How do I choose the right KiwiSaver fund?
Choosing a KiwiSaver fund generally comes down to three things:
When you'll need your money,
what you're investing for and
how comfortable you are with seeing your balance rise and fall.
Generally, the longer you have before you need your money, the more time you have to ride out market ups and downs.
Funds with more growth assets, such as shares, tend to move around more in the short term but have greater potential for long-term growth.
Funds with more defensive assets, such as cash and bonds, tend to move around less but generally have lower long-term growth potential.
Below is a summary of your options.
Defensive funds
Best suited if you're likely to need your money in the short term.
Lower expected ups and downs
Lower long-term growth potential
Invest mainly in cash and fixed interest
The Smart KiwiSaver Scheme offers: Smart Income Fund, NZ Bonds Fund, S&P/NZX NZ Government Bond Fund, Overseas Bonds Fund, Overseas Non-government Bonds Fund, Global Aggregate Bond Fund, NZ Cash Fund and UK Cash Fund.
Conservative funds
Best suited for short to medium investment timeframes.
Small to moderate ups and downs
Modest long-term growth potential
A higher allocation to defensive assets with some exposure to growth assets
The Smart KiwiSaver Scheme offers the Smart Conservative Fund.
Balanced funds
Best suited for medium investment timeframes.
Moderate ups and downs
Moderate long-term growth potential
A mix of growth and defensive assets
The Smart KiwiSaver Scheme offers the: Smart Balanced Fund, Smart Default Fund, Ethica Fund and Castle Point 5 Oceans Fund.
Growth funds
Best suited for medium to long investment timeframes.
Moderate to larger ups and downs
Higher long-term growth potential
Invest mainly in growth assets such as shares
The Smart KiwiSaver Scheme offers the Smart Growth Fund.
Aggressive funds
Best suited for long investment timeframes.
Larger short-term ups and downs
Highest long-term growth potential
Invest predominantly in shares and property
The Smart KiwiSaver Scheme offers the Smart High Growth Fund, along with a wide range of specialist New Zealand and global share funds.
Which fund type is right for me?
There isn't one fund that's right for everyone. The right choice depends on:
how long your KiwiSaver will be invested
your financial goals
how comfortable you are with investment risk.
Our Fund Finder can help you find a fund that matches your goals, timeframe and comfort with investment risk. You can also use our KiwiSaver Calculator to see how different fund options could affect your savings over time.
Invest your way
In the Smart KiwiSaver Scheme you can choose from diversified funds, build your own investment mix from over 40 fund options through My Mix, or choose Smart Steps, which automatically adjusts your investment profile as you get older.