Your KiwiSaver fund shouldn't be a "set and forget" decision.
As your goals evolve, your timeframe changes, or your plans shift, it's worth checking that your current fund still fits where you're heading.
One of the most common — and most important — questions Hive's Advisers are asked is: "What fund should I be in?"
There's no single right answer. The best fund for you depends on your goals, your timeframe, and how comfortable you are with investment ups and downs along the way. Taking the time to review your settings — even once a year — can make a meaningful difference to your long-term outcome.
The 3 things that matter most
Choosing the right fund comes down to three key factors:
- Your timeframe — when do you plan to use the money?
- Your goal — are you saving for your first home, or building for retirement?
- Your comfort with risk — how comfortable are you with your balance moving up and down over time?
Generally, funds with higher growth potential also experience more short-term ups and downs. That's normal — but it does mean they're usually better suited to longer timeframes.
Understanding the different fund types
While every fund manager structures funds slightly differently, most options fall into a few broad categories:
Conservative Fund
- Lower level of risk
- Smaller ups and downs
- Lower long-term growth potential
A Conservative Fund invests mainly in income assets such as bonds and cash, with a smaller allocation to shares. It may suit investors who plan to use their savings in the next few years — for example, for a first home purchase or as they approach retirement.
Balanced Fund
- Moderate level of risk
- A mix of stability and growth potential
- Medium to long-term focus
A Balanced Fund invests across both income assets and shares, aiming to provide returns over time while helping manage market volatility. It may suit investors with several years before they plan to use their savings.
Growth Fund
- Higher level of risk
- More noticeable short-term ups and downs
- Higher long-term growth potential
A Growth Fund invests predominantly in shares and other growth assets. While values can fluctuate in the short term, it may suit investors with a long timeframe — such as those saving for retirement more than 10 years away.
Aggressive Fund
- Highest level of risk
- Larger and more frequent short-term ups and downs
- Highest long-term growth potential
An Aggressive Fund invests almost entirely in shares and other growth assets, with little to no allocation to income assets. It may suit investors with a long timeframe and a high tolerance for market movements — those who are comfortable riding out significant volatility along the way, in pursuit of the highest long-term growth potential on offer.
Matching your fund to your life stage
Here's how this might look in practice:
Buying your first home in a few years?
If you're 30 and planning to buy your first home in three years, a Conservative Fund could be appropriate. Lower-risk funds aim to reduce the chance of a sudden drop in value right when you need to withdraw your savings.
Saving for retirement decades away?
If you're 40 and retirement is still 25 years away, a Growth or Aggressive Fund may give your money more opportunity to build over time — even if there are some market fluctuations along the way.
The key is alignment. Being in a fund that doesn't match your timeframe or goals can either expose you to unnecessary risk — or limit your long-term potential.
Smart strategies for specific goals
In addition to the core fund options, the Hive KiwiSaver Scheme also offers two strategies designed around the two key KiwiSaver goals:
Aurora First Home Buyer Strategy
If your priority is purchasing your first home, this strategy is structured to reflect that shorter timeframe. It focuses on helping manage risk as your intended purchase date approaches — aiming to reduce the chance of sharp movements in your balance when you're getting ready to withdraw your savings.
Aurora RetirementPlus Strategy
If you're focused on long-term retirement outcomes, the Aurora RetirementPlus Strategy is designed with that extended horizon in mind. It aims to build your savings over time while adjusting the level of risk as you move closer to retirement — helping balance growth potential with increasing stability in later years.
When should you think about changing funds?
Changing funds isn't something you need to do often. And it's usually not a good idea to switch simply because markets have fallen.
One of the most common mistakes investors make is moving to a lower-risk option during a downturn. While it can feel safer in the moment, it often means locking in losses and missing out on the recovery.
Instead, consider changing funds when your circumstances change. For example:
- You're in a Growth Fund but planning to buy a home in two years — it may be time to reduce risk.
- You've purchased your first home and your next focus is retirement — increasing your exposure to growth assets could make sense.
- Your plans have shifted and your goal is further away than expected — that could change which fund is right for you.
Fund decisions should be based on your goals and timeframe — not short-term headlines.
A simple check-in can make a big difference
If you're unsure whether your current fund still fits your situation, it may be time for a review. A short conversation with your Adviser can help you:
- Confirm you're in the right fund for your goals
- Check your contribution rate
- Make sure you're receiving the full government contribution
- Feel more confident during market ups and downs
Small adjustments made at the right time can have a meaningful impact over the years ahead.
If you're a member of the Hive KiwiSaver Scheme and haven't reviewed your settings recently, now could be a good time to check in. Because when your KiwiSaver account is set up to suit your life, it works harder for you — helping you move steadily toward your goals.
Want to talk things through?
Talk to your Adviser today or get in touch with the Hive Client Care Team on 0800 242 023 or hello@hive.co.nz.
