NZ Funds KiwiSaver Scheme Review
Published 14 October 2026 · Written by the ValueHub team · Reviewed by Steve Baron
NZ Funds KiwiSaver Scheme Review
NZ Funds runs 7 KiwiSaver funds open to new members, covering a moderate spread of risk levels. At 30 June 2026 they held $2.05 billion for 87,194 investors.
Charges across the open funds run from 1.12 per cent to 2.01 per cent.
Over five years the Balanced Fund returned 5.78 per cent a year while the Inflation Strategy returned -2.29 per cent a year, which is the gap between the top and the bottom of what you can choose from.
This review does three things. It sets out what the scheme actually contains. It puts every fund’s fee, risk indicator and return in one place, taken from the Government’s register. And it answers the question that matters most — whether what you get is worth what you pay.
How We Researched This Guide
Every number below is read from our own copy of the Government’s Disclose Register, which is the statutory source managers file against. It carries seven open funds, all reported as at 30 June 2026.
We also checked the rules that underpin every KiwiSaver account — contribution rates, the government contribution, and default provider appointments — against Inland Revenue and the Ministry of Business, Innovation and Employment.
This guide is not here to tell you to switch or to stay. What it does is put the verified numbers in one place so you can compare on facts rather than marketing.
ValueHub's Trusted Providers
We've researched the providers below — here are our picks for this category.
Simplicity is a nonprofit KiwiSaver and investment fund manager charging 0.25% p.a. across all six KiwiSaver funds. 100% owned by the Simplicity Foundation, a registered charity. Over 190,000 members. Seven rounds of fee cuts since launch in 2016. Fifteen percent of management fees donated to NZ charities. Founded by Sam Stubbs (ex-Tower Investments CEO, Goldman Sachs).
The Quick Summary (60-Second Version)
Here is the short version before the details.
- NZ Funds offers seven open funds across a single scheme.
- Annual fund charges range from 1.12 per cent to 2.01 per cent.
- The cheapest option is the Income Strategy at 1.12 per cent.
- The largest fund by value is the Growth Strategy, with $955.3 million invested.
- The strongest five-year record in the range belongs to the Balanced Fund, at 5.78 per cent a year.
- The weakest five-year record is the Inflation Strategy, at -2.29 per cent a year.
- The funds hold $2.05 billion between them for 87,194 investors.
What You Pay, and What You Get For It
NZ Funds charges an annual fund charge, and there are no separate membership, contribution, establishment, switching or termination fees recorded for its KiwiSaver scheme. The charge comes out of the fund’s returns rather than being billed to you, which is why most members never see it leave the account.
| Scheme | Funds | Charge range | Status |
|---|---|---|---|
| NZ Funds KiwiSaver Scheme | 7 | 1.12% to 2.01% | Open |
Put into dollars, the spread is easier to judge. On a $50,000 balance, the lowest charge here, 1.12 per cent, is about $560 a year, and the highest, 2.01 per cent, is about $1,005. On $100,000, those figures double.
What the Charge Costs at Different Balances
The figures below convert the percentages into annual dollars at three balances. The fee is the one part of the arrangement that does not depend on market performance.
| Fund | Charge | On $10,000 | On $50,000 | On $100,000 |
|---|---|---|---|---|
| Income Strategy | 1.12% | $112 | $560 | $1,120 |
| Life Cycle - Age 65 | 1.57% | $157 | $785 | $1,570 |
| Growth Strategy | 2.01% | $201 | $1,005 | $2,010 |
The real effect of a fee is not the one-year figure but what it removes from a balance that would otherwise have compounded for decades. Small percentage differences add up to large sums over forty years of contributions.
The Kinds of Fund in This Range
The register groups every fund by type, and the type tells you more about the risk than the name does. NZ Funds spans 4 of those groups, which determines how much choice you actually have.
| Type | Funds | Risk | Charge range | What it means |
|---|---|---|---|---|
| Defensive | 1 | 4 | 1.12% | Weighted to cash and bonds, so it is the steadiest option in a range. |
| Balanced | 1 | 4 | — | Splits income and growth assets roughly evenly, which is the middle of most ranges. |
| Growth | 2 | 5 | 1.50% to 1.57% | Holds mostly shares and property, so it swings more in the short term and is built for a longer horizon. |
| Aggressive | 3 | 5 to 6 | 1.42% to 2.01% | Holds almost entirely growth assets, which makes it the most volatile option in a range. |
The risk indicator runs from 1 to 7. It measures how much the fund’s value has moved in the past, not how good it is. A 6 or 7 is not a warning; it is a statement that the fund is expected to fall further in a bad year, and it belongs in a portfolio you will not need to touch for a long time.
