for her. Should her circumstances change on living costs into shares to try and make a Alternatively, if Kaveri wanted to increase her she could still sell the shares at any stage or capital gain. exposure to better potential gains from the share she gets the dividends as income. market, she could also consider altering the type There will always be fluctuations in share prices of KiwiSaver investment plan she has, or split Kaveri is in a good position to save and but generally the trend is upwards in the long some into share type funds and keep ‘growth’ invest. She is at a stage in life where she term. Kaveri is only 23 years old and therefore some in her conservative fund. She could also have many commitments so could has time on her side. She presently doesn’t doesn’t consider a managed fund that is not KiwiSaver afford to commit savings to this type of need an additional income flow so can therefore with shares as the main investment. investment (shares) and take the risk to get use the investment in shares as a long-term the better return in the long run. investment which will improve her future With her frequent absences from home, this might financial outcomes. be an easier option for her as the managed fund It will also give her the opportunity to learn (which could be KiwiSaver) would be more about investment in shares so she can professionally managed and she have to wouldn’t grow her portfolio gradually. be on top of monitoring share price fluctuations and managing her share portfolio. Saving/Investment Option 2 KiwiSaver Scenario(s) = A B C D (circle relevant scenario) Explanation of choice Links to the suitability of the choice for the Justification of choice over other options scenario
for her. Should her circumstances change she could still sell the shares at any stage or she gets the dividends as income. Kaveri is in a good position to save and invest. She is at a stage in life where she doesn’t have many commitments so could afford to commit savings to this type of investment (shares) and take the risk to get the better return in the long run. It will also give her the opportunity to learn more about investment in shares so she can grow her portfolio gradually. on living costs into shares to try and make a capital gain. There will always be fluctuations in share prices but generally the trend is upwards in the long term. Kaveri is only 23 years old and therefore has time on her side. She doesn’t presently need an additional income flow so can therefore use the investment in shares as a long-term investment which will improve her future financial outcomes. Alternatively, if Kaveri wanted to increase her exposure to better potential gains from the share market, she could also consider altering the type of KiwiSaver investment plan she has, or split some into ‘growth’ share type funds and keep some in her conservative fund. She could also consider a managed fund that is not KiwiSaver with shares as the main investment. With her frequent absences from home, this might be an easier option for her as the managed fund (which could be KiwiSaver) would be professionally managed and she wouldn’t have to be on top of monitoring share price fluctuations and managing her share portfolio. Saving/Investment Option 2 KiwiSaver Scenario(s) = A B C D (circle relevant scenario) Explanation of choice Links to the suitability of the choice for the scenario Justification of choice over other options
28090-v3-Assessor-guidelines.docx