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 we’re 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 provider structures funds slightly differently, most options fall into three 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
• Medium to long-term focus

A Balanced Fund invests across both income assets and shares, aiming to provide growth 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.

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 Balanced or Growth Fund may give your money more opportunity to grow 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 growth.

Smart strategies for specific goals

In addition to our core fund options, the Aurora KiwiSaver Scheme also offers strategies designed around common life goals.

First Home Buyers 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.

RetirementPlus Strategy

If you’re focused on long-term retirement outcomes, the RetirementPlus Strategy is designed with that extended horizon in mind.
It aims to grow 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 an 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 Aurora 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 Aurora Client Care Team

0800 242 023
hello@aurora.co.nz