Change my fund

19 February 2020

Why should I change funds?

Getting your money invested in the right fund could make a significant difference to how much you have when you retire . It could be the next step to you take to achieve that ideal savings goal you’ve always had in mind. In short, making sure you are in the right fund  is a great way to get ahead financially!
We have a range of fund options and expertise to help maximise your returns over the long term. Make the change today.

When to change how your retirement savings are invested

If you have a KiwiSaver or New Zealand Retirement Trust (NZRT) account, then good news: you’re an investor. The money you put in is being put to work – and can earn you more money through market movements, dividends and interest  which help your balance to multiply in the long run.
But what are you investing in, exactly? That all comes down to what fund you’re in. Each fund has a different focus and is designed to suit people with different goals and risk appetite. This is achieved by investing different amounts in things, like bonds, cash, shares and property compared to another fund.

The fundamentals of funds

You get to choose how your money is invested. The ‘how’ is all about which fund/s you put your money in. Here are the three most common fund types – there are more, and you can choose to split your savings across two or more funds, as well.

Conservative fund
A conservative fund is best suited to people who will need their retirement savings within 1-2 years. Because it invests mainly in things that are fairly stable – like cash or bonds  – your money tends to increase slower, but in return there may only be smaller ups and downs in your balance along the way.

Balanced fund
A balanced fund is sort of an in-between option. It’s a great option if you’ll need your savings in 6 to 10 years.  You will generally see greater  increases in your savings over the longer term, but there may also be larger ups and downs along the way. Around half  of your money will be in those more stable investments like cash and bonds, and the other half will be in higher growth but more variable investments like shares and property.

Growth fund
A growth fund is generally best suited to people who won’t need to touch their savings for a while – more than 10 years. Your money will generally increase faster over the longer term – but there may be bigger ups and downs along the way. If you have your money in a growth fund, you’re investing mainly in things like shares and property.

To change your fund, click the button below.

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!

Super charge your retirement savings

Both KiwiSaver and NZRT are a great way to save – money goes in from your pay without you even seeing it, and expert finance people make it work for you. Thinking about when you plan on using your savings and  how you feel about seeing your balance go up and down (how much stress you can cope with) will help you choose what fund is best for your money. Whichever you choose, you’re an investor!

Review your fund today.