Kiwi Saver, explanation of the funds?

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Forums › Finance and wealth management › Kiwi Saver, explanation of the funds?

lNomNoml

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#220194 30-Jul-2017 19:07

Just wondering if anyone could explain the different Kiwi Saver funds please, I am with ASB for this and I can't seem to find a dead simple explanation of what each one is and what to choose. I currently have mine as attached:

I am looking to save up for a house in a few (up to 5 years) time.

cadman

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#1833868 30-Jul-2017 19:18

https://www.asb.co.nz/kiwisaver/compare-kiwisaver-funds.html?highlight=4

The "Moderate Fund" seems to be the recommended one for someone with your plans.

lNomNoml

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#1833882 30-Jul-2017 19:47

cadman:

https://www.asb.co.nz/kiwisaver/compare-kiwisaver-funds.html?highlight=4

The "Moderate Fund" seems to be the recommended one for someone with your plans.

Thank, I saw that but worried if I change it all to 100% moderate I lose somewhere, but I guess with these kinds of things you will always lose somewhere.

Jase2985

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#1833894 30-Jul-2017 19:59

Growth = More risk
Moderate
Balanced
Conservative
Cash = Less Risk

less risk funds will have a low return on investment, high risk ones will have a high return on investment but sometimes will return in the negatives.

if you want the money in the short term then go for a lower risk fund, longer term you can ride out any negative returns on the higher risk ones and as you get closer to retirement you can lower the risk

mattwnz

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#1833926 30-Jul-2017 20:53

I would have thought of you were wanting to withdraw within the next few years for a house, you would want to be in quite a low risk fund.