NZ Funds KiwiSaver Scheme — the funds
| Fund | Type | Risk | Fee | 1yr | 5yr | Fund size |
|---|---|---|---|---|---|---|
| Income Strategy | Defensive | 4 | 1.12% | 1.70% | 0.90% | $157m |
| Balanced Fund | Balanced | 4 | 0.00% | 5.78% | 5.78% | $17m |
| Life Cycle - Age 75 | Growth | 5 | 1.50% | 6.19% | -0.56% | $2m |
| Life Cycle - Age 65 | Growth | 5 | 1.57% | 6.83% | -0.69% | $16m |
| Inflation Strategy | Aggressive | 5 | 1.42% | 7.58% | -2.29% | $226m |
| Life Cycle - Age 0-54 | Aggressive | 6 | 1.91% | 8.89% | -0.83% | $677m |
| Growth Strategy | Aggressive | 6 | 2.01% | 9.38% | -0.85% | $955m |
Charges across the open funds run from 1.12 per cent to 2.01 per cent. The strongest five-year figure is the Balanced Fund at 5.78 per cent a year, and the weakest is the Inflation Strategy at -2.29 per cent a year.
What the Funds Actually Hold
The register also discloses each fund’s split between growth assets, such as shares and property, and income assets, such as bonds and cash. More than the fund’s name, that ratio tells you how it will behave when markets move.
| Fund | Growth assets | Income assets | Risk |
|---|---|---|---|
| Income Strategy | 0% | 100% | 4 |
| Balanced Fund | 50% | 50% | 4 |
| Life Cycle - Age 75 | 68% | 32% | 5 |
| Life Cycle - Age 65 | 76% | 24% | 5 |
| Inflation Strategy | 97% | 3% | 5 |
| Life Cycle - Age 0-54 | 96% | 4% | 6 |
| Growth Strategy | 100% | 0% | 6 |
The spread runs from 0% growth assets in the Income Strategy to 100% in the Growth Strategy. The conservative end will scarcely move in a poor year; the aggressive end will fall sharply with share markets and rebound just as sharply. Which suits you depends on when you need the money, not on which has performed better lately.
Reading the Returns
The figures are net of fees and after tax. Every return shown is net of the fund charge and after tax. The strongest five-year average here is the Balanced Fund at 5.78 per cent a year, against a range of -2.29 to 5.78 per cent across the open funds.
Compare the columns side by side. One-year figures across these funds span 1.70 to 9.38 per cent, and five-year averages -2.29 to 5.78 per cent. The gap between the two is a reminder that twelve favourable months are not evidence of skill, whereas a five-year record is far harder to produce by accident.
Where a fund has only a short record, none of this can help you, and that is a real limitation rather than a technicality. The longer the published record, the more of it is evidence rather than circumstance.
The table that follows gives each open fund’s full published record. Where a fund is new, the longer columns are blank, and that absence is itself information.
| Fund | 1 year | 3 years | 5 years | 10 years | Since inception |
|---|---|---|---|---|---|
| Income Strategy | 1.70% | 2.36% | 0.90% | 2.36% | 2.35% |
| Balanced Fund | 5.78% | 5.00% | 5.78% | — | 2.94% |
| Life Cycle - Age 75 | 6.19% | 5.18% | -0.56% | 4.46% | 4.82% |
| Life Cycle - Age 65 | 6.83% | 5.80% | -0.69% | 4.84% | 5.28% |
| Inflation Strategy | 7.58% | 3.42% | -2.29% | 3.64% | 3.91% |
| Life Cycle - Age 0-54 | 8.89% | 9.02% | -0.83% | 6.68% | 7.47% |
| Growth Strategy | 9.38% | 10.03% | -0.85% | 7.22% | 8.13% |
Where NZ Funds Sits Against the Alternatives
On entry cost, NZ Funds is the 27th cheapest of the 29 managers in our KiwiSaver table, with its cheapest fund charging 1.12 per cent. The cheapest manager charges 0.03 per cent and the dearest starts at 4.26 per cent.
