Choose a fund
These short questions will help you understand your attitude towards investment risk and help you decide which type of investment fund may suit your needs. This is important because your attitude to risk is one of the main factors when deciding how to invest your money. Remember these questions are intended to guide only and we strongly recommend you seek professional investment advice from a financial adviser to help you plan for your future.
Disclaimer: This is a tool to assist you to determine the type of investment fund which may best suit your risk profile. This is not an investment or financial plan and should be treated as a guide only. We recommend you discuss your investment options with your financial adviser prior to making any choices. Neither the Manager, Administration Manager nor Supervisor accepts any responsibility for the investment option you choose or for the performance of your investment in respect of the Scheme. For more information refer to our product disclosure statement.
Recommended investment type: Cash fund
Your only objective is to protect the value of your KiwiSaver money. You may be already retired, close to retirement, or you would like to use some of your KiwiSaver money for a first home withdrawal and therefore you are more concerned with protecting your balance than growing it.
A strategy that invests in cash and short term fixed interest investments will help you to achieve returns that are low but stable.
Recommended investment type: Conservative Fund
Protecting the value of your KiwiSaver money is your main investment goal. Retirement might be just around the corner, you may want to use some of your KiwiSaver money for a first home withdrawal, or you’re just naturally wary about market volatility. You want consistent investment returns, and classify yourself as risk-averse. You know a conservative strategy means your KiwiSaver money isn’t likely to grow much faster than the rate of inflation, and that’s fine with you.
A strategy weighted toward income assets will help you reduce risk but still achieve some investment growth.
Recommended investment type: Moderate Fund
You don’t like seeing big variances in your KiwiSaver money, and are focused on reducing the chance of short-term losses while still feeling comfortable you’ll have enough to live on in your retirement. You want to ensure you achieve a moderate rate of growth over the long term, but understand those returns will be lower than a balanced or growth fund.
A 40/60 split between growth and income assets will help you achieve growth with less risk.
Recommended investment type: Balanced Fund
You want a balance between good returns and protecting the value of your KiwiSaver money. You’re prepared to invest for the long term, and are willing to accept some volatility in the short-term providing it means you’ll benefit eventually. Negative returns make you uneasy, but you understand there is some risk to achieve your goal of higher returns over the longer term.
Investing in a combination of growth and income assets will suit you.
Recommended investment type: Growth/Aggressive Fund
You’re prepared to accept a higher level of risk to grow your KiwiSaver money, and have a long investment timeframe to ride out the impact of any negative years. You’re broadly comfortable with returns that fluctuate from year to year, and your primary goal is to grow your KiwiSaver account balance over the long term.
A strategy heavily weighted towards growth assets can deliver higher longer-term returns, but also higher volatility.