KiwiSaver Fund Types

KiwiSaver providers offer funds across a risk spectrum. Conservative funds invest mostly in cash and bonds. They aim for steady, modest returns (typically 3 to 4% per year) and are less affected by market downturns. They suit people nearing retirement or with a low tolerance for short-term losses.

Balanced funds split investments roughly evenly between growth assets (shares, property) and income assets (bonds, cash). They aim for 5 to 6% per year and offer a middle ground between risk and return. They suit people with 10 to 20 years until retirement.

Growth and aggressive funds invest heavily in shares and property, aiming for 7 to 8% per year over the long term. They can lose value in the short term but have historically performed well over periods of 10 years or more. They suit younger savers with decades until retirement.

Your fund choice directly affects how much your KiwiSaver grows. Over 35 years, the difference between a conservative fund (3.5% return) and a growth fund (7% return) on the same contributions can be hundreds of thousands of dollars. However, growth funds carry more short-term volatility.

Related Terms

See how this affects your numbers

Run the mortgage calculator to see how kiwisaver fund types plays out in your specific situation.