Reference
NZ KiwiSaver Fund Returns and Fees
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KiwiSaver funds are grouped by how much they hold in growth assets (shares and property) versus income assets (cash and bonds). More growth assets means higher expected long-run returns but bigger ups and downs along the way. The ranges below are long-run averages to illustrate the trade-off, not a forecast; actual returns vary year to year and fund to fund.
KiwiSaver Calculator KiwiSaver Fee Calculator Managed Fund vs KiwiSaverFund Types, Growth Assets and Long-Run Returns
| Fund type | Growth assets | Risk | Long-run return (typical) |
|---|---|---|---|
| Defensive / Cash | 0 to 10% | Low | 2 to 4% |
| Conservative | 10 to 35% | Low-Medium | 3 to 5% |
| Balanced | 35 to 63% | Medium | 5 to 7% |
| Growth | 63 to 90% | Medium-High | 7 to 9% |
| Aggressive | 90 to 100% | High | 8 to 11% |
Fees Matter as Much as Returns
| Point | Detail |
|---|---|
| Typical annual fund fee | Roughly 0.2% to 1.5% of your balance, depending on the fund and provider |
| Why it matters | Fees are charged every year on your whole balance, so over decades a 1% difference can cost tens of thousands of dollars |
| Returns are quoted after fees | Published fund returns are usually after fees but before tax; tax is at your PIR (capped at 28%) |
| Switching | You can change fund or provider at any time for free |
The right fund type depends mostly on your time horizon. For money you will not touch for decades (a young saver, or retirement decades away), a growth or aggressive fund usually suits, since there is time to ride out the dips. For money you will need soon (a first home within a couple of years), a conservative or defensive fund reduces the risk of a fall just before you withdraw.