Cash KiwiSaver Funds
If you’re looking for the ultimate in investment security with minimal risk, cash KiwiSaver funds might be just what you need. These funds are designed to provide maximum safety for your investment, making them suitable for those needing to prioritise stability over growth.
What are Cash KiwiSaver Funds?
KiwiSaver funds consist of a combination of Growth Assets and Income Assets. The split between growth and income assets is adjusted depending on your chosen risk profile.
Income Assets: These low risk assets usually include cash and bonds. They are designed to provide regular income to your fund through interest payments, offering stability and consistent returns.
Growth Assets: These higher risk assets encompass shares and property. They aim to deliver capital growth over time, with returns that can fluctuate due to market conditions.
Cash funds are typically made up of entirely of income assets, meaning they invest 100% of their portfolio in low-risk, highly liquid investments. This approach prioritises the safety and preservation of capital, offering a stable value with very minimal risk.
Who Should Consider Investing in Cash Funds?
Short-Term Investors: If you need to access your funds in the very near future, cash funds offer a stable and secure option to park your savings until you’re ready to withdraw.
Things to Watch Out For
While cash funds offer excellent security for those who need it, they’re not ideal for everyone. If you're in a cash fund when you don’t need to be, you’ll miss out on substantial growth opportunities over the long term. Cash funds offer lower returns compared to other KiwiSaver options, and inflation can erode the value of your savings over time. If you’re aiming for significant growth and a long-term investment, cash funds may not be the best fit.
Determine Your Risk Tolerance
If you want to know whether a cash fund would suit your investment profile and timeframe, our KiwiSaver experts can run through a quick questionnaire with you, and get you into the right fund – free of charge. Get started.
Is your KiwiSaver fund performing as well as it could be?
Find out how your KiwiSaver fund compares.