Best Performing KiwiSaver Funds

This is a perfectly reasonable question if you’re unfamiliar with the financial markets world. Simply put, your savings are invested in various assets with the expectation of growth in value. The main metric differentiating the best KiwiSaver funds from the rest is the return on investment. The assets that make up your KiwiSaver funds may include cash, bonds, fixed interest, property, and shares.

Cash, bonds, and fixed interest are classified as income assets, which make up a part of your KiwiSaver funds. These are generally more stable assets that carry lower risk and likely generate lower returns in the long run. The more conservative funds invest a larger proportion of money into these assets for those seeking a lower-risk investment. You can still aim to get the best KiwiSaver returns amongst this class of KiwiSaver options when looking for stability. On the other hand, property and shares are growth assets. Growth assets are likely to exhibit short-term volatility and are generally considered higher-risk. However, these assets focus on capital growth and income, and the best KiwiSaver funds are those that maximise returns.

Nonetheless, it is important to note that maximising returns isn’t the only factor people are concerned about. Some funds structure their investment strategy based on ethical, religious, and environmental beliefs. Hence, for some people, those may be the best KiwiSaver funds for them. 

All of this information is publicly available for all Kiwis seeking clarity about where their money is being invested. Researching 30+ investment companies will take you a fair bit of time to find the best KiwiSaver returns. We’ve already done the research and continue to do so consistently to ensure you’re getting up-to-date information. You can simply submit a HealthCheck form to find the best KiwiSaver funds for you.

Even funds with the best KiwiSaver returns will have drops in value from time to time. Several factors could cause fluctuations in value. Market movements, economic conditions, and the types of investments making up your KiwiSaver funds can influence their value.

Market Volatility: The value of your investment can go up and down quite a bit. This is because the financial markets where your money is invested can be very volatile. Sudden changes are caused by things like big news stories, the state of the economy generally, or investor confidence. The best KiwiSaver funds navigate through market volatility and come out on top.

Type of Asset: Funds offer different types of investment assets, such as shares, bonds, property, and cash. Each of these assets has its own level of risk and potential return. If you choose to invest in higher-risk assets, like shares, your investment may go up or down a lot. By choosing lower-risk KiwiSaver options that invest mostly in bonds or cash, your investment may not change much in value. 

Fund Performance: It’s important to note that not all KiwiSaver funds perform the same, as they’re managed differently by each provider. Factors that influence fund performance include where the managers invest your money, their fees, and the state of the economy. So, it’s important to understand how your fund is doing compared to the best KiwiSaver funds out there.

Contributions and Fees: The fees charged by providers can have a big impact on your returns. These fees cover things like managing your investments, running the scheme, and providing other services. Although they may seem small, fees can add up over time and eat into your investment returns. That’s why it’s important to understand how fees work and choose amongst the best KiwiSaver funds that charge competitive fees.

For the best KiwiSaver funds to exist, others will have to underperform so that a natural order is formed. Here we assess all KiwiSaver options and rank the best KiwiSaver returns in each fund category. 

Through your account, you can check out your existing returns on investment. However, you’re left wondering how your provider compares against the industry average and the best KiwiSaver funds. Your KiwiSaver options are plentiful, but are you in the right one? 

Here at the National Capital website, you can analyse the most up-to-date figures on the best KiwiSaver funds available. How does your fund measure compared to the top performers?

If you’re happy with the current performance and it compares well, great! On the other hand, if you’re not getting anywhere near the best KiwiSaver returns, you should investigate further. How long has your fund been underperforming? If it is just a short period of time, it may well be an anomaly. However, if your fund has underperformed across multiple years, it may be time to consider other KiwiSaver options. 

All companies providing KiwiSaver funds display their past performance for public record. These results are generally updated quarterly on their respective websites. Thus, you can take it into your own hands and compare results against the best KiwiSaver funds listed here. We have chosen a period of 5 years as a good measure to track fund performance and consistency. Alternatively, you can complete our HealthCheck application and identify the best KiwiSaver funds for you.  

