Its name might be misleading but KiwiSaver isn’t a savings account - it’s an investment. This means that, instead of sitting in an account earning perhaps a small amount of interest, your KiwiSaver money is being invested on your behalf by your KiwiSaver provider.
What they invest your money in, and how much return you could see on your investment, is down to the investment fund you choose.
The Kiwi Wealth KiwiSaver Scheme has six investment funds:
Each investment fund has a different level of risk, which depends on the type of asset it invests in. Cash is our lowest risk fund because it invests in low risk assets, such as cash. And Growth is our highest risk fund because it invests mostly in higher risk assets, such as shares.
Generally speaking, the more risk you take on, the greater the potential for returns on your money over the long-term. So putting your money in a higher risk investment fund could earn you greater returns in the long-run. However, this also means you’ll also have to put up with seeing your account balance experience more extreme ups and downs, more frequently, than if you were invested in a lower risk fund. You need to decide what you might be comfortable with.
Invested 100% in cash assets.
Suggested for someone with a short (less than 12 months) investment timeframe.
Invested up to 60% in fixed interest assets, and the remainder in cash assets.
Suggested for someone with a short (less than 3 years) investment timeframe.
The CashPlus Fund is closed to new fund members from 1 April 2019.
Intended for short-term investment until you choose the best fund(s) for your circumstances. It holds 15% to 25% in shares and other growth assets at all times, with the remainder invested in a combination of cash and fixed interest assets.
Suggested for someone with a short (1 to 5 years) investment timeframe.
Invested up to 35% in shares and other growth assets, with the remainder invested in cash and fixed interest assets.
Suggested for someone with a short (3 to 5 years) investment timeframe.
Invested up to 70% in shares and other growth assets, with the remainder invested in cash and fixed interest assets.
Suggested for someone with a medium (5 to 10 years) investment timeframe.
Invested up to 90% in shares and other growth assets, with the remainder invested in cash and fixed interest assets.
Its objective is to exceed the returns you would receive from investing 80% of your funds in global shares and 20% of your funds in New Zealand fixed interest assets and cash assets through active asset allocation and active selection of shares and other growth assets, fixed interest and cash assets.
Suggested for someone with a long (more than 10 years) investment timeframe.
Find out about the performance of each of our investment funds.
See how much you'll pay per annum for each fund.Check out our fees table.
When choosing the investment fund - or combination of funds, which we call setting your Investment Direction – you need to consider three things:
Check out our video 'Understanding investment risk' for more info about choosing the investment fund that's right for your needs.
Try our Risk Profiling Tool to get a better understanding of which Kiwi Wealth KiwiSaver Scheme fund might be best for someone like you.
This is intended as general information only. It does not take into account your financial situation and goals and is not personal advice. For advice about your particular circumstances, please see your financial adviser.
Setting your Investment Direction is easy when you're a member of our Scheme. Simply log into your Kiwi Wealth KiwiSaver Scheme member account and go to your Personal Details page to request a change. You can do it at any time and free of charge.
You can also request a change in writing, by contacting our friendly Customer Services Team, and including your full name and IRD number.