FundCompareKiwiSaver scheme comparison

What is Volatility?

Volatility is how much a KiwiSaver scheme fund's returns swing up and down over time — the basis for the FMA risk indicator.

Detailed Explanation

Measured as the standard deviation of returns, usually over the past five years. Higher volatility means larger short-term moves in either direction. Growth funds are more volatile than conservative funds; this is the cost of higher long-term expected return.

Example

A growth fund might have a one-year volatility of 12% — meaning returns of 8% ± 12% in any given year are normal.

Frequently Asked Questions

Can low-volatility funds still lose money?

Yes. Even a conservative fund can post a negative year, especially when bond yields rise quickly.

Related Terms

Risk IndicatorGrowth FundAggressive Fund
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