Kernel is a Wellington-based investing platform that launched in 2019. It offers a focused range of index funds at 0.25% per year with no platform fee, and has built a reputation for transparency, clean design, and a thoughtful approach to passive investing.
Best for: Investors who want a clean, opinionated index fund experience. Kernel's funds are well-constructed, clearly explained, and accessible via a good app. At 0.25% p.a. with no platform fee, it's cost-competitive with InvestNow for most balances. Not ideal for: Investors who need access to a broad range of fund managers, or those who want individual share trading.
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 | ✅ Good |
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 | 0.10% |
| Kernel Socially Responsible Global Fund | 0.25% |
| Kernel Hedged Global 100 Fund | 0.28% |
At 0.25% p.a., Kernel’s fees are slightly higher than InvestNow’s Foundation Series (which starts at 0.20%), but competitive with or lower than most other platforms for comparable exposure.
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 ~90% 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. A classic balanced allocation in a single fund.
Socially Responsible Global Fund
Excludes fossil fuels, weapons, tobacco, gambling, and other sectors. Tracks an ESG-filtered global index. For investors who want ethical screening without a significant fee premium.
Hedged Global 100 Fund
Same holdings as the Global 100 but with NZD currency hedging. Removes currency risk (good when NZD strengthens); adds hedging cost (0.03% more per year). See Currency Hedged vs Unhedged ETFs NZ.
App and User Experience
Kernel has invested in its product experience. The app and web platform are clean, modern, and clearly designed. Key features:
- Auto-invest: Set a recurring deposit schedule and Kernel automatically allocates to your chosen funds. Available from $1/week.
- Portfolio dashboard: Clear breakdown of fund holdings, performance, and contributions vs returns
- Fund detail pages: Each fund page explains what it holds, why, and the risk rating — genuinely informative rather than compliance-first
- Notifications: Investment confirmations and balance updates
The app is better than InvestNow’s but not quite as polished or feature-rich as Sharesies'.
Kernel KiwiSaver
Kernel also offers a KiwiSaver scheme — separate from its investment platform. Kernel’s KiwiSaver funds use similar index-tracking approaches and are priced at 0.25%–0.39% p.a., which is among the lowest in NZ for growth funds. 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.
Who Kernel Is Best For
✅ Good for:
- Investors who want a clean, curated index fund selection with a good app
- Those who want to manage KiwiSaver and investment funds in one place
- Regular auto-investors (the auto-invest UX is excellent)
- Socially responsible investors (dedicated ESG fund)
- Investors who find InvestNow’s interface too basic
❌ Less ideal for:
- Investors who want access to a wide range of fund managers (InvestNow has 100+ funds; Kernel has ~10)
- Those who need individual share trading
- Pure fee minimisers — InvestNow’s Foundation Series (0.20%) is slightly cheaper
Kernel vs InvestNow — Quick Summary
| Kernel | InvestNow | |
|---|---|---|
| Platform fee | $0 | $0 |
| Fund fee (cheapest global) | 0.25% | 0.20% (Foundation Series) |
| Number of funds | ~10 | 100+ |
| App quality | Good | Basic |
| 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 — one of NZ’s most established supervisory institutions. Client assets are ring-fenced from Kernel’s business assets.
See What Happens If an Investment Platform Goes Bust NZ?
Verdict
Kernel is an excellent platform for NZ index fund investors who value a clean experience and want a curated, well-explained fund range. It’s not the absolute cheapest (InvestNow’s Foundation Series is slightly cheaper), but the difference is small — and Kernel’s app, auto-invest flow, and fund clarity make it genuinely better to use day-to-day.
Recommended for: Index fund investors, auto-invest regulars, KiwiSaver + investments combined, and ESG-focused investors.