Conservative, Balanced or Growth - which fund is best for you?
We understand that your needs are unique – this is why you can take advantage of one of three
diversified KiwiSaver Funds with the choice of Conservative, Balanced or Growth.
When choosing your fund it’s important to think about your investment timeframe (how long you have to
save until retirement) and your objectives (growing your savings or planning to buy your first home).
Historically, growth assets (shares, property and infrastructure) produce the best long-term results.
This makes them ideal for your KiwiSaver fund, if like most KiwiSaver members you have a long time until
retirement.
But if you are close to retirement or about to buy your first home, it may be better for you to have
more income assets (fixed interest and cash). This is because in the short-term, the returns from income
assets are generally more stable than growth assets.
More On The Assets?
Shares (also known as Equities): represent a part of ownership in a company. Shares are a
common form of investment that have the potential to increase wealth over the long term.
Property & Infrastructure: investing in direct property (e.g. houses, offices or factories)
and direct infrastructure (e.g. roads, airports or utilities) or indirectly via securities held
in a property or an infrastructure trust or a company.
Fixed Interest: represents loans to governments, banks and corporate organisations.
In return for the loan, the borrower generally pays a set rate of interest for an agreed length
of time.
Cash: typically a short-term, interest-bearing product such as deposits and bank bills.
Cash traditionally produces a stable investment return but has the lowest potential for
return over the long-term.
The above indicative allocations represent the anticipated long-term allocation to the
income and growth asset classes held for each respective Fund. These asset allocations will vary from the
indicative benchmarks, the benchmarks themselves may vary, and the actual allocations within each asset class
will vary, according to the Manager’s decisions from time to time as to the suitable investments for a
conservative, balanced or growth portfolio (as the case may be).