A KiwiSaver aggressive fund, also called a high growth fund, invests almost entirely in shares, aiming for the highest long-run returns of the standard fund types. It is also the type with the largest short-term swings. Here’s what an aggressive fund holds, how it differs from a growth fund, and which schemes offer one.
What Is an Aggressive Fund?
An aggressive fund (called “high growth” by some providers) holds 85–100% of assets in growth investments — predominantly international and NZ shares, with minimal or no allocation to bonds or cash.
Typical aggressive fund asset allocation:
| Asset class | Approximate allocation |
|---|---|
| International shares | 55–75% |
| NZ shares | 10–20% |
| Listed property/infrastructure | 5–10% |
| Bonds and cash | 0–10% |
Unlike a growth fund (typically 70–85% growth assets), an aggressive fund maintains very little defensive allocation. In a market downturn, there’s little cushioning from bonds or cash.
Not all KiwiSaver providers offer an aggressive or high growth fund — availability varies.
Returns and Volatility
With little or nothing in bonds and cash, an aggressive fund’s balance moves almost one for one with share markets:
- In a strong year for shares, it has the highest returns of the standard fund types.
- In a fall (the 2008 global financial crisis, March 2020, 2022), it has fallen furthest, with no defensive allocation to cushion the drop, and has later recovered; recoveries have taken from months to several years.
- Over long periods, aggressive funds have historically returned approximately 8–10% or more a year before fees and tax. Past returns do not guarantee future performance.
A fall becomes a permanent loss only if units are sold before prices recover, which is why the size of an aggressive fund’s swings matters most for money that will be withdrawn soon, such as for a first home. Risk by time horizon covers how that changes with the years until withdrawal, and KiwiSaver during a recession covers switching after a fall.
Aggressive vs Growth
The difference is the share of growth assets: typically 85–100% for an aggressive fund against 70–85% for a growth fund. At some providers the gap is only 10 to 15 percentage points. Over long periods the extra share exposure has added somewhere around 1 percentage point a year of return in the historical ranges above, which compounds over decades; the cost is larger falls along the way.
Aggressive Fund Availability in NZ
Not all KiwiSaver schemes offer an aggressive tier; some have growth as their highest-risk option. Schemes that offer one include (alphabetical):
| Provider | Fund name |
|---|---|
| ANZ | High Growth |
| BNZ | High Growth |
| Booster | High Growth |
| Generate | Focused Growth |
| Kernel | High Growth |
| Milford | Aggressive |
| Simplicity | High Growth |
| SuperLife (Smart) | High Growth |
Fund names change; check the provider’s current product disclosure statement. Fees for these funds are listed in the KiwiSaver fee comparison by fund type.
Passive and Active Aggressive Funds
Some aggressive funds are passive: they track share indices rather than having managers choose stocks, and charge lower fees. Others are actively managed. Passive vs active KiwiSaver funds covers how the two compare after fees.
Switching to an Aggressive Fund
Your provider handles a move into its aggressive or high growth option, generally online, and no tax arises on the switch itself. Where a provider offers no aggressive tier, getting one means moving to another KiwiSaver provider, a separate transfer. Switching fund type, step by step covers the process.
Summary
| Feature | Aggressive fund |
|---|---|
| Risk level | High |
| Typical return (long-run, before fees and tax) | 8–10%+ p.a. |
| Asset mix | 85–100% growth assets |
| Main risk | Share market falls with little cushion, especially close to a withdrawal |