Comparing Fund Performances
Understanding how your KiwiSaver fund stacks up against others can feel overwhelming with all the information out there—especially when it seems like everyone is saying different things. We’ve put together a straightforward guide to help you compare your KiwiSaver fund performance without the fuss.
Use Comparable Information
One big issue is that KiwiSaver providers don’t always report their performance data in the same way. For example, one provider might say they’re the top performer for the past year using data up to May, while another uses data up to July. This can be confusing if you're trying to figure out who’s really performing best.
To make a fair comparison, always use data from the same date range.
Consistency Matters, Forget the 1 year return.
The 1-year return can be tempting to look at, but it’s not the best measure of a fund’s long-term performance. It's often a flashy number that doesn’t tell the whole story. Instead, look at the 3, 5, and 10-year averages. These longer-term metrics give a better picture of how consistently a fund performs.
Historic Performance
As displayed above, Provider A might show strong 1-year returns, but their 3-year returns are much lower compared to Provider B. The graph below shows how your KiwiSaver balance would have grown or dropped if you had been invested in each of these funds over the last 3 years.
How it affects your investment
Don’t chase the click bait, consistency is key. We frequently hear from clients who are confused, saying, “My funds have gone backwards, but apparently I’m with the top performing fund?” This often happens because short-term results can be misleading.
Compare Fees and Performance
When it comes to fees, don’t get too caught up in just looking for the lowest fees. Instead, focus on "net" performance, which is the performance of the fund after fees are deducted. For instance, if you pay $50 in fees and your fund returns $500, that’s great. But if you pay $100 in fees and your fund returns $1,000, that’s even better.
By comparing net returns (Gross Performance – Fees), you get a clearer picture of the overall value of the fund. Usually, the funds with the best net performance are not the cheapest or the most expensive but somewhere in between.
Understand the Risk Level
KiwiSaver funds can vary significantly in terms of risk. A growth fund from one provider might be riskier than a growth fund from another. Each fund is designed with a different risk profile, so it’s important to understand the risk level of your fund.
The industry uses a risk profile ranking from 1 to 7, with 1 being the lowest risk and 7 being the highest. Knowing your fund’s risk profile helps you understand what you’re getting into.
Find Out More
At MoneyGuide, we're here to make KiwiSaver simple for you. We offer free, independent advice to help you make sure your KiwiSaver is set up to meet your needs with a top-performing provider.
Want a personalised analysis of your KiwiSaver fund? We can compare it against top performers in the market and email you a detailed report—at no cost to you. Our goal is to make sure every KiwiSaver fund is working hard for you!
Fill out the form below, and we'll get in touch. Let us help you get your KiwiSaver fund humming!
Stay consistent
Comparing KiwiSaver funds isn’t as simple as it seems? A fund with flashy 1-year returns might look impressive, but it’s the long-term performance and net returns after fees that truly matter. And remember, the risk level of your fund can make a big difference too! If you're feeling lost in the sea of numbers and claims, we’re here to help. Let us simplify things and make sure your KiwiSaver is in top shape!