Abacus Group

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KiwiSaver fund roulette

Helen Stuck

Finding the right fund for your Investment needs

By Scott Crocker

Choosing the right KiwiSaver fund is an important decision that can have a significant impact on your retirement savings. With so many different types of KiwiSaver funds available, it can be overwhelming to decide which one is best for you. Here's a quick guide to understanding the different types of KiwiSaver funds and choosing the right one for your needs.

  1. Growth funds: Growth funds are designed for investors with a long-term investment horizon, such as those who are many years away from retirement. These funds are typically invested in higher-risk assets, such as shares and property, with the potential for higher returns over the long term.

  2. Balanced funds: Balanced funds are a middle ground between growth and conservative funds, with a mix of higher-risk and lower-risk assets. These funds may be suitable for investors with a medium to long-term investment horizon who are looking for a balance of growth and stability.

  3. Conservative funds: Conservative funds are designed for investors who have a shorter investment horizon or who are more risk-averse. These funds typically invest in lower-risk assets such as fixed interest and cash, with lower potential returns but also lower risk.

  4. Cash funds: Cash funds are the most conservative KiwiSaver funds, investing primarily in cash and short-term fixed interest investments. These funds are designed for investors who want to preserve their capital and are not looking for high returns.

When choosing a KiwiSaver fund, it's important to consider your investment goals, risk tolerance, and time horizon. If you have a long-term investment horizon and are comfortable with higher risk, a growth fund may be a good option. If you have a shorter investment horizon or are more risk-averse, a conservative or cash fund may be a better fit.

In conclusion, choosing the right KiwiSaver fund is a key factor in achieving your retirement savings goals. By understanding the different types of funds and selecting the one that best fits your needs, you can ensure that your KiwiSaver investments are working for you.