiSaver contributions this year are under $1,042.86, topping up by $500 might get you closer to the $260.72 government match. Worth calculating first.
Options for Small Amounts
Option 1 — Kernel ($1 minimum)
Kernel accepts investments from $1 in any fund, with no brokerage.
Kernel funds include:
- Kernel High Growth Fund (0.25%) — global equities blend
- Kernel S&P 500 Fund (0.25%) — US shares exposure
Set up auto-invest immediately after your initial deposit. Even $25/week grows your balance to $1,800 within a year.
Option 2 — Sharesies ($1 minimum)
Sharesies accepts $1 minimum. With $500, one option is the NZX-listed Smart ETFs, but Sharesies charges 1.9% brokerage per trade (capped at $25 NZD), which matters more at small amounts than the fund fee itself:
- Smart Total World ETF (TWF) — 0.40% fund fee, plus Sharesies brokerage
- Smart US 500 ETF (USF) — 0.34% fund fee, S&P 500 exposure via NZX, plus Sharesies brokerage
Option 3 — InvestNow ($250 minimum per fund)
InvestNow’s minimum is $250 per fund. With $500, you can put $250 into two funds or $500 into one. The Foundation Series Total World Fund (0.06%, plus a 0.50%/0.50% buy-sell transaction fee) is one of the cheapest diversified global equity PIE fund options in NZ — the narrower Foundation Series US 500 Fund is even cheaper at 0.03% if you’re happy with US-only exposure.
Option 4 — KiwiSaver voluntary contribution
If your KiwiSaver annual contributions (1 July–30 June) are below $1,042.86, a voluntary $500 top-up through your KiwiSaver provider gets you closer to the $260.72 government contribution. Log in to MyIR or your KiwiSaver provider to check your current year’s contributions.
Option 5: A term deposit, if you’ll need the money soon
If you might need the money within a year or two (car repairs, a house deposit), keep it out of shares: a fund can fall sharply in a single year and needs time to recover. A short term deposit or savings account suits money with a near deadline. See best term deposits NZ.
Platform Comparison for Small Amounts
Sorted by minimum investment, lowest first.
| Platform | Minimum | Fee | Main feature |
|---|---|---|---|
| Kernel | $1 | 0.25% p.a. | $1 start, auto-invest, no brokerage |
| Sharesies | $1 | 1.9% brokerage per trade (capped $25), plus fund fee | Shares + funds mix |
| InvestNow | $250/fund | From 0.03% p.a. | Cheapest index fund fees |
| Simplicity | $1,000 | 0.23% p.a. | Not accessible at $500 |
As the Amount Grows: $1,000 to $10,000
One fund is enough. A single global index fund already holds thousands of companies across many countries, so spreading $5,000 or $10,000 across four or five funds adds fees and complexity without much extra diversification. The bigger question is which platform gives you the lowest total cost and an easy way to add regular amounts.
More platforms open up. Simplicity’s minimum is $1,000, and at a few thousand dollars InvestNow’s per-fund minimum stops mattering, so you can choose on fees alone (see the comparison above).
Lump sum or spread it out? Historically, investing a lump sum straight away has usually beaten drip-feeding it, because markets have risen more often than they’ve fallen. But if a fall in the first few months would make you sell, spreading the money over three to six months is a reasonable compromise. See lump sum vs dollar cost averaging.
Tax. In a NZ-based PIE fund (such as Kernel, InvestNow’s PIE funds or Simplicity), tax is deducted inside the fund at your prescribed investor rate, so just make sure your PIR is set correctly. The foreign investment fund (FIF) rules only become relevant if you hold overseas shares directly costing more than $50,000 in total.
What It Could Grow To
A one-off amount invested at an 8% annual return, with no further contributions (illustrative; returns aren’t guaranteed and these are before fees and tax):
| Starting amount | 5 years | 10 years | 20 years |
|---|---|---|---|
| $500 | $735 | $1,079 | $2,330 |
| $1,000 | $1,469 | $2,159 | $4,661 |
| $5,000 | $7,347 | $10,795 | $23,305 |
| $10,000 | $14,693 | $21,589 | $46,610 |
Adding a regular amount matters more than the starting sum. $500 plus $100 a month at 8% (compounded monthly) grows to about $8,093 after 5 years, $19,404 after 10 years and $61,365 after 20 years.
What to Do Right After Investing
- Set up auto-invest — even $25–$50/month. Do it the same day you open the account.
- Ignore the balance — check it quarterly, not daily.
- Increase contributions when income increases — small pay rises invested immediately compound dramatically.
- Don’t switch funds based on recent performance.
Where to check the latest data
Rates, fees and returns change often. Before deciding, check current figures yourself:
- Sorted Smart Investor: compares fees, returns and risk levels of KiwiSaver and managed funds.
- Disclose register: holds each fund's product disclosure statement and quarterly fund updates.
- Financial Service Providers Register: shows whether a provider is registered to offer financial services in New Zealand.
- The provider's own website: has its current rates, fees and full terms; these change more often than any comparison page.