What fund should I choose?

You don't have to choose just one, but you should make a choice.

Even though it's called KiwiSaver, it's not really a savings account - it's an investment. When you deposit money into your KiwiSaver account, whether through regular contributions or a lump-sum, it's invested on your behalf by your KiwiSaver provider.

What they invest your money in, and the returns you could see on these investments, all depend on the fund or funds you choose.

Each fund has a different level of risk based on the types of assets it invests in. Cash assets tend to increase in value slowly but steadily whereas shares, which can be a bit more unpredictable in their highs and lows, are a riskier investment.

Generally speaking, the more risk you take on in your investments, the greater the potential for returns on your investment over the long-term. Putting your money in a higher risk fund could earn you much greater returns in the long run, though you'll also see your balance go through more extreme ups and downs than you would with a lower risk fund.

When choosing a fund, you should consider your goals, how long you want to invest, and how comfortable you are with risk.

Cash

Fund description

Aims to provide stable returns and reduce the potential of capital loss over the short to medium term by investing in cash and New Zealand short term fixed interest assets.

Long term target to income assets: 100%
Long term target to growth assets: 0%

Timeframe

There is no minimum suggested investment timeframe for this fund.

The Cash fund is generally suitable for a short-term or naturally cautious investor who is looking to make a withdrawal within 12 months, or who is most interested in low volatility of returns over achieving potential higher returns.

Objective

To meet or exceed the return of the investment benchmark before fees and tax over the short term.

Target investment mix

CashPlus

As of 1 April 2019, the CashPlus fund is closed to new members

Fund description

Aims to provide stable returns and reduce the potential of capital loss over the short to medium term by investing in cash and fixed interest assets.

Long term target to income assets: 100%
Long term target to growth assets: 0%

Timeframe

Minimum suggested investment timeframe: 2 years

The CashPlus fund is generally more suitable for investors with a short investment timeframe (less than three years) or members who have low tolerance for declines in the value of their member account.

Objective

The objective is to meet or exceed the return of the investment benchmark before fees and tax over the short term.

Target investment mix

Default Conservative

Prior to 1 December 2021, this was named the Default fund

Fund description

Aims to provide stable returns over the long term by investing mainly in income assets with a small allocation to growth assets. An enhanced passive investment style may be used at times.

Long term target to income assets: 77.5%
Long term target to growth assets: 22.5%

Timeframe

Minimum suggested investment timeframe: 3 years

The Default Conservative fund is generally suitable for a short term or naturally cautious investor who is nearing retirement or intends on making a withdrawal in the short term. It also suits an investor who values lower volatility of returns over achieving potential higher returns.

Objective

The objective is to meet or exceed the return of the investment benchmark before fees and tax over the long term.

Target investment mix

Conservative

Fund description

Aims to provide stable returns over the long term by investing mainly in income assets with a modest allocation to growth assets.

Long term target to income assets: 72.5%
Long term target to growth assets: 27.5%

Timeframe

Minimum suggested investment timeframe: 3 years

The Conservative fund is generally suitable for a short term or naturally cautious investor, looking to make a withdrawal in the short term or who values lower volatility of returns over achieving potential higher returns.

Objective

The objective is to meet or exceed the return of the investment benchmark before fees and tax over the long term.

Target investment mix

Default

Fund description

Aims to provide a balance between stability of returns and growing your investment over the long term by investing in a mix of income and growth assets. An enhanced passive investment style may be used at times.

Long term target to income assets: 40%
Long term target to growth assets: 60%

Timeframe

Minimum suggested investment timeframe: 5 years

The Default fund is generally suitable for a medium to long term investor who wants a balance between volatility of returns and achieving potential higher returns.

Objective

The objective is to generate returns similar to the investment benchmark before fees and tax over the long term.

Target investment mix

Balanced

Fund description

Aims to provide a balance between stability of returns and growing your investment over the long term by investing in a mix of income and growth assets.

Long term target to income assets: 40%
Long term target to growth assets: 60%

Timeframe

Minimum suggested investment timeframe: 5 years

The Balanced fund is generally suitable for an investor who wants a balance between volatility of returns and achieving potential higher returns.

Objective

The objective is to meet or exceed the return of the investment benchmark before fees and tax over the long term.

Target investment mix

Growth

Fund description

Aims to grow your investment over the long term by investing mainly in growth assets.

Long term target to income assets: 19%
Long term target to growth assets: 81%

Timeframe

Minimum suggested investment timeframe: 7 years

The Growth fund is generally suitable for a long term investor who can tolerate volatility of returns in the expectation of potential higher returns, and who has time on their side.

Objective

The objective is to meet or exceed the return of the investment benchmark before fees and tax over the long term.

Target investment mix

Need to know more?

If you're having trouble choosing the right fund for your goals, we've got some additional information that might help

When choosing the right fund or funds for your goal, you need to consider three things:

  • the amount of risk you’re comfortable taking on
  • your investment timeframe
  • your financial situation.

We call this "setting your investment direction."

Looking for something else?