Should you invest in one KiwiSaver fund or split your money across funds?


Whether or not to invest in a single KiwiSaver fund or split your money across multiple funds in the same scheme is a question that gets asked a lot, and it’s one of the first things new investors learn – don’t put all your eggs in one basket, you must diversify. By investing across different asset types, you reduce the level of risk you’re taking. So, it might seem like a good idea to split your KiwiSaver money across more than one fund. But here’s the thing, most of the BNZ KiwiSaver Scheme funds are already made up of a mixture of asset classes (like shares, bonds and cash), and are spread widely across different industries and locations around the world. Put simply, they’re designed so you can achieve diversification by choosing a single fund.

BNZ KiwiSaver Scheme funds are designed with diversification in mind

All BNZ KiwiSaver Scheme funds (other than Cash, which only invests in a wide range of cash and cash equivalent assets) have a mix of growth assets (mainly shares) and income assets (mainly bonds). Funds with more growth assets will generally produce higher investment returns over time, but they’ll have more ups and downs along the way (higher risk). Funds that have more income assets will likely be more stable (lower risk) but will generally produce lower returns over long time frames. When picking a fund, you need to consider your investment timeframe and the mix of assets that best matches the level of risk you’re willing to take.

For example, if you’re a long way off needing to access your savings then a Growth Fund could be right for you. However, as this fund type is largely made up of growth assets, your savings balance could be more heavily impacted as the market moves up and down.  If this makes you feel a bit uneasy, or if you have a shorter investment timeframe, you might want to consider investing in a fund with a lower exposure to growth assets.

A diversified range of funds

Six of the seven BNZ KiwiSaver Scheme funds have different mixes of growth and income assets. That means there’s a fund to suit pretty much everyone and generally no need to split your KiwiSaver savings across more than one fund. The funds are made up of different proportion of income and growth assets, which determine the risk and recommended investment timeframe of the fund. The larger the amount of growth assets in the fund, the greater the risk level becomes, and therefore the longer the suggested investment timeframe will be. Also, the BNZ KiwiSaver Scheme funds feature investments in thousands of different companies across the globe, so by selecting a single fund you can still achieve diversification.

Keeping it simple

KiwiSaver is designed to make investing simple and investing in a single fund makes it easy to keep track of your savings. That’s why good providers take care of all the hard work and ensure they offer a range of funds to suit a broad array of investors. Look for one that delivers a high quality, diversified investment option, while of course keeping fees in check.


This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact BNZ or your financial adviser. Neither BNZ nor any person involved in this article accepts any liability for any loss or damage whatsoever which may directly or indirectly result from any information, representation, or omission, whether negligent or otherwise, contained in this publication.

BNZ Investment Services Limited, a wholly owned subsidiary of Bank of New Zealand (‘BNZ’), is the issuer and manager of the BNZ KiwiSaver Scheme. A copy of the BNZ KiwiSaver Scheme Product Disclosure Statement is available on

Investments made in the BNZ KiwiSaver Scheme do not represent deposits or other liabilities of BNZ or any other member of the National Australia Bank Limited group, and are subject to investment risk, including possible delays in repayment and loss of income and principal invested. None of BNZ or any other member of the National Australia Bank Limited group, the Supervisor, and any other director of any of them, the Crown or any other person guarantees (either fully or in part) the performance or returns of the BNZ KiwiSaver Scheme or the repayment of capital