| Manager | Charge range | Open funds |
|---|---|---|
| InvestNow | 0.03% to 1.38% | 45 |
| Sharesies | 0.09% to 1.49% | 11 |
| SuperLife | 0.20% to 1.26% | 50 |
| Milford | 0.20% to 1.15% | 6 |
| Kernel | 0.25% to 0.45% | 25 |
| Simplicity | 0.24% | 6 |
Cost is only one side of the ledger. The other is whether the return justifies it, which is what the five-year column is for. Neither number is predictive on its own, and a stretch that suits shares will always make the share-heavy funds look better than they are.
What You Put In, and What You Get Back
Contribution settings come from legislation rather than the provider, so they are identical across all schemes. The difference lies in what the manager does with the money afterwards, and that is where the fee begins to matter.
The default employee and employer rate is 3.5 per cent from 1 April 2026, and it rises to 4 per cent on 1 April 2028. On a $70,000 salary, 3.5 per cent is $2,450 a year from you, matched by your employer, so about $4,900 a year goes into the account before any return.
The Government adds 25 cents for every dollar you contribute, up to a maximum of $260.72 a year. To receive the full amount, you must contribute at least $1,042.86 of your own money between 1 July and 30 June, and employer contributions do not count towards that threshold. If your taxable income is above $180,000 a year, you do not qualify.
Once the money is in, the fund charge applies to the whole balance rather than to each contribution. On a $50,000 balance, the lowest charge here, 1.12 per cent, is about $560 a year, and the highest, 2.01 per cent, is about $1,005. On $100,000, those figures double. That is the number worth weighing against the returns, because it is charged whether the fund rises or falls.
Questions You Might Have
Which fund am I in?
Your KiwiSaver statement, or the online account you use to manage your savings, will show which fund your money is invested in and how it is split if you hold more than one. Check it before anything else, because the fund decides both the return and the charge.
How much will I pay?
Charges across the open funds run from 1.12 per cent to 2.01 per cent. It comes out of the fund’s returns, not your bank account, so you will not see a separate bill.
Is NZ Funds a default provider?
No. The appointed default providers are BNZ, Booster, Westpac (through BT Funds Management), Fisher Funds, Simplicity and Smartshares, with appointments running to December 2028. NZ Funds is a scheme you choose deliberately.
Can I change funds without changing provider?
Usually yes. Most schemes let you move between their own funds, or set a different split, through your online account at no cost, and the change takes effect without affecting your membership or your employer contributions. You only need to switch provider if the scheme itself is the problem.
What happens to a closed fund?
If you already hold a fund that has closed to new members, you keep it and continue to pay the charge shown. Closing a fund stops new money coming in; it does not force existing members out, and it does not change your balance.
How much do I need to contribute to get the full government contribution?
You need to put in at least $1,042.86 of your own money between 1 July and 30 June to receive the maximum of $260.72. The government adds 25 cents for every dollar you contribute, and employer contributions do not count towards your $1,042.86. If your taxable income is above $180,000 a year, you do not qualify.
How much will I pay at the default contribution rate?
The default employee and employer rate rose from 3 per cent to 3.5 per cent on 1 April 2026, and it rises again to 4 per cent on 1 April 2028. On a $70,000 salary, 3.5 per cent is $2,450 a year from you, matched by your employer. You can choose 4, 6, 8 or 10 per cent instead.
Does switching to or from NZ Funds cost anything?
No. NZ Funds records no membership, contribution, establishment, switching or termination fees, and switching between KiwiSaver providers does not attract a fee in practice. You apply to the new provider, who arranges the transfer.
What Matters Most
NZ Funds is a manager with a moderate range of funds. The fee table above shows the current charge for each fund. The funds are few and easy to hold in your head.
- The Income Strategy is the cheapest way in at 1.12 per cent.
- The strongest five-year record is the Balanced Fund at 5.78 per cent a year, and it carries the risk that produced it.
- Check which fund you are in before anything else, because it decides both the return and the charge.
The ValueHub Team built this site because finding clear, unbiased financial information in New Zealand was harder than it should be. Every guide is based on real research — we compare the actual fees, terms, and fine print so you don't have to. Our tip: shop around every year, read the policy docs, and never assume loyalty gets you the best deal.— The ValueHub Team
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