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Should I be changing the type of fund my KiwiSaver account is invested in?

We can't provide specific advice on your circumstances but, as a general rule, your investment timeframe is the most important consideration with fund selection.

We can't provide specific advice on your circumstances but, as a general rule, your investment timeframe should be the starting point when considering fund selection (ie. when you think you’re likely to retire or withdraw for a first home purchase).

For example, people with a 20-year retirement horizon and who aren’t planning on making a first home withdrawal should generally still be in a growth-oriented fund. Over the long term, KiwiSaver account balances should increase again when the market recovers.

However, everyone has a different comfort level around risk, so it’s really a personal choice whether you’re comfortable with a Growth fund (which can fluctuate a lot in the short term but generally gives you higher returns over the long term), or would prefer a more Conservative fund (which usually does not fluctuate by much but has lower returns over the long term).    

You should bear in mind that switching funds temporarily, say from Growth to Conservative, if your KiwiSaver balance is down will lock in any loss .  When the market recovers, buying back into growth assets (like shares) will be more expensive, meaning you may likely have fewer growth assets in your portfolio than prior to the crisis.   

Changing funds can have a big impact on your future retirement income. You can assess for yourself what changes to fund type, and contribution level, will have, using our our award-winning Future You tool.