Remember, there are many other factors to consider when looking at your KiwiSaver options. Rather than making a rash switch, talk to us to make an informed decision.

Most providers will have between 5 and 6 KiwiSaver funds for you to choose from. What differentiates them is the range in risk, volatility, and potential to offer the best KiwiSaver returns. 

Your KiwiSaver options may range from cash to aggressive funds. Here’s a breakdown of the 6 types of KiwiSaver funds offered: 

• Cash Fund (Risk Profile: 1/7)
• Conservative Fund (Risk Profile: 3/7)
• Moderate Fund (Risk Profile: 4/7)
• Balanced Fund (Risk Profile: 4/7)
• Growth Fund (Risk Profile: 5/7)
• Aggressive Fund (Risk Profile: 6/7)

Choosing between these KiwiSaver options should really depend on your circumstances. If you’re young and intend to invest long-term, then you may consider one of the higher-risk KiwiSaver funds. On the other hand, if you are about to retire, you are looking for stability in your investment. Therefore, picking one of the lower-risk funds offers stability. 

Lower-risk funds typically invest in assets that are deemed to be much less volatile and exposed to external shocks. Those investments are typically held in cash or government bonds for a low yet stable return. 

Higher-risk funds will typically invest in listed companies around the world and multiple industries. These types of companies are usually left much more exposed to the overall economic environment and thus more volatile. However, there is the opportunity for higher returns when invested in the right companies in the long run. Providers aim to offer the best KiwiSaver funds in each category by offering higher returns than their competition.

Is it a good idea to split my savings across multiple KiwiSaver funds?

There are a lot of KiwiSaver options to choose from, and this can make it hard to decide. Some people don’t know that you can split your savings into multiple funds offered by your provider. 

This gives you the ability to split funds based on risk and reward. If you are nearing retirement and have a sizeable amount of money saved, you may want stability. Normally, stability comes with a lower ROI in the form of Moderate and Cash KiwiSaver funds offered. However, if your risk tolerance is naturally high, you may seek to split your savings between a High Growth Fund and a Moderate Fund. That way, you can also aim for the best KiwiSaver returns through a growth-oriented investment.

You may also be in your teens or early twenties and seek to split your savings between multiple KiwiSaver funds. At this age, your risk tolerance is generally higher than that of someone nearing retirement. This is partly because your balance is much lower (less to lose), and because there’s plenty of time until retirement. With your first home purchase in mind, your savings can be split between different funds. You may seek the best KiwiSaver returns possible in a short period of time, but also some stability. As an example, partly investing in a Growth or Moderate Fund to hedge against the high volatility of High Growth Funds.

The split ratio of savings in different funds is also completely up to you. For example, you can invest 80% into a High Growth Fund and 20% into a Moderate Fund. Alternatively, you may have 60% in Moderate, 20% in Growth, and 20% in a High Growth Fund. This allows you the flexibility to get the best KiwiSaver funds more precisely aligned with your short and long-term goals.

In most cases, KiwiSaver funds can only be withdrawn for the purchase of a first home or for retirement. In both of these scenarios, you can withdraw your funds as a lump sum should you choose to. Whether it is a good idea or not depends entirely on your circumstances and financial goals. 

People withdrawing their KiwiSaver funds to purchase their first home will usually do so in a lump sum. This is typically necessary to get a big deposit together and get financing with favourable terms. However, if they don’t need to, they may choose to keep their savings in the best KiwiSaver funds possible. Nonetheless, according to Kainga Ora, at least $1,000 must remain on your account after withdrawing. 

Once you’ve reached the age of retirement (currently 65), you are also eligible to withdraw your KiwiSaver funds. Again, the choice to do it as a lump sum is yours. However, for many retirees, it is recommended that they continue investing and seeking the best KiwiSaver returns. The best KiwiSaver funds will continue providing annual returns, and thus, it can be beneficial to your long-term security. 

