KiwiSaver
Your KiwiSaver has 2 ways of Growing
Two key components that affect returns:
Provider or Fund Manager (who's looking after your KiwiSaver)
Fund Type - based on your timeframe and risk profile
Fund Type: You have 5 main Fund Types to choose from:
*For illustrative purposes only
As shown above, Income Assets offer more stable but lower returns, while Growth Assets tend to deliver higher long-term returns, albeit with greater volatility along the way. The type of fund you choose will determine the proportion of Income Assets versus Growth Assets in your portfolio.
Timeframe
The longer your investment timeframe, the more likely you’ll want to include Growth Assets in your KiwiSaver, as you'll have more time to weather the market’s normal ups and downs.
Conversely, with a shorter timeframe, you'll likely prefer more Income Assets, since you won't have as much time to recover from market fluctuations.
Here’s a helpful Timeframe & Fund Type guide
*This guide outlines general timeframes and does not account for individual risk tolerance or personal preferences. The allocation between income and growth assets can vary by provider and may fluctuate based on market conditions and expectations. The purpose of this guide is to provide a rough overview of how different fund types are typically structured.
