Conservative funds are categorised as low risk. They typically invest in income assets such as cash or fixed interest, with a smaller allocation to growth assets – such as shares or property – compared to higher risk funds.
Conservative funds are likely to suit savers:
- who have less than five years until being eligible to withdraw from KiwiSaver
- with between five and ten years until retirement who have a relatively low appetite for share market volatility.
Booster KiwiSaver Scheme conservative funds
A very low-risk fund offering short-term savers stable but low returns due to the annual capital guarantee. As it typically only holds a small amount in ‘growth’ assets, it gives only a very modest degree of capital gains.
The most defensive, low-risk fund, with no exposure to capital ‘growth’ investments. It provides short-term savers with a very stable, interest-income based return similar to 'on-call' bank accounts.
A low-risk fund that holds only a small amount in ‘growth’ assets. It aims to give short-term savers relatively consistent, but modest returns.
A moderate-risk and actively-managed fund aiming to give medium-term savers relatively consistent returns, with some capital gains over the medium term.
A moderate-risk fund that aims to give relatively consistent returns to medium-term savers. Its investment strategy is quite ‘passive' – it follows selected market indices over the long term, with no short-term active market timing strategies.