FundCompareKiwiSaver scheme comparison

What is Diversification?

Diversification is spreading investments across many companies, sectors, countries, and asset classes to reduce the impact of any single loss.

Detailed Explanation

A KiwiSaver scheme fund holding 1,000 global shares is more diversified than one holding 20 NZ shares. Diversification reduces the chance that one company or one country wipes out a meaningful share of returns. It is the most-cited free improvement in investment outcomes.

Example

A global growth fund might hold US tech, European industrials, Japanese consumer goods, and emerging-market financials — exposure to one country crashing has a smaller impact than a NZ-only equivalent.

Frequently Asked Questions

Can I be over-diversified?

Possible in theory; in practice most KiwiSaver scheme funds are diversified about right by design.

Related Terms

Asset AllocationCurrency HedgingIndex Fund (Passive Fund)
← Back to Glossary
FundCompareKiwiSaver scheme comparison

Independent KiwiSaver information for New Zealanders. Compare fund data, view fees, and explore provider options. General information only — not financial advice.

Important Information and Disclosure

The information provided on this website is not a recommendation to buy, sell, or hold any financial products. Nothing on this website constitutes financial advice for the purposes of the Financial Markets Conduct Act 2013. FundCompare.co.nz is not a licensed Financial Advice Provider.

Investing involves risk. The value of your KiwiSaver investment can go down as well as up, and you may get back less than you put in. Past performance is not a reliable indicator of future returns.

Before making any investment decision, you should read the Product Disclosure Statement (PDS) for the fund carefully. If you have questions or are unclear about the implications of your investment decision, you should seek advice from a licensed Financial Advice Provider.

All information displayed is sourced from KiwiSaver providers, the Disclose Register, or publicly available sources. We take reasonable steps to ensure accuracy but cannot guarantee information is always current or complete.

FundCompare.co.nz may receive referral fees or commissions from KiwiSaver providers if you sign up via links on this website. These payments do not influence the order, ranking, or inclusion of products displayed.

For more information, please see our Terms of Service, Privacy Policy, and Disclosure Statement.

KiwiSaver® is a registered trademark of Inland Revenue. FundCompare.co.nz is not affiliated with, endorsed by, or connected to Inland Revenue, the New Zealand Government, or any KiwiSaver scheme provider.

© 2026 FundCompare.co.nz. All rights reserved.