Find the right investment fund to grow your retirement savings. Compare fees, returns, and investment strategies from New Zealand's leading fund managers. Professional investment management for seniors who want their money to work harder.
Investment funds provide expert portfolio management with diversification across multiple assets. Ideal for seniors who want professional oversight without the stress of managing individual investments.
New Zealand's leading investment fund managers offer a range of options suitable for retirement investing. Here's how they compare:
Long-established New Zealand fund manager with award-winning performance. Known for active management approach and wide range of investment options from conservative income funds to growth portfolios.
Boutique investment specialist with a strong focus on quality investments and income generation. Known for conservative approach and personalized service. Popular with retirees seeking regular income distributions.
One of NZ's fastest-growing fund managers with strong historical performance across all fund types. Comprehensive range from conservative to aggressive portfolios. Active management approach with regular client communication.
Large, established fund manager with extensive resources and research capabilities. Offers multi-asset investment approach with focus on ESG (environmental, social, governance) investing options for values-based investors.
Most fund managers require minimum initial investments:
Investment funds come in different varieties, each suited to different goals and risk tolerances. Here's what seniors need to know:
Focus on generating regular income through dividends and interest payments. Invest in dividend-paying shares and bonds.
Prioritize capital preservation with majority in bonds and cash. Lower returns but much lower risk and volatility.
Mix of shares and bonds providing balance between growth and stability. Most popular choice for retirees with 5-10 year timeframes.
Primarily invested in shares for maximum long-term growth. Higher returns but significant volatility. Suitable for seniors with long timeframes.
Most investment funds in New Zealand are PIE (Portfolio Investment Entity) funds, which offer significant tax advantages for many seniors:
PIE funds use your Prescribed Investor Rate (PIR) instead of your marginal tax rate. For many seniors, this results in lower tax on investment earnings.
Scenario: Senior with only NZ Super income ($28,000/year) earns $5,000 in investment fund returns.
Tax saving: $625 per year! That's 12.5% more money in your pocket.
When you invest in a PIE fund, you'll be asked to provide your PIR. It's important to get this right:
Seniors typically benefit from conservative to moderate funds that focus on capital preservation and regular income. The best fund type depends on your specific situation:
Focus on dividend-paying shares and bonds. Provide regular quarterly or monthly distributions. Ideal if you need investment income to supplement NZ Super.
Majority in bonds and cash. Minimal volatility. Choose if you need money within 1-3 years or can't tolerate any losses.
Mix of shares and bonds. Moderate risk. Good if you won't need the money for 5-10 years and want some growth.
💡 Recommendation: Most seniors benefit from a combination - keep emergency funds (1-2 years expenses) in conservative/cash funds, and invest longer-term money in balanced or income funds for better returns.
This depends on your financial situation, risk tolerance, and investment goals. Here's a framework for seniors:
⚠️ Important: Never invest money you might need in the next 1-2 years. Investment funds can go down in value short-term, and you want to avoid being forced to sell at a loss.
Investment fund earnings are subject to tax, but PIE (Portfolio Investment Entity) funds offer significant tax advantages for most seniors:
Example tax saving: Senior on NZ Super only ($28,000/year) earning $4,000 from investment fund:
💡 Action required: When investing, you must provide your correct PIR to the fund manager. Use IRD's online PIR calculator or check with your accountant.
Most investment funds in New Zealand allow regular withdrawals with relatively flexible access, but terms vary by fund manager and fund type:
Keep 6-12 months of expenses in bank savings/term deposits for true emergencies. Use investment funds for longer-term money you don't need immediate access to. This prevents forced selling at bad times.
Choose low-fee, senior-friendly investment funds from NZ's leading providers. Fees matter more than you think - a 0.5% fee difference can cost you $50,000+ over 20 years on a $200k portfolio.
| Provider | Conservative Fund | Balanced Fund | Annual Fee on $100k | 5-Yr Return |
|---|---|---|---|---|
| Simplicity | 0.31% | 0.31% | $310/yr | 4.2% |
| Superlife | 0.45% | 0.45% | $450/yr | 4.5% |
| Milford | 0.58% | 0.68% | $580-680/yr | 5.1% |
| Fisher Funds | 0.62% | 0.72% | $620-720/yr | 4.8% |
| ANZ Investments | 0.69% | 0.79% | $690-790/yr | 4.3% |
$200,000 invested for 20 years at 5% growth:
Saving $17,000+ by choosing low-fee provider! That's nearly a full year of NZ Super.
Situation: $150k from selling family home, needs capital preservation
Risk tolerance: Low - can't afford losses
Time horizon: 10-15 years
Fund choice: Simplicity Conservative (0.31% fees)
Allocation: 80% bonds/cash, 20% shares
Expected: 3.5-4.5% p.a.
Situation: $300k from KiwiSaver + savings, still healthy and active
Risk tolerance: Moderate - can handle ups and downs
Time horizon: 20+ years
Fund choice: Milford Balanced (0.68% fees)
Allocation: 50% bonds, 50% shares
Expected: 5-7% p.a.
Situation: $200k invested, wants regular income to supplement NZ Super
Risk tolerance: Low-moderate
Time horizon: 15 years
Fund choice: Superlife Income (0.45% fees)
Allocation: 70% income assets, 30% growth
4% withdrawal: $8,000/year ($667/mo)
Situation: $400k invested, NZ Super covers expenses, wants to leave inheritance
Risk tolerance: Higher - won't need money for 15+ years
Time horizon: 20-30 years (leaving to children)
Fund choice: Fisher Funds Growth (0.82% fees)
Allocation: 80% shares, 20% bonds
Expected: 7-9% p.a.
Compare investment fund managers and find the right balance of growth, income, and security for your retirement portfolio.