Most providers offer a range of different funds to invest in. They’re each designed with different risk and return profiles and it’s important to choose the right fund for you.
For example, at ANZ Investments our funds range from a growth fund which aims to deliver higher returns over the long term but may have higher fluctuations in value, to more conservative funds, which have lower risk but potentially lower returns.
The right fund for you depends on your situation. For example, those who have a long time to go until retirement may benefit from a growth fund because it aims to deliver higher returns over the long term – and the inevitable ups and downs should balance themselves out over that period. Conversely, those who are closer to retirement or are planning to use their KiwiSaver savings to help buy their first home in the near future may benefit from investing in a more conservative fund because it gives them greater certainty about how much they’ll have when they need to withdraw funds.
Or, you can choose our Lifetimes option, where your savings are automatically invested in one of our funds based on your age. As you reach a different age range, your savings are automatically moved to a different fund with a more appropriate level of risk and expected return for an average person of your age.
It can be hard choosing, so if you’d like some help you can take our quick Risk Profile Questionnaire or get free advice from one of our financial advisers.