Of course, the key purpose of the best KiwiSaver funds is to provide you with some financial security post-retirement. Naturally, you will rely on regular withdrawals to help maintain a certain lifestyle when you stop working. Some providers, like Westpac, have minimum withdrawal requirements. For regular withdrawals, they require a minimum of $100 a month and a minimum of $500 for lump sum withdrawals. You should check your withdrawal policies to avoid any related fees. 

To discuss the best KiwiSaver funds and the most appropriate for you, contact National Capital today. We’re the go-to KiwiSaver fund finder for thousands of Kiwis.

As already mentioned, there are multiple KiwiSaver options to choose from. You have KiwiSaver funds ranging from Conservative to Aggressive and Balanced in between. As the names suggest, different investment types have different risk and reward strategies that they implement. Choosing between KiwiSaver funds is largely dependent on your risk tolerance. However, you must also consider your circumstances and financial goals, both long and short term.

KiwiSaver options generally come with a Risk Profile rating that you should look for before making a decision. The lower the risk rating, the lower the potential returns, and vice versa. Lower-risk KiwiSaver options also offer more stable investments that don’t fluctuate as frequently and rapidly as their higher-risk counterparts. Low-risk assets typically include investments in fixed interest securities and moderate exposure to equities. On the other hand, high-risk KiwiSaver options primarily invest in international equities with potentially high returns but also high volatility.

The official IRD website mentions that there is a range of KiwiSaver funds to suit your needs. It also touches on the fact that different KiwiSaver options are available with different amounts of potential risk and return. However, it stops short of offering financial advice on which solution is the right one for you.

That is where National Capital comes in to help find the best KiwiSaver returns. We offer free, tailored advice to make the choice between KiwiSaver options one that you’re confident about. Although your risk appetite may be high, your life circumstances may be suited to a more pragmatic KiwiSaver investment. Take our free assessment test and get custom recommendations on the best KiwiSaver funds available to you.

You may be looking for the best KiwiSaver funds. However, there is no single answer due to the multiple KiwiSaver options in the market. Moreover, each provider offers a range of KiwiSaver options. While one of their funds may be a top performer, another may lag behind. 

There are over 29 schemes with multiple funds available, so your KiwiSaver options are plentiful. Thus, your mission on finding the best KiwiSaver returns and choosing between the multitude of options can be overwhelming. While a friend may sing praises about a scheme, it may not necessarily be the right one for you. People and their goals differ; therefore, what works for them also differs. 

Back to the question at hand regarding the best performing KiwiSaver options. As different providers offer a variety of funds, the people in charge of each fund also differ. Thus, the team managing the Milford Active Growth Fund may offer the best KiwiSaver funds in the growth category. Meanwhile, in the moderate category, the Aon Russell LifePoints team could outperform the dedicated Milford team and the industry overall.

In summary, the first decision regarding the best KiwiSaver returns should be to pinpoint the fund category suited to you. This will be based on your risk appetite, age, ethics, and beliefs. Only then can you compare schemes in your KiwiSaver fund finder journey and select the best KiwiSaver funds for you. 

As a specialist on analysing the best KiwiSaver returns, we use a combination of technology and manual, specialised analysis to provide custom recommendations. We’re aiming to simplify the process and really tailor your KiwiSaver options down to a handful suited to you. Our advice is free, and there’s no obligation to follow through with recommendations. We aim to get Kiwis to make an active decision on their KiwiSaver options.

What makes some KiwiSaver funds a good investment over others?

KiwiSaver funds that offer solid and consistent returns over a long period of time are typically what you look for. You’ve landed on the perfect web page that periodically tracks the best KiwiSaver returns in each fund category. You can assess your KiwiSaver options yourself, or you can get in touch with us for a guided walkthrough. We take into consideration your personal circumstances to narrow down the best KiwiSaver funds tailored for you.

