Guide
Growth KiwiSaver funds, explained
Growth funds are built for money with a long runway. They hold mostly shares, which means higher expected long-run returns and deeper falls along the way. This guide explains what growth funds hold, what they cost, how bumpy the ride can be, and how to compare them without simply picking last year's top performer.
Last checked October 2026
What a growth fund holds
Growth funds typically hold around 70-90% growth assets — New Zealand and international shares and listed property — with the rest in bonds and cash. Aggressive (or 'high growth') funds go further, often 90-100% shares.
The exact split and the mix of NZ versus global shares varies by provider, so check the target asset allocation in each fund's quarterly fund update.
Returns and the ride
Over long periods, well-run growth funds have historically returned roughly 7-9% a year after fees and tax. But that average hides real volatility: falls of 15-25% or more have happened in sharp downturns, such as early 2020, and recovering can take months or years.
Past returns are not a guarantee. The practical question is not 'which fund returned most last year' but 'could I stay invested through a large fall without switching out?'
What they cost
Index-tracked growth funds commonly charge under about 0.5% a year; actively managed ones often charge roughly 0.8% to 1.5%. On a growing balance over decades, a 0.5% fee gap can add up to tens of thousands of dollars.
Who a growth fund suits
- Members with at least 10 years before they expect to withdraw — often younger savers aiming for retirement.
- People who can watch their balance fall without switching to a safer fund at the bottom.
- Members whose first-home purchase is still many years away.
Who it may not suit
Money needed within about five years — for a house deposit or retirement drawdown — is exposed to a downturn arriving at the wrong moment. Many members step down to balanced or conservative as that date approaches.
Balanced KiwiSaver funds in depthConservative KiwiSaver funds in depth
How to compare growth funds (and the 'best' trap)
Searching for the 'best growth KiwiSaver fund' usually turns up last year's winner. Top performers often change from year to year, especially between funds weighted to NZ shares versus global or technology-heavy shares.
A fairer comparison: similar growth/income split, total annual fee, five and ten-year returns after fees and tax, and the 1-7 risk indicator. Then decide whether higher fees are justified by anything you can verify.
Compare growth funds in the directoryCheck your current fund against alternativesAll five fund types explained