Choosing the right KiwiSaver fund
The fund you choose can make a bigger difference to your KiwiSaver balance than almost anything else. Here’s how the main fund types differ, and how to pick one that suits you.
KiwiSaver funds range from defensive and conservative, which hold more cash and bonds and move less, to growth and aggressive, which hold more shares and property and move up and down more. The right fund mainly depends on when you’ll need the money: sooner usually means lower risk, while decades away usually means more growth.
Reviewed by Kyle Hasson, Insurance and KiwiSaver Adviser (FSP1010252) · Updated October 2026
How we help
- Review your current fund: many people are still in the fund they were first given.
- Match it to your goals: first home soon, or retirement decades away.
- Compare fees and providers: small differences add up over time.
- Plan changes carefully: switching after a market fall can lock in losses.
The main fund types
| Fund type | Mostly invested in | Ups and downs | Often suits |
|---|---|---|---|
| Defensive | Cash and bonds | Lowest | Needing the money very soon |
| Conservative | Mostly cash and bonds | Low | A short timeframe |
| Balanced | A mix | Medium | A medium timeframe |
| Growth | Mostly shares and property | Higher | Longer timeframes |
| Aggressive | Mostly or all shares | Highest | Long timeframes and comfortable with big swings |
How to choose
Timeframe first: if you’re buying a home in the next few years, a lower-risk fund helps protect your deposit. If retirement is 20 or more years away, a higher-growth fund has historically produced more over the long run, though with bigger ups and downs along the way.
Then your comfort with risk: if seeing your balance drop would make you want to switch, a slightly lower-risk fund you’ll stick with may serve you better. Sorted’s free Fund Finder is a good way to compare funds.
Fees matter too
KiwiSaver funds charge fees, usually a percentage of your balance plus sometimes a small fixed fee. Over decades, even a small difference in fees can add up to thousands of dollars, so it’s worth comparing like-for-like funds.
Sources and further reading: Sorted: Fund Finder
Kyle Hasson is an Insurance and KiwiSaver Adviser at Moneyplant in Papakura (FSP1010252), with a New Zealand Certificate in Financial Services (Level 5). Meet the team
This is general information only and isn’t personalised financial advice. Everyone’s situation is different, so please talk to one of our advisers before making decisions about your KiwiSaver.
Fund types questions
Can’t see your question? Give us a call or send us a message. See our public disclosure for details of our fees and commissions.
Can I change my KiwiSaver fund?
Yes, you can usually switch funds or providers at any time. Switching after markets have fallen can lock in losses, so it’s worth getting advice first.
What is a default KiwiSaver fund?
If you don’t choose, you’re placed in your employer’s chosen scheme or a government-appointed default provider’s balanced fund. It may not suit your goals.
Which KiwiSaver fund has the best returns?
Past returns don’t guarantee future returns, and higher-growth funds have bigger ups and downs. The right fund is the one that suits your timeframe and that you’ll stick with.
Is KiwiSaver advice free?
Moneyplant may receive a commission from the provider. Where a provider doesn’t offer an adviser fee rebate, an advice fee applies, such as 0.25% a year for Kernel Wealth. See our public disclosure.
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