Best Performing KiwiSaver Funds - Current Overview

You may be looking for the best KiwiSaver provider. However, as you can see, various winners depend on the funds and Kiwi Saver options in the market. This is because each provider offers a range of KiwiSaver funds. While one of their funds may be a top performer, another may lag behind. 

There are over 25 schemes with multiple funds available, so your KiwiSaver investment options are plentiful. Thus, choosing between the multitude of options can be overwhelming. While a friend may sing praises about a scheme, it may not necessarily be the right one for you. That is because people and their goals differ, therefore what works for them also differs. 

Back to the question at hand regarding the best performing KiwiSaver options. As different providers offer a variety of funds, the people in charge of each fund also differ. Thus, the team managing the Milford Active Growth KiwiSaver Fund may be the best performing in the growth category. Meanwhile, in the moderate category, the Aon Russell LifePoints team outperforms the dedicated Milford team and the industry overall.

In summary, the first decision regarding your KiwiSaver investment options should be to pinpoint the fund category suited to you. This will be based on your risk appetite, age, ethics and beliefs, and stage of your life. Only then, can you compare schemes and consider selecting one based on performance. 

Here at National Capital, we use a combination of technology and manual specialised analysis to provide custom recommendations. We’re aiming to simplify the process and really tailor your KiwiSaver options down to a handful suited to you. Our advice is free and there’s absolutely no obligation to follow through with any recommendations. Our aim is to simply get Kiwis to make an active decision on their Kiwi Saver options.

KiwiSaver funds that offer solid and consistent returns over a long period of time are typically what you look for. You’ve landed on the perfect web page that periodically tracks and adjust the best performers in each fund category. You can assess your KiwiSaver options yourself or you can get in touch with us for a guided walkthrough. We take into consideration your personal circumstances to narrow down the best Kiwi Saver options tailored for you.

Fees, also play a role in the difference between your KiwiSaver investment options. If the difference in the performance of two competing KiwiSaver funds is only slight and the fees differ significantly, your best option is the cheaper one. However, this also depends on a case-by-case basis as the fee structure is often determined by total savings. 

A track record is also an important factor in choosing between Kiwi Saver options. We generally recommend funds with a long proven track record over another with higher returns but under 5 years old. This is because investing is a long-term game. Anyone can get lucky in the short term. What differentiates the best from the rest is consistently high returns over a period of more than 5 years. 

Naturally, your financial goals also come into play when choosing the fund that is right for you. No matter how high the returns are in growth funds, the volatile nature of these funds isn’t good for some. It isn’t only a matter of risk tolerance. If you are withdrawing from your savings often, it can lead to major losses if withdrawn at the wrong times. 

Your KiwiSaver investment options are plentiful. If you need guidance on choosing the right one for you, National Capital is here to help.

For the best performing KiwiSaver funds to exist, others will have to underperform in order for a natural order to form. Here we assess all KiwiSaver options and rank out the top performers in each fund category. 

Through your KiwiSaver login, you can check out your existing returns on investment. How does your provider compare against the industry average and the best in your fund category? Your KiwiSaver options are plentiful, but are you in the right one? 

If you’re happy with the current performance and it compares well, great! On the other hand, if you see that your returns are well below other KiwiSaver funds you should investigate further. How long has your fund been underperforming? If it is just a short period of time, it may well be an anomaly. However, if your fund has been outperformed over years of investing, it may be time to reconsider your KiwiSaver options. 

All companies providing KiwiSaver investment options display their past performance for public record. These results are generally updated quarterly on their respective websites. Thus you can take it into your own hands to compare results versus the top performers listed on this page. We have chosen a period of 5 years as a good measure to track fund performance and consistency. Alternatively, you can complete our Health Check application and we can provide you with the best Kiwi Saver options automatically.  

Remember, there are many other factors to consider when looking at your KiwiSaver investment options. Rather than making a rash switch, talk to us in order to make an informed decision. 

According to Stats NZ, the household savings ratio as a percentage of net disposable income has been historically low. Before the Covid-19 pandemic began, it was averaging under 1% of disposable income. That changed since the Covid-19 pandemic broke out largely due to the insecurity people were facing in uncertain times. 

For one reason or another, it is safe to say that Kiwis struggle with saving. This is exactly why KiwiSaver investment options are a great way to save and secure long-term financial freedom. Granted, investing in KiwiSaver funds isn’t the only way to guarantee a financially comfortable retirement, and it shouldn’t be. Your investment portfolio should be diversified and KiwiSaver options are a great tool to have on your belt. 

