Five standard KiwiSaver scheme fund types — Defensive, Conservative, Balanced, Growth, and Aggressive — defined by the share of growth assets (shares, property) versus income assets (bonds, cash). Here's what each invests in, typical 5-year returns from FMA Disclose data, and which suits which time horizon.
Last updated: 6 May 2026
General Information Only: This page provides factual data for comparison purposes and does not constitute financial advice. Individual circumstances vary.Read our disclosure
| Category | Growth assets | Risk indicator | Funds | Avg 5Y return | Avg fee |
|---|---|---|---|---|---|
| Defensive | 0–9.9% | 1–2 | 50 | 1.13% | 0.57% |
| Conservative | 10–34.9% | 2–3 | 46 | 1.82% | 0.82% |
| Balanced | 35–62.9% | 3–4 | 77 | 3.62% | 0.92% |
| Growth | 63–89.9% | 4–5 | 68 | 4.21% | 1.07% |
| Aggressive | 90–100% | 5–7 | 129 | 4.97% | 0.89% |
Asset-mix ranges follow FMA convention. Returns and fees calculated as unweighted averages across all funds in each category in our FMA-Disclose-sourced database. Past performance is not a reliable indicator of future returns.
Defensive funds aim to preserve capital. Almost everything is in cash, term deposits, and high-grade fixed interest. Returns are stable but very modest, and rarely beat inflation by much.
Suited to
Capital preservation; investors very near or in retirement; very short time horizons (1–3 years).
Consider an alternative if
You have 10+ years to retirement — inflation will erode your real return.
Conservative funds hold mostly bonds and cash, with a small share allocation. They smooth out volatility but cap long-term upside.
Suited to
Investors within 3–7 years of needing the money (first home in 3 years, or close to retirement). Tolerates only minor drawdowns.
Consider an alternative if
You have a 15+ year horizon — too much income drag will cost you tens of thousands in compounded growth.
Balanced funds split roughly evenly between growth (shares, property) and income (bonds, cash) assets. The most common 'middle of the road' choice.
Suited to
Mid-horizon investors (7–15 years) and the default risk profile of many bank-issued KiwiSaver schemes.
Consider an alternative if
You have 25+ years to retirement and can stomach drawdowns — you'll out-earn balanced funds with Growth or Aggressive.
Growth funds put 60–90% into shares and property. Long-term returns are higher but drawdowns of 20–30% in a bad year are normal.
Suited to
Long-horizon investors (15+ years), comfortable with 1-in-5-years feeling like 'this is bad'. Most NZers under 50 sit here.
Consider an alternative if
You'll need the money inside 7 years, or you actually sell during a 30%+ drawdown rather than ride it out.
Aggressive funds are essentially all shares. Highest expected long-term return — and the largest peak-to-trough drawdowns.
Suited to
Very long-horizon investors (20+ years). Younger members who can ride out a full market cycle.
Consider an alternative if
You're within 10 years of withdrawing, or a 40% paper drawdown would cause you to switch funds at the bottom.
Some providers offer a "Moderate" fund. It is not a separate FMA category — it usually maps to the lower end of Balanced (around 35–45% growth assets), or the upper end of Conservative.
See how Moderate funds compare →Five standard categories under FMA convention: Defensive, Conservative, Balanced, Growth, and Aggressive. They are differentiated by the proportion of growth assets (shares, property) versus income assets (bonds, cash). Some providers also offer 'Moderate' — a label that usually maps to Balanced but with a slightly lower share allocation.
The two questions that matter: (1) when will you need the money, and (2) how would you behave during a 30% drawdown. If your time horizon is 15+ years and you'd hold through a drawdown, Growth or Aggressive. If 7–15 years, Balanced. If you need the money inside 5 years, Conservative or Defensive. The KiwiSaver risk indicator (1–7) on each fund's PDS is a quick proxy.
Growth funds typically invest 63–89% in growth assets; Aggressive funds invest 90–100%. Aggressive carries higher expected long-term return but with larger peak-to-trough drawdowns. The 5-year return gap between the two categories is usually 0.5–1.5% per year on average — meaningful over 30 years, but not the order-of-magnitude difference between Growth and Conservative.
Balanced is moderate, not safe. It still holds 35–62% in shares and property, so a 15–20% drawdown in a bad year is realistic. 'Safe' (in the limited sense of low volatility) is Defensive or Conservative — but those drag long-term returns and rarely keep up with inflation after fees and tax.
Categories are standardised in label only. Asset-mix ranges per category vary slightly between providers — for example one Balanced fund might sit at 50% growth and another at 60%. Always check the specific fund's PDS or Quarterly Fund Update (QFU) for the exact allocation, not the category label.
Most providers let you split your balance across multiple funds within their scheme — e.g. 70% Growth and 30% Balanced. This is sometimes called a 'multi-fund' or 'mixed' option. You cannot split across different schemes; you can only be a member of one KiwiSaver scheme at a time.
An annual check is sensible. The two life events that usually trigger a switch are: (1) your time horizon shortens significantly (within 5 years of retirement, or within 3 years of a first-home withdrawal), or (2) your tolerance for drawdown changes. Outside those moments, frequent fund-type switching tends to lock in losses rather than improve outcomes.
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Disclaimer: This page provides general information only and does not constitute financial advice under the Financial Markets Conduct Act 2013. FundCompare.co.nz is not a licensed Financial Advice Provider (FAP).
We do not assess suitability, make recommendations, or provide personalised advice. The information shown is sourced from publicly available data and may not reflect current offerings. Past performance is not a reliable indicator of future returns. Investment returns can be negative, and you may receive back less than you invested.
Before making any decisions: Always verify current information directly with the relevant KiwiSaver provider and read their Product Disclosure Statement (PDS).
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