Choosing a fund
To help choose the right fund for you, think about how much risk you’re comfortable with, what your goals are and how long you’ve got to invest.
As a general rule – the longer you’ve got until you want to access your savings, the more investment risk you can take. If you’ve got a longer investment timeframe, you’ve got more time to recover any losses. When taking greater risk, there is more potential for greater returns. Use our help me choose tool to choose a fund that may suit you.
Ngaire and Pete are in their early 30s and have just withdrawn their KiwiSaver savings and bought their first home. Because it’s unlikely they’ll be able to access their KiwiSaver savings until retirement, Ngaire and Pete have decided the Growth Fund is the right place for their money. They feel comfortable taking a long-term view and have both made a commitment to riding out the ups and downs of the market without needing to exit the fund.
James (age 62) is going to retire at 65; he’s going to keep his savings invested with KiwiSaver and top up his NZ Super with a regular withdrawal from his KiwiSaver savings. His priority is to protect his savings from the bigger ups and downs associated with higher risk funds. James has chosen to keep his money in the Conservative Fund because of its lower risk profile.
Remember that making sure you’re in the right fund for your situation is one of the biggest differences you can make to your KiwiSaver account. Read about the different funds or use our help me choose tool to choose a fund that may suit your investment timeframe. If you are a member of the ASB KiwiSaver Scheme you can change your fund online using FastNet Classic, ASB’s internet banking service.