There are 5 main KiwiSaver options when it comes to risk and KiwiSaver investment strategy to choose from.
Here is the list of the 5 different KiwiSaver options and their risk type:
KiwiSaver Options | Risk Profile |
Conservative | Lower |
Moderate | Moderate |
Balanced | Moderate |
Growth | Higher |
High Growth | Higher |
Finding the best Kiwi Saver options for you depends on multiple factors such as your risk appetite, investment longevity, and goals. It can be overwhelming to pick amongst the countless KiwiSaver options available. Not only do you have to choose your provider, but also the right fund(s). Then, you have the KiwiSaver contribution options to consider. What percentage of your salary do you want to invest? Will you invest the minimum 3% of your salary or more?
Choosing among KiwiSaver options can be a simple process once you know exactly what you want from your investment.
You can change between KiwiSaver options anytime as your needs and goals evolve. National Capital is here to help you keep track of the best KiwiSaver investment regarding performance. We’re also here to answer any questions from the basics to more specific when it comes to your KiwiSaver options.
As no one can predict the future, being a smart investor consists of analysing existing and previous data for guidance. We understand that your full-time job isn’t to keep track of all the KiwiSaver investment options out there. However, ours is to be an advice and information hub. With the goal of empowering all Kiwis to become financially secure, free advice on KiwiSaver options is key. We use a combination of highly experienced financial advisors and technology to aggregate and track results of KiwiSaver investment options.
AMA
Always Ethical is a boutique fund management group based in Auckland, New Zealand. They specialise in providing ethical investment solutions to New Zealand and international investors.
AMP
AMP Capital and AMP Wealth Management are part of the AMP Group. They share a heritage that spans almost 170 years. They started back in 1849 as the investment management arm of AMP Group.
ANZ
ANZ is one of the world’s largest banks and their businesses serve more than 5 million customers. ANZ manages six funds under its ANZ KiwiSaver scheme and OneAnswer KiwiSaver Scheme, and has total Assets Under Management (AUM) of more than $NZD 14 billion and 581,054 members.
AON
The Aon KiwiSaver Scheme is a relatively smaller KiwiSaver provider. They offer thirteen KiwiSaver funds, ranging from a lower-risk cash fund to a higher-risk growth fund.
ASB
The ASB Kiwisaver scheme has a total Assets Under Management (AUM) of over $10.5 billion and a total number of over 530,000 members.
BNZ
The BNZ KiwiSaver Scheme manages six funds. They have total Assets Under Management (AUM) of over $NZ 2.7 billion and 178,146 clients.
BOO
Booster Investment Management Limited currently manages 16 funds. They have total Assets Under Management (AUM) in their KiwiSaver scheme of over $1.85 Billion and 154,417 members.
PATH
Pathfinder manages seven funds under their KiwiSaver scheme, varying in levels of risk from the Cash Fund to the Shares Fund. As of March 2022, the total Assets Under Management (AUM) for Pathfinder is over $162 million.
CHR
The Christian KiwiSaver Scheme has total Assets Under Management (AUM) of over $NZ 54 million and 1,941 clients.
CRA
Craigs Investment Partners KiwiSaver has Assets Under Management (AUM) of over $NZ 290 million and 5,777 members.
FF
Fisher Funds provides a number of services, including KiwiSaver, managed funds, premium services tailored to wealthy individuals, workplace LifeSaver plans geared towards retirement, and financial advice and they manages seven funds under the KiwiSaver scheme and has an AUM of over NZ $4.16 Billion and 146,952 members.
FFTWO
Fisher Funds Two manages eleven funds under the KiwiSaver scheme and has an AUM of over NZ $2.28 Billion and 103,255 members.
GEN
Generate is a New Zealand owned and operated specialist. The Generate KiwiSaver Scheme manages seven funds and has Total Assets Under Management (AUM) of over $1.7 billion and 83, 213 members, as per the annual fund report of March 2020.
JUN
KW
The Kiwi Wealth KiwiSaver Scheme manages six funds and has total Assets Under Management (AUM) of over $NZ 4.4 billion and 216,616 clients.
Kōura
The Manager of the Scheme is Kōura Wealth Limited, a company incorporated in New Zealand under the Companies Act 1993 on 20 February 2019. Kōura manages the investments of, and administers, the Scheme. Kōura is 100% New Zealand owned, we are very proud of our Kiwi heritage.
LS
The Lifestages KiwiSaver Scheme manages eight funds and has total Assets Under Management (AUM) of over $462 million and 19,200 clients.
MAS
The Medical Assurance Society KiwiSaver Scheme has a total Assets Under Management (AUM) of over $NZ 769 million and 15,117 clients.
MER
The fund management division of Mercer is ranked 82nd in the world for the total assets under management, with Assets Under Management (AUM) totaling $199.7 billion as of 2019. Mercer manages seven funds under their KiwiSaver scheme, varying in levels of risk from the Cash fund to the Shares fund. As of June 2019, the total AUM for Mercer KiwiSaver scheme was over $2 Billion.
MIL
The Milford Plan manages six funds with over 45,000 members and has total Assets Under Management (AUM) of over $2,632 million NZD (as of 30th Sep 2020).
NIK
The Nikko AM KiwiSaver Scheme manages six funds and has a total Assets Under Management (AUM) of over $NZ 7.3 million and 77 clients.
