Introducing the Savings Fund
Dave McLeish
February 26, 2025
A Savings Fund is a managed fund that provides people with a daily set return on their money.
These funds hold low-risk investments such as cash and high-quality fixed interest. They are also professionally managed to deliver the stability expected of a savings account.
Savings Funds carry a very low level of volatility, meaning savers don’t have to shoulder the uncertainty typical of traditional managed funds. Making them an ideal replacement to low-interest bank savings accounts.
Savers earn a set return, inclusive of ordinary costs or fees, on their money each day. The same way an on-call bank savings account works.
On-call Savings Funds offer savers easy access to their money, with no fees or penalties. They also don’t require savers to meet special conditions in order to earn a competitive rate.
Instead of charging set fees and delivering uncertain returns like a traditional managed fund, a Savings Funds flips this around. Which means, the manager of the Fund only gets to keep what’s left over of the Fund’s return once thesaver has been paid the advertised set rate.
Savings Funds are suited to those seeking a reliable and flexible way tosave faster.
Funds designed to replace bank savings accounts have seen a huge growth in popularity over the past decade. In fact, in the U.S. alone $7 trillion(!) now sits in similar money market funds.
Wedge knows of savings providers all over the world including in Australia, Singapore, the United Kingdom, and the United States of America who offer similar bank alternative products.
In a world where savings accounts and managed funds each come with big trade-offs, a Savings Fund combines the best of both. So New Zealanders no longer have to accept appallingly low bank savings rates.
The Wedge Savings Fund is a managed investment fund that provides an annualised variable rate of return. This rate is subject to change without notice. Before investing you should read and understanding the fund’s Product Disclosure Statement (PDS), Statement of Investment Policy and Objectives (SIPO) and other important documents here. If you are still unsure if this fund is suitable for you please consider seeking financial advice before investing.
Welcome to Wedge. And welcome to reaching your savings goals faster.
