No frills financial services company Simplicity is adding unit trusts to its range of investment products.
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The new funds are structured in a similar way to the company's KiwiSaver schemes, with rock bottom fees, and a simple product range.
It is offering conservative, balanced and growth funds based on index tracking, with the US-based Vanguard fund manager looking after the international investments.
Simplicity managing director Sam Stubbs said public demand was behind the launch of the unit trusts, which allowed investors to buy and sell as they wished.
"We think these will appeal to a very wide range of investors due to their ultra low fees, diversified investment, and a non-profit manager they already trust."
Mr Stubbs said Simplicity's fees would be between 50 and 75 percent below the industry average and should shake up the managed funds industry, which has an estimated $40 billion under management.
"Some are just outrageous, reflecting old ways of managing money and sales tactics which belong in the last century," he said.
Simplicity is a not-for-profit organisation. It donates 15 percent of its fees to charity.
Mr Stubbs said it was looking at expanding into other financial products such as insurance or annuities if it saw a gap in the market.
