It’s a personal decision to identify the fund that is right for you – Growth, Balanced or Conservative.
In very general terms some of the considerations you may want to take account of are your age (and how many years you have to retirement), whether you have bought your first home and are you comfortable taking some risk. Here’s a quick comparison of some of the characteristics of our funds:
|Growth Fund||Balanced Fund||Conservative Fund|
|Return focus||Medium to high||Medium||Modest|
|Likely fluctuation in value||More than the Balanced or Conservative Funds||More than Conservative Fund but less than Growth Fund||Less than both the Growth Fund and Balanced Fund|
|Minimum suggested time frame||10+ years (long term)||3-10 years (medium to long term)||Up to 3 years (short to medium term)|
|Management fee (we want our fee to be market average)||1.25% p.a.||1.10% p.a.||0.80% p.a.|
You may be interested to know that based on recent KiwiSaver Scheme data, less than one in every ten people actively choose a conservative fund. This may be right for people with a shorter time horizon or low tolerance for risk, but more than nine in ten people actively choose growth or balanced funds.
In addition to our management fee, an annual administration fee of $27 is also charged (except for balances below $1,000).
As well as deciding the right fund for you, you will also need to think about what contribution rate is right for you and calculate your PIR (tax rate). You can use our calculators or contact us for further help.
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