Insights
Choosing the right fund type
The basics on how to choose the right fund when it comes to KiwiSaver

Generally, most KiwiSaver providers will offer to invest your savings in a conservative, balanced, growth or aggressive (high growth) fund, although there are some other more specialised ones available (e.g. real estate or Australasian equities). Each one invests in different things that have varying levels of risk.
For example, a growth fund may invest over 70% of its funds in growth assets (like shares) and therefore will have the highest risk. However, it’s likely to deliver the highest returns in the long term. A conservative fund on the other hand will likely invest 80% or more in ‘income assets’ (such as cash or bonds) and therefore carries lower risk. But it’s also likely to deliver lower returns in the long term.
In the same period of time, the aggressive and growth funds are generally more volatile which means they will go up and down more often and more severely, while conservative and balanced funds won’t go up and down as much, but they also have less potential for growth.
Everyone has a different personal risk tolerance generally based on how long you will be invested for and how you are likely to behave in a downturn. It’s your choice which fund your KiwiSaver is invested in, and you can change your fund type at any time.
Pathfinder KiwiSaver Plan has four fund types – Conservative, Balanced, Growth and High Growth. We explain the difference between them and show their rate of return here.
Still not sure which fund type is for you - take our quiz. View our savings calculator here.
Pathfinder Asset Management Limited is the issuer of the Pathfinder KiwiSaver Plan. A Product Disclosure Statement for the offer is available at pathfinder.kiwi. Learn more about how we invest ethically by reading our Ethical Investment Policy & Exceptions Register on our website. We encourage all investors to receive financial advice before making their investment decision. This blog is for informational purposes only and does not constitute a recommendation and should not be taken as a recommendation of any course of action.