Fees, also play a role in the difference between your wide range of KiwiSaver options. If the difference in the performance of two competing KiwiSaver funds is only slight and the fees differ significantly, your best option is the cheaper one. However, this also depends on a case-by-case basis, as the fee structure is often determined by total savings. 

A track record is also a crucial factor in selecting between KiwiSaver options. We generally recommend funds with a long proven track record over those with higher returns but under 5 years old. This is because investing is a long-term game. Anyone can get lucky in the short term. What differentiates the best KiwiSaver funds from the rest is consistently high returns over a long period. 

Naturally, your financial goals also come into play when choosing the best KiwiSaver funds for you. Even if the best KiwiSaver returns are in growth funds, the volatile nature of these funds isn’t good for everyone. It isn’t only a matter of risk tolerance. If you frequently withdraw from your savings, it can lead to significant losses if done at the wrong times. 

Your KiwiSaver options are plentiful. If you need guidance on choosing the right one for you, National Capital is here to help.

According to Stats NZ, the household savings ratio as a percentage of net disposable income is around 1.3%. Do you think you could be doing more? Is chasing the best KiwiSaver returns a good idea?

For one reason or another, it is safe to say that Kiwis struggle with saving. This is exactly why KiwiSaver options are a great way to save and secure long-term financial freedom. Granted, investing in the best KiwiSaver funds isn’t the only way to a comfortable retirement, and it shouldn’t be. Your investment portfolio should be diversified, and KiwiSaver options are a great tool to have on your belt. 

A great reason why KiwiSaver funds are a good investment option is due to the ease of the entire process. Once you are enrolled and have selected among the best KiwiSaver funds, you don’t need to do anything else. The percentage of your salary is taken automatically from your payslip and invested into your account. Thus, for a nation that finds saving difficult, this is a hassle-free investment opportunity. Moreso, the minimum 3% of your salary invested is greater than the average household savings rate of 1.3%. 

If one of your financial goals is to retire comfortably, you should be carefully considering your KiwiSaver options. Naturally, that depends on what your account balance is when you are retiring. Thus, the earlier you analyse the best KiwiSaver funds, the more accurately you can focus on your retirement goals. We’re able to project your account balance when you retire by entering your contribution rate and annual returns. Getting the best KiwiSaver returns possible is part of this process. Get in touch with us to see if you’re where you want to be for retirement.

How does the performance of KiwiSaver funds compare to other investment options, such as individual stocks or traditional savings accounts?

Some of the best KiwiSaver funds tend to deliver annual returns of around 8% in the long term. However, it’s a big world out there, and you have many choices available in addition to KiwiSaver options. 

One of these alternatives to even the best KiwiSaver returns is trading individual stocks. Trading single stocks can indeed provide much higher returns than a diversified portfolio like the various KiwiSaver options offer. However, investing in single stocks is much riskier and more volatile. Furthermore, it takes a good understanding of the financial markets, timing, and analysis of the companies you invest in. 

Another alternative to the best KiwiSaver returns is a traditional savings account. A savings account will pay interest on the savings you have accumulated over time. This option typically offers lower returns than the best KiwiSaver funds. However, it provides high liquidity as you can withdraw money instantly. Savings accounts may also not always keep up with inflation, which can erode the purchasing power of your saved amount. 

Other investment options do not come with the government incentives that KiwiSaver options come with. Those incentives are a yearly government contribution and regular employer contributions. With other investments, you are normally solely relying on performance alone.

In summary, the choice between the best KiwiSaver returns and other alternatives depends on goals, risk tolerance, and investment knowledge. The best KiwiSaver funds offer a really good annual return as well as a hands-off approach to investing. On the other hand, savings accounts offer stability and liquidity, while individual stocks can offer higher returns at higher risk. That is not to say that you should only invest in KiwiSaver options. Depending on your financial goals and circumstances, a balanced approach could mean investing in all three of the aforementioned options.