Ok, but should I change funds?
You can change how your fund is managed at any time. Generally speaking, seeing your account balance go down isn’t a good reason to change funds as all investments go up and down, which is normal and expected.
There some occasions when changing funds could be a good idea. Think about changing if…
You want to make your money work harder – by moving your savings to a growth fund, you’ll generally earn the most possible money in the long term. So, if you don’t need your money for at least 10 years, but it’s invested in a conservative fund, you’re probably short-changing yourself.
If your life situation has changed – different funds suit different people at different times of their lives. If you’re nearing retirement or getting ready to buy your first home, you’ll need your savings fairly soon. Swapping to a conservative fund with fewer ups and downs means you’ll keep your balance steady. You won’t get those big earnings, but you’ll also reduce the chance of having one of those unavoidable dips just when you’re about to withdraw your savings!
You’ve never actually chosen a fund – if you don’t remember choosing a fund when you opened your KiwiSaver account, you’re probably in a default fund – essentially a holding pen for your savings until you decide what to do with them. If that’s the case, now’s the time to check what fund will help you to meet your goals!