What is the Best KiwiSaver Fund?
When it comes to KiwiSaver, there's no one-size-fits-all answer. With over 30 providers and more than 300 funds available, choosing the best KiwiSaver fund can feel overwhelming. The right choice depends on YOUR unique needs, goals, and preferences. Whether you want higher returns, or are passionate about ethical investing, finding the perfect KiwiSaver fund is a personal journey.
So, how do you choose the right KiwiSaver provider and fund for you? Let’s break it down.
What to Consider When Choosing Your KiwiSaver Provider and Fund
Returns: Returns can vary significantly between funds. What’s right for you depends on your stage of life and risk tolerance. Some funds are designed for higher growth with more risk, while others are more conservative. It’s important to match your fund’s risk profile with your investment timeframe.
Ethical Investing: Ethical investing exists on a spectrum, and while many providers are integrating ethical considerations into their funds, some make it a stronger focus. If ethical investing is important to you, look for a fund that aligns with your values - whether that’s prioritising sustainability, supporting social responsibility, or excluding industries you’re passionate about avoiding.
Fees: Fees vary widely between providers. While higher fees can sometimes mean better service or returns, you don’t want to overpay, as fees can eat into your long-term returns. Passive funds generally have lower fees compared to active funds, which tend to be more expensive due to their hands-on management.
NZ-Owned vs. Overseas Owned Providers: Some KiwiSaver providers are majority New Zealand-owned, while others are run by overseas companies. Many people prefer dealing with a Kiwi-owned provider as they’re familiar with the local market and often have more skin in the game. However, some don’t mind working with internationally owned providers, it all comes down to preference.
Stage of Life: Your investment strategy should align with your timeframe. If you're many years away from retirement or purchasing your first home, a higher-risk fund can work to your advantage, offering the potential for greater returns over time. However, if you're approaching retirement or planning to buy your first home soon, it's important to prioritise stability by investing in a lower-risk fund, protecting your balance from unnecessary volatility.
Speak to a KiwiSaver Adviser
The best way to figure out which KiwiSaver fund and provider is right for you is to speak to a KiwiSaver adviser. Here’s why:
Personalised Advice: A KiwiSaver adviser takes the time to understand your unique financial goals, preferences, and risk appetite. They can recommend the best provider and fund options that suit your needs.
It’s Free and Easy: Speaking with an adviser doesn’t cost you a thing. You’ll get expert advice without any hidden fees, making it a low-pressure way to ensure your KiwiSaver is in the right place.
Ongoing Support: KiwiSaver isn’t a one-time decision. Your financial goals may change over time, and market conditions will fluctuate. By working with an adviser, you ensure your KiwiSaver is continually reviewed and adjusted as needed to keep it aligned with your goals.
At MoneyGuide, we connect you with a dedicated KiwiSaver adviser who will keep an eye on market trends and changes to make sure your fund remains on track. No more worrying if your KiwiSaver is performing well or is with the right provider.
Ready to Find the Best KiwiSaver Fund for You?
With so many options out there, it’s easy to feel overwhelmed. But remember, the best KiwiSaver provider is the one that fits your personal goals and values. Get in touch with us today for free, expert advice and start building your KiwiSaver with confidence.