A great reason why KiwiSaver funds are a good investment option is due to the ease of the entire process. Once you are enrolled and have selected amongst the available Kiwi Saver options, you don’t need to do anything else. The percentage of your salary is taken automatically from your payslip and invested into your account. Thus, for a nation that finds saving difficult to do, this is a hassle-free investment opportunity. Moreso, the minimum 3% of your salary invested is greater than the average household savings rate of 1%. 

If one of your financial goals is to retire comfortably, you should be carefully considering your Kiwi Saver options. Naturally, that depends on what your account balance is when you are retiring. Thus, the earlier you analyse your KiwiSaver options, the more accurately you can focus on your retirement goals. We’re able to project your account balance when you retire by entering your contribution rate and annual returns. Get in touch with us to see if you’re where you want to be for retirement.

As already mentioned, there are multiple KiwiSaver investment options to choose from. You have KiwiSaver funds ranging from Conservative to Aggressive and Balanced funds in between. As the names suggest, different fund types have different risk and reward strategies that they implement. Choosing between funds and Kiwi Saver options is largely dependent on your risk tolerance. However, you must also consider your circumstances and financial goals, both long and short term.

KiwiSaver funds generally come with a Risk Profile rating that you should look for before making a decision. The lower the risk rating, the lower the potential returns, and vice versa. Lower risk funds also offer more stable investments that don’t fluctuate as frequently and rapidly as their higher risk counterparts. Low-risk assets typically include investments in fixed interest securities and moderate exposure to equities. On the other hand, high-risk KiwiSaver options primarily invest in international equities with potentially high returns but also high volatility.

The official IRD website mentions that there is a range of KiwiSaver funds to suit your needs. It also touches on the fact that different KiwiSaver investment options are available with different amounts of potential risk and return. However, it stops short of offering financial advice on which fund is the right one for you. 

That is where National Capital comes in. We offer free tailored advice to make the choice between Kiwi Saver options one that you’re confident about. Although your risk appetite may be high, your life circumstances may be suited to a more pragmatic investment. Take our free assessment test and get custom recommendations on the best KiwiSaver investment options available to you.

There are a lot of Kiwi Saver options to choose from and this can make it hard to decide. Some people may not know that you can indeed split your savings in multiple funds offered by your provider. 

This is to give you multiple KiwiSaver investment options regarding risk and reward. If you are nearing retirement and have a sizeable amount of money saved you may want a stable KiwiSaver investment. Normally, stability comes with a lower ROI in the form of Moderate and Cash KiwiSaver funds offered. However, if your risk tolerance is naturally high, you may seek to split your savings between a High Growth Fund and a Moderate Fund.

You may also be in your teens or early twenties and seek to split your savings between multiple KiwiSaver funds. At this age, your risk tolerance is generally higher than someone nearing retirement. This is partly because your balance is much lower (less to lose), and because there’s plenty of time until retirement. With your first home purchase in mind, your savings can be split between a High Growth and Growth Fund. This is because you want to be in funds that offer the highest returns possible in a short period of time. The part invested in a Growth or Moderate Fund is to hedge against the high volatility of High Growth Funds.

The split ratio of savings in different funds is also completely up to you as part of your KiwiSaver options. For example, you can invest 80% into a High Growth Fund and 20% into a Moderate Fund. Alternatively, you may have 60% in Moderate, 20% in Growth, and 20% in a High Growth Fund. This allows you the flexibility to match your KiwiSaver investment more precisely with your short and long-term goals.

A good return depends on the investment mix of the particular funds you are invested in. Combined with market volatility and risk, you cannot expect a guaranteed return on investment but can get an idea from past performance.

Based on National Capital’s research, here’s the 5 year average returns on different fund KiwiSaver options:

• Conservative Fund: 2.6%
• Moderate Fund: 3.6%
• Balanced Fund: 6.4%
• Growth Fund: 8.3%
• High Growth Fund: 7.65%

Conservative funds have a lower risk level and therefore tend to provide lower returns than other Kiwi Saver options. They may be a good option for people close to retirement. Or  people who don't want to see the value of their investments fluctuate too much.

Balanced funds are a moderate-risk investment and tend to provide moderate returns. These funds may be a good option for people who want to see some growth in their investments. And also don't want to take on too much risk.

Growth funds have a higher risk level and therefore tend to provide higher returns than other types of KiwiSaver funds. They may be a good option for people who have a longer time horizon until retirement. And are willing to accept more volatility in the value of their investments.

As previously mentioned, you have the ability to mix and match your KiwiSaver investment options. You can split your savings in multiple KiwiSaver funds and therefore should expect different returns from each fund type.

Ultimately, there is no one-size-fits-all answer regarding what is considered a good return on KiwiSaver funds. It all depends on your circumstances and KiwiSaver investment options.

