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KiwiSaver Fund Types Guide — Conservative, Balanced, and Growth Funds in NZ

the KiwiSaver fund types in New Zealand. The guide covers the conservative funds (the low risk, the 80-100% income assets), the balanced funds (the moderate risk, the 50-70% growth assets), and the growth funds (the high risk, the 70-100% growth assets), along with the default fund settings and the switching rules.

KiwiSaver Fund Categories

The KiwiSaver funds in New Zealand are categorised by the risk profile and the asset allocation: the conservative funds (the 80-100% in the cash and the fixed interest, the low volatility), the balanced funds (the 50-70% in the growth assets like the shares and the property, the moderate volatility), the growth funds (the 70-100% in the growth assets, the higher volatility, the higher long-term return potential), and the cash and the default funds (the low-risk options for the members who have not selected the fund). Since the 1 December 2021, the new default KiwiSaver funds are the balanced funds with the diversified assets. The fund fees vary significantly — the average KiwiSaver fee ranges from 0.3% for the passive funds to 1.5% for the active funds. See our KiwiSaver Guide → for the comprehensive KiwiSaver rules.

Fund Switching and Life Stage Strategies

The members may switch the KiwiSaver funds at any time, though the switching frequency may be restricted by the provider. The life-stage investment strategy adjusts the asset allocation as the member approaches the retirement age — the younger members may choose the growth funds for the maximum returns, while the members approaching 65 may prefer the conservative or the balanced funds to preserve the capital. The KiwiSaver providers offer the online switching through the member portal. The employer contributions and the member tax credits continue regardless of the fund choice. See our KiwiSaver Calculator → for the fund projection tool.