What is a Conservative KiwiSaver scheme fund?

Conservative KiwiSaver scheme funds invest about 10–35% in growth assets (shares and property) and 65–90% in income assets (bonds and cash). They prioritise capital preservation and steady returns over long-term growth. Typically suited to first-home buyers within 1–3 years of purchase, members within 5 years of age 65, or anyone who values low volatility over higher long-term return.

Who is a Conservative KiwiSaver scheme fund suited to?

First-home buyers needing the money within 1–3 years, members within 5 years of retirement, and savers who prioritise stability over growth. If you have 10+ years until you need the money, a Balanced or Growth fund typically delivers higher long-term returns after fees and tax — at the cost of more short-term volatility.

What 5-year returns do Conservative funds show?

In our FMA-Disclose-sourced database the average 5-year annualised return across Conservative KiwiSaver scheme funds sits around 2.5%, with average annual fees of 0.74%. Returns are lower than Balanced or Growth funds but with smaller drawdowns. Past performance is not a reliable indicator of future returns.

Are Conservative KiwiSaver scheme funds 'safe'?

Conservative is the lowest-volatility category among the standard KiwiSaver scheme fund types — it is not risk-free. Bond prices fall when interest rates rise (as in 2022), so even Conservative funds can post negative annual returns. The trade-off is you accept lower long-term return in exchange for smaller peak-to-trough drawdowns.

Do people use Conservative funds for a first-home deposit?

Where a purchase is within 1–3 years, many investors shift to Conservative or Defensive to reduce exposure to a near-term market fall. Where a purchase is 5+ years away, Balanced or Growth funds have historically had higher expected returns in exchange for more volatility. The choice depends on time horizon and tolerance for the deposit moving 5–10% in either direction in a given year — a licensed financial adviser can advise on a specific situation.

When do investors typically switch from Growth to Conservative?

A common pattern is to glide down through fund types as the savings horizon shortens — for example, Growth or Aggressive in your 20s–40s, Balanced in your 50s, Conservative or Defensive in the few years approaching retirement. A switch within the same provider is usually instant; a switch to a different provider takes 10–15 business days. Both are free of exit fees.

FundCompare

Conservative KiwiSaver Scheme Funds Comparison

Compare all 33 Conservative KiwiSaver scheme funds — 5-year returns, fees, and asset mix. Sourced from FMA Disclose, refreshed quarterly.

Last updated: 2026-06-30

Total Conservative Funds

Low-risk options

Average Return

2.47%

5-year average

Average Fees

0.74%

Annual fees

Strongest 5-yr return

3.80%

Milford Kiwisaver Mo...

What are Conservative KiwiSaver Scheme Funds?

Conservative funds invest 0-30% in growth assets (shares/property), with 70-100% in income assets (bonds and cash). They prioritize capital preservation and steady returns over high growth.

✅ Suited to:

• First home buyers (need money in 1-3 years)
• Near-retirees (within 5 years of age 65)
• Risk-averse investors
• Short-term savings goals

⚠️ Consider Instead If:

• You have 10+ years until retirement → Balanced funds
• You want higher long-term returns → Growth funds
• You're comfortable with volatility → Growth funds

All Conservative Funds Ranked by Performance

Rank	Fund Name	Provider	5-Year Return	Fees	Risk	Members
#1	Milford Kiwisaver Moderate Fund	Milford	3.80%	0.95%	3/7	7k
#2	Conservative Portfolio	Maritime	3.53%	0.61%	4/7	0k
#3	Quaystreet Conservative Fund	Smartshares	3.53%	0.86%	3/7	0k
#4	Default Conservative Fund	Fisher	3.34%	0.51%	3/7	73k
#5	Socially Responsible Moderate Fund	Booster	2.81%	1.21%	4/7	3k
#6	Milford Kiwisaver Conservative Fund	Milford	2.76%	0.85%	3/7	9k
#7	Automatic Fund (Age 80)	SuperEasy	2.73%	0.51%	3/7	0k
#8	Conservative Fund	Westpac	2.72%	0.40%	3/7	140k
#9	Pathfinder Kiwisaver Conservative Fund	Pathfinder	2.71%	1.01%	3/7	1k
#10	Capital Guaranteed Fund	Booster	2.63%	1.03%	2/7	8k
#11	BNZ Kiwisaver First Home Buyer Fund	BNZ	2.62%	0.45%	3/7	19k
#12	Defensive Conservative Fund	Westpac	2.57%	0.40%	3/7	13k
#13	Superlife Conservative Fund	Smartshares	2.54%	0.67%	4/7	1k
#14	Goalsgetter Amova Conservative Fund	Nikko	2.52%	1.05%	3/7	0k
#15	Lifestages Auto Option Age 65+	SBS	2.52%	0.96%	3/7	0k
#16	BNZ Kiwisaver Conservative Fund	BNZ	2.49%	0.45%	3/7	32k
#17	Conservative Fund	Fisher	2.49%	0.90%	4/7	53k
#18	Summer Conservative Selection	Summer	2.47%	0.75%	3/7	0k
#19	Conservative Fund	MAS	2.44%	0.85%	3/7	2k
#20	Responsible Conservative Fund	Mercer	2.35%	0.49%	3/7	21k
#21	Conservative Fund	ASB	2.33%	0.40%	3/7	130k
#22	AMP Conservative Fund	AMP	2.28%	0.84%	3/7	11k
#23	AMP Conservative Fund (Lifesteps)	AMP	2.28%	0.84%	3/7	5k
#24	Conservative Fund	SuperEasy	2.27%	0.32%	3/7	0k
#25	Moderate Fund	Booster	2.23%	1.08%	3/7	0k
#26	Pie Kiwisaver Conservative Fund	Pie	2.16%	0.69%	3/7	1k
#27	Conservative Fund	Simplicity	2.12%	0.24%	3/7	3k
#28	Conservative Fund	Mercer	2.03%	0.69%	3/7	1k
#29	Conservative Fund	ANZ	2.01%	0.60%	3/7	41k
#30	Conservative Fund	ANZ	2.01%	0.60%	3/7	14k
#31	Global Select Conservative Fund	AMP	1.91%	1.08%	3/7	1k
#32	Investnow Mint Diversified Income Fund	Fundrock	1.45%	1.01%	4/7	1k
#33	Asset Class Conservative Fund	Booster	0.93%	1.11%	4/7	1k

Compare Other Fund Types

Balanced Funds

Mix of growth and income assets, moderate risk

View Balanced Funds →

Growth Funds

Higher risk, higher potential returns for long-term

View Growth Funds →

First Home Withdrawal

Learn how to withdraw KiwiSaver for your first home

Learn More →

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Data source: FMA KiwiSaver Quarterly Reports, provider Product Disclosure Statements. Last updated: May 2026.

Disclaimer: Past performance does not guarantee future results. This is not financial advice. Consult a licensed financial adviser before making investment decisions.

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Important Information

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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Compare every fund on the FMA Disclose register. Refreshed quarterly. Independent — FundCompare is not a Financial Advice Provider; general information only.

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