QS
TheQuayStreet KiwiSaver Scheme manages ten funds and has total Assets Under Management (AUM) of over $NZ 187 million and 2,611 clients.
SIM
The Simplicity Kiwisaver scheme has total Assets Under Management (AUM) of over $980 million and 34,062 members.
SUM
The Summer KiwiSaver Scheme manages nine funds and has total Assets Under Management (AUM) of over $NZ 166 million and 4,356 clients.
SUP
The SuperLife Kiwisaver scheme has a total Assets Under Management (AUM) of over $890 million and 4,685 members (As at August 2019).
WES
The Westpac KiwiSaver scheme has six investment options, a cash option, and five diversified options. It has a total Assets Under Management (AUM) of over $6.8 Billion.
Kiwi Saver options that offer solid and consistent returns over a long period of time are typically what you want to look for. You’ve landed on the perfect website that periodically tracks and adjust the best performers in each KiwiSaver investment 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 Kiwi Saver options tailored for you.
Fees, also play a role in the difference between your KiwiSaver investment options. If the difference in the performance of two competing 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 an important factor in choosing between Kiwi Saver options. We generally recommend funds with a long proven track record over another 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 from the rest is consistently high returns over a period of more than 5 years.
Naturally, your financial goals also come into play when choosing the fund that is right for you. No matter how high the returns are in growth funds, the volatile nature of them isn’t good for some. It isn’t only a matter of risk tolerance. If you are withdrawing from your savings often, it can lead to major losses if withdrawn at the wrong times.
Your KiwiSaver investment 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 has been historically low. Before the Covid-19 pandemic began, it was averaging under 1% of disposable income. That changed since the Covid-19 pandemic broke out largely due to the insecurity people were facing in uncertain times.
For one reason or another, it is safe to say that Kiwis struggle with saving. This is exactly why KiwiSaver investment options are a great way to save and secure long-term financial freedom. Granted, investing in Kiwi Saver options isn’t the only way to guarantee a financially 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 investment options are well regarded is due to the ease of the entire process. Once you are enrolled and have selected amongst the available Kiwi Saver options, 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 to do, 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%.
If one of your financial goals is to retire comfortably, you should be carefully considering your Kiwi Saver options. Naturally, that depends on what your account balance is when you are retiring. Thus, the earlier you analyse your KiwiSaver options, 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. Get in touch with us to see if you’re where you want to be for retirement.
Your KiwiSaver investment is held in a trust and managed by professionals. The funds are used by your chosen provider to be invested in various assets, including shares, property, and cash. Even if their business goes under, they can’t use your savings to resolve their financial troubles.
On the other hand, the value of your investment will go up and down depending on how the markets perform. However, KiwiSaver options are expected to grow with time.
Your money is also diversified across a range of different investments, which helps to reduce risk. Different KiwiSaver investment options lead to a diversified portfolio to hedge against any single investment going down in value.
Your money is saved until you retire or purchase your first home and you can’t access it earlier. This can be seen as a good thing because it stops you from spending your savings spontaneously. But it can also be seen as bad because you can’t access the funds any time you want.
Kiwi Saver options are managed by professional fund managers. They invest your money in various assets trying to grow your savings. It can provide peace of mind for some savers, knowing that experts are looking after their money.
While there is no guarantee that you will profit from it, the vast majority of people are doing well.
So, it is justified to say that your KiwiSaver investment is in safe hands.
Some of the best Kiwi Saver options 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 investment options.
One of these alternatives to KiwiSaver investment options is trading individual stocks. Trading single stocks can indeed provide much higher returns than a diversified portfolio like the various Kiwi Saver options offer. However, investing in single stocks is much riskier and volatile. Furthermore, it takes a good understanding of the financial markets, timing, and analysis of the companies you invest in.
Another alternative to KiwiSaver options 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 KiwiSaver investment, 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 being a yearly government contribution and regular employer contributions. With other investments, you are normally solely relying on performance alone.
In summary, the choice between KiwiSaver investment options and other alternatives depends on goals, risk tolerance, and investment knowledge. The best KiwiSaver options 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 Kiwi Saver options. Depending on your financial goals and circumstances, a balanced approach could mean investing in all three of the aforementioned options.
This is a perfectly reasonable question if you’re unfamiliar with KiwiSaver investment strategy or the financial market world. Simply put, your savings are invested into various assets with the expectation of a return on the KiwiSaver investment. The main metric differentiating the best KiwiSaver options from the rest is the return on investment. These aforementioned assets that make up your KiwiSaver investment options 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 Kiwi Saver options. These are generally more stable assets that carry lower risk and likely generate lower returns in the long run. The more conservative KiwiSaver options invest a larger proportion of money into these assets for those seeking a lower-risk investment.
On the other hand, property and shares are growth assets that are also part of your Kiwi Saver options. Growth assets are likely to exhibit short-term volatility and are generally considered higher-risk KiwiSaver investment options. However, these assets focus on capital growth and income and the best are the ones with maximising 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 options for them.
All of this information is publicly available for all Kiwis clarification about where their money is being invested. While researching 30+ investment companies will take you a fair bit of time, we’ve got an easy alternative for you. 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 investment options for you.
