Whether you choose Aggressive, Growth, Balanced or Conservative funds for your KiwiSaver, it is best to buy and hold. By switching to the highest performing fund, you are likely to have missed the wave. The most likely direction for the best performing fund of today, is the average performing fund of tomorrow.
By diversifying your funds within a single fund manager, you are not fully diversified. All fund managers have strategies and ways of handling things. The markets are always changing. What was a good strategy one year, may not be the best the following year.
Diversify your KiwiSaver right through to having multiple fund managers. We allow up to 5 fund managers to split your investment between all of them – so if you choose Growth, Balanced or Conservative, you will most likely get the average of all fund managers, and no spikes or troughs as they do well, or don’t do so well.
Diversification helps you sleep well at night. For more information, contact us here.