Your KiwiSaver funds are held in a trust and managed by professionals. The funds are used by your chosen provider to be invested in various assets, including shares, property, and cash. Even if their business goes under, they can’t use your funds to resolve their financial troubles. 

On the other hand, the value of your investment will go up and down depending on how the markets perform. However, KiwiSaver options are expected to grow with time.

Your money is also diversified across a range of different investments, which helps to reduce risk. Different KiwiSaver investment options lead to a diversified portfolio to hedge against any single investment going down in value.

Your money is saved until you retire or purchase your first home and you can't access it earlier. This can be seen as a good thing because it stops you from spending your savings spontaneously. But it can also be seen as bad because you can't access the funds any time you want.

Kiwi Saver options are managed by professional fund managers. They invest your money in various assets trying to grow your savings. It can provide peace of mind for some savers, knowing that experts are looking after their money.

While there is no guarantee that you will profit from it, the vast majority of people are doing well.

So, it is justified to say that your Kiwisaver investment is in safe hands.

Most providers will have between 5 and 6 KiwiSaver funds for you to choose from. What differentiates them is the range in risk, volatility, and potential return rates. 

With any single provider, your KiwiSaver options may range from cash to aggressive funds. Here’s a list of your KiwiSaver investment options with the majority of the big providers: 

• Cash Fund (Risk Profile: 1/7)

• Conservative Fund (Risk Profile: 3/7)

• Moderate Fund (Risk Profile: 4/7)

• Balanced Fund (Risk Profile: 4/7)

• Growth Fund (Risk Profile: 5/7)

• Aggressive Fund (Risk Profile: 6/7)

Choosing between these KiwiSaver investment options should really depend on your circumstances. If you’re young and intend to invest long-term, then you may consider one of the higher-risk KiwiSaver options. On the other hand, if you are about to retire, you are looking for stability in your KiwiSaver investment. Therefore, picking one of the lower-risk options. 

Lower-risk funds typically invest in assets that are deemed to be much less volatile and exposed to external shocks. Those investments are typically held in cash or government bonds for a low yet stable return. 

Higher-risk funds will typically invest in listed companies around the world and multiple industries. These types of companies are usually left much more exposed to the overall economic environment and thus more volatile. However, there is the opportunity for higher returns when invested in the right companies in the long run.

According to the Finacial Market Authority’s 2022 Annual Report, growth funds are the most popular KiwiSaver investment choice. Below is a table showing the different types of KiwiSaver funds as classified by FMA. Keep in mind that Aggressive funds are also grouped with Growth funds. 

As we can see, Growth funds are the most popular choice amongst KiwiSaver investment options, followed by Conservative and Balanced. Interestingly, there are more members in Conservative funds, however with a lower total investment dollar value than Balanced Funds. This indicates that members who hold their KiwiSaver investment in Balanced funds will have a higher balance than those in Conservative funds on average. 

It is also worth noting that some people decided to spread their savings across multiple Kiwi Saver options. The total KiwiSaver investment member number is not 3,512,231. This number includes members investing in more than one of the KiwiSaver options. According to IRD, the actual total number of members is currently at 3,204,352.

For the majority of Kiwis, KiwiSaver funds can only be withdrawn during the purchase of their first home or retirement. In both of these scenarios, they can withdraw their KiwiSaver investment as a lump sum should they choose to. Whether it is a good idea or not, depends entirely on your circumstances and financial goals. 

People withdrawing their KiwiSaver investment to purchase their first home will usually do so in a lump sum. This is typically necessary to get as big of a deposit as possible and get financing with favourable terms. However, if they don’t need to, it is one of their KiwiSaver options to withdraw as little as they want. According to Kainga Ora, at least $1,000 must remain on your account after withdrawing. 

Once you’ve reached the age of retirement (currently 65), you are also eligible to withdraw your KiwiSaver funds. Again, as part of your Kiwi Saver options, the choice to do it as a lump sum is yours. However, for many retirees, it is recommended that they stick with their KiwiSaver investment options. The best KiwiSaver funds will continue providing annual returns and thus it can be beneficial to your long-term security. 

Of course, the key purpose of KiwiSaver investment options is to provide you with some financial security post-retirement. Naturally, you will rely on withdrawing KiwiSaver funds to help maintain a certain lifestyle when you stop working. Some providers like Westpac, have certain minimum withdrawal requirements. For regular withdrawals, they require a minimum of $100 a month and a minimum of $500 for lump sum withdrawals. You should check with your provider about their withdrawal policies to avoid any related fees. 

To discuss the best KiwiSaver funds or the most appropriate Kiwi Saver options for you, contact National Capital today.