ASB Bank has introduced a new aggressive KiwiSaver fund, the ASB KiwiSaver Scheme Aggressive Fund. This fund is designed to provide customers with the potential for the highest long-term investment returns among ASB's offerings, with a significant emphasis on growth assets. Adam Boyd, ASB's Executive General Manager of Personal Banking, highlighted the increasing customer demand for such investment options, noting a substantial 25% year-on-year growth in aggressive investments within the KiwiSaver market.
Aggressive KiwiSaver funds are characterised by their focus on capital appreciation, typically through a higher allocation in stocks and equities. These funds often carry a higher level of volatility compared to more conservative or balanced KiwiSaver funds, making them suitable for investors who are comfortable with significant market fluctuations and are primarily focused on long-term growth. Such funds usually invest a significant portion of their assets in equities and other growth-oriented investments, foregoing the stability and regular income generation of more conservative investments.
In tandem with this new fund, ASB has upgraded its digital KiwiSaver tools, including a calculator with an enhanced future balance projection feature, to help customers plan effectively for key life events such as buying a first home or retirement.
Commenting on the new fund, Clive Fernandes, CEO of National Capital, said: "ASB's Aggressive KiwiSaver fund launch is a strategic response to the evolving investment landscape, addressing the needs of a segment of the market that seeks higher growth potential. It represents a shift in KiwiSaver offerings, reflecting an understanding that different investors have different volatility tolerances and long-term goals."
In light of these new aggressive KiwiSaver fund offerings, it is increasingly important for investors to seek professional advice before making investment decisions. Choosing the right fund can be a complex task, requiring a thorough understanding of one's financial goals, volatility tolerance, and investment timeframe.
National Capital, underlining the importance of informed decision-making in investments, offers a valuable resource in this regard – the free KiwiSaver HealthCheck. This tool is designed to help investors assess their current KiwiSaver situation and provide tailored recommendations to ensure their KiwiSaver account is aligned with their personal objectives and circumstances.
With such resources at hand, investors are better equipped to navigate the diverse range of options available in the KiwiSaver scheme, making choices that best suit their long-term financial aspirations.