Main KiwiSaver investment options
KiwiSaver providers offer their own version of each fund, so exact allocations vary from one scheme to the next. Here's a closer look at what each fund invests in, and who it may suit:
Defensive funds
- The lowest-risk KiwiSaver fund
- Invested almost entirely in cash and cash-like assets, with little to no shares or property
- Has the smallest ups and downs in value of any fund type
- Comes with the lowest long-term return potential.
This fund may suit you if:
- you want to avoid seeing your balance drop (though this is never guaranteed), and you're okay with slower growth over time in exchange for stability
- you rely on your investments for regular income
- you plan to use the money within the next three years (for example, to put towards a first-home purchase, or because you're already retired and drawing down your balance).
Conservative funds
- Mostly income assets (cash and bonds), with a smaller allocation to growth assets, like shares and property
- Lower volatility than balanced, growth, or aggressive funds
- Better suited to short-to-medium timeframes, generally around four to five years or more.
This fund may suit you if:
- you can tolerate some fluctuation in value, aiming for long-term returns somewhat better than a defensive fund, though not as high as more aggressive options
- you rely on your investments for regular income
- you’re planning to use the money in about four to five years.
Balanced funds
- A mix of growth assets (shares, property) and income assets (cash, bonds)
- Moderate risk, with moderate expected long-term returns
- Suited to medium-term investors, generally around six to eight years or more.
This fund may suit you if:
- you take a moderate approach, able to handle occasional small dips in value while pursuing mid-level long-term returns
- you plan to use the money in about six to eight years.
Growth funds
- Invests mostly in shares and property, with a smaller allocation to cash and bonds
- Higher volatility, with bigger swings in value from year to year than more conservative fund types
- Better potential for long-term returns, in exchange for that extra volatility
- Usually suited to longer timeframes, generally around nine to 12 years or more.
This fund may suit you if:
- you want relatively strong long-term growth and won't be tempted to move to a safer fund during larger drops in value
- you’re planning to use the money in about nine to twelve years.
Aggressive funds
- The highest allocation to growth assets of any fund type, often shares and similar higher-risk investments
- Experiences the largest ups and downs of any KiwiSaver fund type
- Offers the highest long-term growth potential, but also the highest chance of a negative year.
This fund may suit you if:
- you’re aiming for robust long-term growth and are prepared to stay invested even through sharp declines in your balance
- you plan to use the money after thirteen years or more.
What KiwiSaver fund should you be in?
The best fund depends on your circumstances, including your age and stage of life.
Factors to weigh up include:
- Your risk threshold. How comfortable are you watching your balance rise and fall? Some people find this stressful, even if the fund is expected to grow more over time.
- Your financial goals and timeframe. When do you expect to need this money — for a first home, or for retirement? The closer you are to withdrawing, the more it makes sense to reduce your exposure to riskier assets.
- Fees. Compare what you're paying. KiwiSaver fees vary between providers and funds, and even small differences can add up long term.
- Performance. Look at how a fund has performed over time, alongside its fees and risk level. Keep in mind that past performance doesn't guarantee future results.
- Other considerations. Some people also want their KiwiSaver to reflect their personal values, or want access to particular features or a certain level of provider support.
It’s a good idea to seek advice from a Policywise adviser. We can look at your full situation—whether you're a first-home buyer, raising a family, self-employed, or approaching retirement—and help you find a fund that fits.
Which is better, KiwiSaver or managed funds?
Neither is automatically better. KiwiSaver is actually a type of managed fund, so the two have a lot in common. But KiwiSaver comes with some valuable extras that regular managed funds don't offer:
KiwiSaver:
- Built specifically for retirement or your first home
- Many schemes include employer contributions, so your employer tops up your savings alongside you
- You may also qualify for a government contribution
- You can often withdraw some or all of your savings to help buy your first home, if you meet the eligibility rules
- Your money is generally locked in until you qualify for NZ Superannuation, with a few exceptions.
Managed funds (outside KiwiSaver):
- Not tied to retirement or a first home
- No employer or government contributions
- You can usually access your money whenever you like.
The extra contributions and first-home withdrawal option are reasons why so many New Zealanders choose KiwiSaver over a standalone managed fund. The right choice for you still comes down to what you're saving for, and when you'll need the money.
Which is the best KiwiSaver fund in NZ?
There's no single best KiwiSaver fund—the right one depends on your risk tolerance, timeframe, goals, and fees. A fund with strong past returns won't necessarily suit your situation, and past performance is no guarantee of future results.
Rather than chasing the highest returns, consider comparing multiple KiwiSaver providers and funds side by side. Take a look at our guide to the best KiwiSaver providers in NZ for an independent comparison, or talk to a Policywise adviser for recommendations tailored to your goals.
Can I switch KiwiSaver funds without changing providers?
Yes. If your current KiwiSaver provider offers other fund types, you can usually switch between them. For example, you can switch from a conservative fund to a balanced fund without leaving your existing scheme.
Many providers let you do this online, though some may limit how often you can switch for free. Check with your provider, or ask a Policywise adviser to help you weigh up whether switching funds within your current scheme is the right move.
Can I change KiwiSaver providers?
Yes. You can move to a new KiwiSaver provider at any time, even if you're happy with your current fund type. To switch, you'll usually join the new provider directly and complete a membership application. Your new provider will handle the transfer with Inland Revenue on your behalf, which can take a few weeks.
Before you switch, a Policywise adviser can help you compare KiwiSaver providers on fees, services, and performance.
