InvestNow adds another low-cost Foundation fund

The new fund charges a management fee of just 0.15% annually, a 0.50% transaction fee on all buy orders (entry fee) and 0.50% on all sell orders (exit fee).

It is the 10th offering in InvestNow’s low-cost Foundation Series Funds range, and the first time that New Zealand investors can get exposure to the Nasdaq-100 within a PIE fund.

“The Nasdaq-100 is one of the world’s preeminent large-cap growth indexes, and by capturing exposure through a low-cost, tax-efficient PIE fund, it can help reduce expenses and therefore enhance returns for Kiwi investors,” says InvestNow Senior Portfolio Manager Jason Choy.

“Direct investors into other funds that track the Nasdaq-100 face a marginal tax rate of up to 39%. Through a PIE fund however, investors’ tax rate is capped at just 28%, which can help sidestep an up to 40% higher tax bill in real terms. The advantages are considerable, and I wouldn’t be surprised if this ends up being one of the most popular funds we offer.”

The Foundation Series Nasdaq-100 Fund offers exposure to the 100 largest non-financial companies listed on the Nasdaq Stock Market, which includes tech heavyweights such as Apple, Tesla, NVIDIA and Microsoft.

InvestNow started its low-cost Foundation Series Funds range in 2020, which have an average management fee of just 0.16% per annum. Currently the Foundation Series Funds have around $500m in funds under management.