Kernel is a Wellington-based investing platform that launched in 2019. It offers a focused range of mostly index funds at 0.25% per year with no platform fee; Kernel groups its Balanced and Cash Plus funds as actively managed.
What it offers: A focused range of Kernel's own funds, mostly index funds, each with an explanation page and accessible via an app, at 0.25% p.a. with no platform fee and a $1 minimum. Limitations: Only Kernel's own funds (no other fund managers), no individual share trading, and a higher headline fee than InvestNow's Foundation Series (from 0.03%).
Kernel at a Glance
| Founded | 2019 (Wellington, NZ) |
| CEO | Dean Anderson |
| FMA licensed | ✅ Yes |
| Supervisor | Public Trust |
| Platform fee | $0 |
| Transaction fee | $0 |
| Management fee | 0.25% p.a. (most funds) |
| Minimum investment | $1 |
| Auto-invest | ✅ Yes — from $1 |
| Individual shares | ❌ No |
| KiwiSaver | ✅ Yes (separate KiwiSaver product) |
| App | ✅ Yes (mobile and web) |
Fees in Detail
Kernel is straightforward on fees. There is no platform fee and no transaction fee. You pay only the annual fund management fee, which is 0.25% for most funds (deducted from the fund daily, not charged separately).
| Fund | Annual fee |
|---|---|
| Kernel Global 100 Fund | 0.25% |
| Kernel S&P 500 Fund | 0.25% |
| Kernel NZ 20 Fund | 0.25% |
| Kernel High Growth Fund | 0.25% |
| Kernel Balanced Fund | 0.25% |
| Kernel Conservative Fund | 0.25% |
| Kernel NZ Cash Plus Fund | 0.25% |
| Kernel Global ESG Fund | 0.25% |
| Kernel Global 100 Fund (NZD Hedged) | 0.25% |
At 0.25% p.a., Kernel’s fees are higher than InvestNow’s Foundation Series (which starts at 0.03%).
Kernel’s Funds Explained
Global 100 Fund
Tracks an index of the 100 largest global companies by market capitalisation. Heavily weighted to US tech (Apple, Microsoft, Nvidia, Amazon, Alphabet). High growth potential; high concentration risk in large-cap US tech.
S&P 500 Fund
Tracks the 500 largest US-listed companies. Broader than the Global 100; more diversified across US sectors.
NZ 20 Fund
Tracks the 20 largest NZX-listed companies. Higher NZ concentration than a global fund; useful for NZ-specific exposure or for investors who want home country allocation.
High Growth Fund
A multi-asset fund weighted ~98% growth assets (global and NZ shares). One-fund option for long-term investors who want an aggressive allocation.
Balanced Fund
~60% growth / ~40% income assets in a single fund. Unlike Kernel’s index funds, Kernel lists the Balanced Fund (and the Cash Plus Fund) as actively managed.
Global ESG Fund
Excludes fossil fuels, weapons, tobacco, gambling, and other sectors, tracking an index aligned with the Paris Agreement. For investors who want ethical screening without a fee premium — it’s priced the same as Kernel’s other core funds (0.25%).
Global 100 Fund (NZD Hedged)
Same holdings as the Global 100 but with NZD currency hedging, at the same 0.25% fee. Removes currency risk (good when NZD strengthens) with no extra fee for the hedging. See Currency Hedged vs Unhedged ETFs NZ.
App and User Experience
Kernel has a mobile app and a web platform. Key features:
- Auto-invest: Set a recurring deposit schedule and Kernel automatically allocates to your chosen funds. Available from $1/week.
- Portfolio dashboard: Breakdown of fund holdings, performance, and contributions vs returns
- Fund detail pages: Each fund page explains what it holds, why, and the risk rating
- Notifications: Investment confirmations and balance updates
InvestNow is primarily web-based; Sharesies’ app also covers individual shares.
Kernel KiwiSaver
Kernel also offers a KiwiSaver scheme — separate from its investment platform. Kernel’s core KiwiSaver funds are priced at 0.25% p.a., among the lowest in NZ for growth funds, with its wider/specialty and thematic fund range running up to about 0.45% p.a. If you use Kernel for both KiwiSaver and investment funds, you manage everything in one account.
Note: KiwiSaver funds and investment funds are legally separate products — you cannot combine them or transfer between them.
Tax Handling
All Kernel funds are PIE funds. Tax is deducted at your PIR before returns are credited. No FIF exposure for Kernel’s global funds — they are NZ-domiciled PIE funds that handle this internally.
Ensure your PIR is set correctly in your Kernel account (Account → Tax Settings). See PIR Rate NZ.
Features and Limitations
Features:
- A selection of Kernel’s own index funds, with a mobile app
- KiwiSaver and investment funds managed in one place
- Auto-invest from $1/week
- A dedicated ESG fund at the same 0.25% fee
Limitations:
- Narrower fund range: Kernel has 28 of its own funds (as at October 2026), while InvestNow has 100+ funds from 20+ managers
- No individual share trading
- Higher headline fee than InvestNow’s Foundation Series (from 0.03%)
Kernel vs InvestNow — Quick Summary
| Kernel | InvestNow | |
|---|---|---|
| Platform fee | $0 | $0 |
| Fund fee (cheapest global) | 0.25% | 0.03% (Foundation Series) |
| Number of funds | 28 | 100+ |
| Mobile app | ✅ | Primarily web-based |
| KiwiSaver | ✅ | ❌ |
| Term deposits | ❌ | ✅ |
| ESG fund | ✅ | Some options |
Full comparison: Kernel vs InvestNow
Is Kernel Safe?
Kernel is FMA-licensed and its funds are registered managed investment schemes under the FMCA. Public Trust acts as the independent supervisor for Kernel’s funds. Client assets are ring-fenced from Kernel’s business assets.
See What Happens If an Investment Platform Goes Bust NZ?
Summary
Kernel offers a range of its own index funds at 0.25% p.a., with no platform or transaction fee, a $1 minimum, auto-invest, an ESG fund, and KiwiSaver in the same account. InvestNow’s Foundation Series has lower headline fees (from 0.03%), and InvestNow has a wider fund range (100+ funds). Which matters more depends on whether you value fund choice and the lowest headline fee, or a single app with a narrower range.
Where to check the latest data
Rates, fees and returns change often. Before deciding, check current figures yourself:
- Sorted Smart Investor: compares fees, returns and risk levels of KiwiSaver and managed funds.
- Disclose register: holds each fund's product disclosure statement and quarterly fund updates.
- Financial Service Providers Register: shows whether a provider is registered to offer financial services in New Zealand.
- The provider's own website: has its current rates, fees and full terms; these change more often than any comparison page.