The Biggest Investment Mistakes Kiwis Make (And How to Avoid Them)

Most investment mistakes don’t feel like mistakes at the time.

They feel logical. Safe. Sensible.

That’s why they’re so common.

1. Holding too much cash

Cash feels safe—but over time:

• Inflation erodes value

• Growth is limited

It’s one of the most common silent mistakes.

2. Chasing last year’s returns

What performed well recently often attracts attention.

But investing based on past performance can lead to:

• Buying high

• Selling low

3. Lack of diversification

Putting too much into:

• One asset

• One sector

• One idea

Increases risk more than people realise.

4. Reacting to headlines

Markets move daily. Headlines amplify that.

Reacting emotionally often leads to poor timing decisions.

5. Not having a plan

This is the biggest one.

Without a clear plan:

• Decisions become reactive

• Confidence drops

• Outcomes suffer

Good investing isn’t about avoiding all mistakes—it’s about avoiding the big ones.

If you’re not sure whether your current investments are set up properly (or just “kind of there”), it’s worth getting a second opinion.

Legaseed NZ Ltd (FSP1005404) holds a licence issued by the Financial Markets Authority and provides financial advice in relation to financial & retirement planning, investments, KiwiSaver and personal risk insurance. Our disclosure information can be found on our website www.legaseed.co.nz, or is available on request and free of charge.