Kernel and InvestNow are two widely used platforms for low-cost index fund investing in New Zealand. Both charge zero platform fees. Both are FMA-regulated. Both offer passive index fund options. But they’re built differently.
Fund fees: InvestNow's Foundation Series is lower (from 0.03% p.a. on the US 500 Fund; 0.06% p.a. on the Total World Fund, plus a 0.50%/0.50% buy-sell fee) than Kernel's 0.25%. Minimum: Kernel $1; InvestNow $250 lump sum or $50/month. Fund range: InvestNow 100+ funds from 20+ managers; Kernel 28 of its own. KiwiSaver in the same account: Kernel only. Which suits you depends on how much you start with and whether fees or fund range matter more. Many investors use both.
Side-by-Side Comparison
| Feature | Kernel | InvestNow |
|---|---|---|
| Platform fee | $0 | $0 |
| Cheapest global fund | 0.25% (Global 100) | 0.06% (Foundation Series Total World Fund) |
| Number of funds | 28 (as at October 2026) | 100+ |
| Mobile app | ✅ Yes | Web-focused |
| Minimum investment | $1 | $250 lump sum; $50/month auto |
| Auto-invest | ✅ Yes, from $1 | ✅ Yes, from $50/month |
| KiwiSaver | ✅ Yes | ❌ No |
| Term deposits | ❌ No | ✅ Yes |
| ESG/ethical fund | ✅ Yes | Some options |
| Fund manager variety | Kernel only | 20+ managers |
| Supervisor | Public Trust | Fund-level supervisors |
Fee Comparison: Real-World Impact
The fee gap between the platforms is 0.19% on comparable global equity funds (InvestNow’s Foundation Series Total World Fund at 0.06% vs Kernel’s Global 100 at 0.25%, as at October 2026). On a $100,000 portfolio, that’s $190/year. Note that the Foundation Series index funds also carry a 0.50% buy / 0.50% sell transaction fee that Kernel doesn’t charge, which applies to every purchase and sale, including regular auto-invest contributions.
Over 20 years at 8% returns with compounding, a 0.19% fee difference costs approximately $16,100 on a $100,000 portfolio, a meaningful gap. App quality, fund selection, and the overall experience remain legitimate factors in the decision, but the fee difference itself is larger than headline numbers alone suggest.
| Portfolio | Annual fee gap | 20-year compounding cost |
|---|---|---|
| $20,000 | $36/yr | ~$3,000 |
| $50,000 | $90/yr | ~$7,600 |
| $100,000 | $180/yr | ~$15,100 |
| $250,000 | $450/yr | ~$37,800 |
On annual fees alone, the gap grows with the balance. The 0.50%/0.50% buy-sell fee on Foundation Series funds narrows it for investors who trade in and out frequently rather than holding long-term.
Providers are listed alphabetically.
InvestNow’s Features
- Lower fund fees: from 0.03% on the Foundation Series US 500 Fund, or 0.06% on the Total World Fund, vs 0.25% on Kernel (Foundation Series funds add a 0.50%/0.50% buy-sell transaction fee)
- Multiple fund managers: Dimensional, Nikko, Harbour, Milford, and 15+ others
- Passive index funds and active managers in one account
- Term deposits alongside fund investments
- The wider fund selection of the two
- Limitation: a web-focused interface rather than a mobile app
InvestNow’s lowest-fee global options include: Foundation Series Total World Fund (0.06% p.a., broad global diversification) and Foundation Series US 500 Fund (0.03% p.a., US only).
Kernel’s Features
- $1 minimum, compared with InvestNow’s $250 lump sum
- Mobile app and dashboard
- KiwiSaver in the same account
- A selection of core funds, each with an explanation page
- ESG/ethical fund option at the same 0.25% fee
- A smaller choice set
Kernel’s diversified and global funds include: High Growth Fund (~98% global and NZ shares, 0.25% p.a.) and Global 100 Fund (0.25% p.a.).
Fund-Level Comparison: Kernel Global 100 vs Foundation Series Total World Fund
These are global index funds available on each platform.
| Kernel Global 100 | Foundation Series Total World Fund | |
|---|---|---|
| What it tracks | 100 largest global companies | All-world shares (developed + emerging, all cap sizes) |
| Number of holdings | ~100 | ~1,500+ |
| Annual fee | 0.25% | 0.07% (plus a 0.50%/0.50% buy-sell transaction fee) |
| Concentration risk | Higher (top 100 stocks; heavy US tech) | Lower (broader diversification) |
| FIF exempt | ✅ (NZ PIE fund) | ✅ (NZ PIE fund) |
| Hedged version available | ✅ | ✅ (Foundation Series Hedged Total World Fund, 0.06%) |
Key difference: The Foundation Series Total World Fund holds ~1,500 companies across developed and emerging markets, while Kernel’s Global 100 holds only the 100 largest. The Total World Fund is more diversified and much cheaper on the headline fee; the Global 100 is more concentrated in large-cap companies (which have actually outperformed in recent years, but this can reverse) and carries no separate transaction fee.
Can You Use Both?
Yes, and many NZ investors do. One combination some investors use:
- InvestNow for regular index fund contributions (Foundation Series, lower fees)
- Kernel for KiwiSaver (managed in the same app as Kernel investments)
There’s no cost to having accounts on both, and no tax complexity from using multiple platforms (each platform handles its own PIE tax).
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.
Frequently Asked Questions
How do the platforms provide support? Kernel publishes a newsletter and investor content and has NZ-focused support. Both offer support by email.
Does it matter which one I start with? You can add the other platform later. Kernel’s $1 minimum is lower than InvestNow’s $250 lump-sum minimum; InvestNow’s Foundation Series has the lower annual fees.
What about switching later? You can open an InvestNow account at any time and start directing new contributions there without closing your Kernel account. Transferring existing investments between platforms typically involves selling and repurchasing (which may trigger a tax event for non-PIE funds — though most are PIE).
Summary
The two differ on these points:
| Feature | Platform |
|---|---|
| Lowest fund fees | InvestNow (Foundation Series, from 0.03%) |
| Mobile app (InvestNow is web-focused) | Kernel |
| Widest fund selection | InvestNow |
| KiwiSaver + investments | Kernel |
| Minimum under $250 ($1) | Kernel |
| Term deposits alongside funds | InvestNow |