KiwiSaver Balanced Fund
The KiwiSaver balanced fund is the “middle of the road” when it comes to KiwiSaver funds. It has an equal split between high growth assets like shares or property and stable assets like fixed interest investments and bank deposits.
This way you get a fund with an opportunity for growth but without the risks of the aggressive or growth funds. Take a look at the balanced funds offered by ASB and ANZ and others here on Glimp with our KiwiSaver comparison.
What is a Balanced Fund?
The balanced fund was created for those who are happy with a small amount of risk and want decent returns to set them up in the future. The fund is evenly split between the safer investments of bank deposits and fixed interest assets, and the more risky growth assets like property and shares.
This fund is therefore a medium risk fund; there’s always a chance that losses made by the growth assets outweigh the gains from the conservative assets. However, the risk of making a loss is far smaller than it is for the high risk aggressive fund.
Why choose a KiwiSaver Balanced Fund?
A balanced KiwiSaver fund offers the best of both worlds. You’ll have the long term security offered by the cash investments (bank deposits and fixed interest investments) as well as the opportunity for growth from property and shares. It’s a safe choice if you’ve already got a large amount in the fund but still want it to continue growing.
Looking for the best balanced fund? Check out the schemes offered by different KiwiSaver providers using our comparison tool to know which is best for you.
How much risk do you take with a Balanced Fund?
As a medium risk fund, a balanced fund is made up of low risk assets and high risk assets. Like all other KiwiSaver funds, you’ll still get the employer contributions and government contributions, but on top of that you could be making a serious amount of compound interest too. If you’re about to cash out your KiwiSaver for retirement or for a first home, you may want to consider a lower risk fund.