Investing with KiwiSaver.

KiwiSaver is a way to grow your money for the future.

But despite having 'saver' in the name, it's not a savings account, it's an investment. That's an important distinction: with a savings account, your money is always available, and you always know exactly how much money will be there. With a KiwiSaver investment, your money can only be withdrawn when you qualify, e.g. for a first home purchase or when you reach 65, and the balance can go up and down.

When you make a contribution to the Westpac KiwiSaver Scheme, your money goes into a managed fund. Professional fund managers invest your money, along with money from other KiwiSaver members, in assets like shares, property and bonds. You pick what fund you want your money to go into – for example a Conservative, Balanced or Growth Fund.

Balancing risk and reward

Some assets are riskier than others: shares and property are relatively risky when compared to cash and bonds. In general, riskier assets have higher potential returns.

KiwiSaver funds are sorted by risk. Growth funds invest more heavily in shares and property, less heavily in cash and bonds. They tend to have the highest returns over time but are the most volatile – your balance could go up and down significantly.

Conservative funds have a bigger chunk of their money invested in cash and bonds, with a smaller proportion (sometimes nothing) invested in shares and property. They are likely to have lower returns, but your balance will be more stable.

More opportunities, a wider variety of assets

By pooling members' money, KiwiSaver fund managers can invest across a wide range of countries, industries and types (or 'classes') of assets.

For instance, a fund might own shares in Apple, Volkswagen and Nintendo, among hundreds of other companies. It might also invest in property, government bonds and currency from around the world. The fund members get access to all these assets just by investing in a single fund.

KiwiSaver grows faster than savings

By joining KiwiSaver, choosing the right fund and contributing regularly, you can more quickly build up a deposit for a first home, or for a more comfortable retirement.

Although it does come with certain risks, a KiwiSaver fund has the potential to grow your savings at a greater rate than just putting aside a chunk of your earnings each week. And because the money comes out of your salary and leaves your account before you see it, it can be a less painful way to accumulate money.

Choosing a fund that fits

If you don't specify a fund when you join, you will be automatically enrolled in a default fund or a conservative fund, which may not be the best match for you. You can check which fund you're in through Westpac One® Online Banking. Learn more on choosing the right fund for you or switch funds at any time with our tool below.