KiwiSaver Considerations for Low-Fee Investors
Fees directly reduce your returns, and even small differences compound significantly over decades. Some investors prioritise minimising fees, often choosing passive index funds that track market indices rather than actively managed funds.
Last reviewed: July 2026
General Information Only: This page provides factual data for comparison purposes and does not constitute financial advice. Individual circumstances vary.Read our disclosure
Key Considerations for Low Fee Seekers
- •Illustrative — fees compound; sub-1-percentage-point differences can shift the final balance materially over 30+ years
- •Lowest fees typically from passive/index fund providers within KiwiSaver schemes
- •Compare current Total Annual Fund Charge on FundCompare's /funds/fees-under-0.5 page
- •Active funds charge higher fees but may (or may not) outperform — past performance is not a guarantee of future results
- •Compare TAFC (management + administration + performance fees, all-in)
- •Academic research shows most active funds do not consistently beat index funds net of fees over long horizons
Fund Types Commonly Considered
Low Fee Seekers often consider funds with risk indicators of 3, 4, 5, 6 (on the 1-7 scale). Common fund types include: All types available at low cost.
Note: Fund type selection depends entirely on individual circumstances, goals, and risk tolerance. This is general information only.
Funds in Relevant Risk Categories
Example funds with risk indicators of 3, 4, 5, 6 - for information only
| Fund Name | 5Y Return | Fees | Risk |
|---|---|---|---|
| High Growth Fund anz-default | No 5-year average return figure held for this fund. | N/A | 5/7 |
| Cash Enhanced Fund fisher-two | No 5-year average return figure held for this fund. | N/A | 3/7 |
| Conservative Fund fisher-two | No 5-year average return figure held for this fund. | N/A | 3/7 |
| Balanced Fund fisher-two | No 5-year average return figure held for this fund. | N/A | 4/7 |
| Growth Fund fisher-two | No 5-year average return figure held for this fund. | N/A | 4/7 |
| Growth Fund anz-default | No 5-year average return figure held for this fund. | N/A | 4/7 |
About “N/A” in return figures: it means no figure is held, not a return of zero. Of the 6 funds listed, 0 have a 5-year average return. Figures are drawn from fund disclosures on the FMA Disclose register, chiefly quarterly fund updates. Each fund shows the most recent figure held; the latest quarter broadly covered across all funds is March 2026. A fund too new to report a period has no figure for it; other gaps are figures not yet captured from the updates ingested so far.
This is not a recommendation. Past performance is not a reliable indicator of future returns.
Frequently Asked Questions
Which KiwiSaver providers have the lowest fees?
Compare the live ranked list on FundCompare's /funds/fees-under-0.5 page, sourced from FMA Disclose. The lowest-fee providers are typically passive index-fund managers.
Do lower fees mean lower returns?
Not necessarily. Research shows that over long periods, low-fee index funds often outperform higher-fee active funds after fees are deducted.
What's the difference between active and passive funds?
Passive funds track a market index automatically. Active funds have managers who select investments trying to beat the market. Active funds charge higher fees for this active management.
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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).
Need personalised advice? Consult a licensed Financial Advice Provider. Find advisers at fma.govt.nz
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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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 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 scheme providers, the Disclose Register, and the Sorted Smart Investor universal feed (operated by Te Ara Ahunga Ora Retirement Commission), or other publicly available sources. We take reasonable steps to ensure accuracy but cannot guarantee information is always current or complete.
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