Kernel and InvestNow are the two platforms most recommended 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 and suit different types of investors.
For the lowest fund fees, InvestNow's Foundation Series (from 0.20% p.a.) wins. For the best app and experience, Kernel wins. For fund variety and mixing managers, InvestNow wins. For KiwiSaver + investments in one place, Kernel wins. Many investors use both.
Side-by-Side Comparison
| Feature | Kernel | InvestNow |
|---|---|---|
| Platform fee | $0 | $0 |
| Cheapest global fund | 0.25% (Global 100) | 0.20% (Foundation Series International) |
| Number of funds | ~10 | 100+ |
| App quality | Good | Basic (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 0.05% on comparable global equity funds (InvestNow 0.20% vs Kernel 0.25%). On a $100,000 portfolio, that’s $50/year.
Over 20 years at 8% returns with compounding, a 0.05% fee difference costs approximately $2,500 — meaningful but not decisive for most investors. App quality, fund selection, and the overall experience are legitimate factors in the decision.
| Portfolio | Annual fee gap | 20-year compounding cost |
|---|---|---|
| $20,000 | $10/yr | ~$500 |
| $50,000 | $25/yr | ~$1,250 |
| $100,000 | $50/yr | ~$2,500 |
| $250,000 | $125/yr | ~$6,250 |
At $250,000+, the 0.05% gap becomes more significant and tips the balance toward InvestNow’s Foundation Series if fee optimisation is the priority.
When to Choose Kernel
Choose Kernel if:
- You want to start investing immediately with less than $250 (Kernel’s $1 minimum vs InvestNow’s $250)
- You want a good mobile app and clean dashboard
- You also want KiwiSaver in the same account
- You want a curated selection of 8–10 funds that are well-explained and appropriate for most investors
- You value ethical/ESG investing options (Kernel’s SRI fund)
- You prefer a simpler choice set — fewer options reduces decision paralysis
Best fund for most Kernel investors: Kernel High Growth Fund (~90% global and NZ shares, 0.25% p.a.) or Global 100 Fund (0.25% p.a.).
When to Choose InvestNow
Choose InvestNow if:
- You want the lowest possible fund fee (0.20% on Foundation Series vs 0.25% on Kernel)
- You want access to multiple fund managers — Dimensional, Nikko, Harbour, Milford, and 15+ others
- You want to mix passive index funds with some active managers in one account
- You want term deposits alongside your fund investments
- You’re comfortable with a functional but basic web interface
- You’re comparing funds and want the widest selection
Best fund for most InvestNow investors: Foundation Series International Shares Fund (0.20% p.a.) or Foundation Series Total World Fund (0.25% p.a.).
Fund-Level Comparison: Kernel Global 100 vs Foundation Series International
These are the flagship global index funds on each platform — the most common comparison.
| Kernel Global 100 | Foundation Series International Shares | |
|---|---|---|
| What it tracks | 100 largest global companies | Global developed market shares (ex-NZ) |
| Number of holdings | ~100 | ~1,500+ |
| Annual fee | 0.25% | 0.20% |
| Concentration risk | Higher (top 100 stocks; heavy US tech) | Lower (broader diversification) |
| FIF exempt | ✅ (NZ PIE fund) | ✅ (NZ PIE fund) |
| Hedged version available | ✅ | ✅ |
Key difference: The Foundation Series International fund holds ~1,500 companies across developed markets, while Kernel’s Global 100 holds only the 100 largest. The Foundation Series is more diversified; the Global 100 is more concentrated in large-cap companies (which have actually outperformed in recent years, but this can reverse).
Can You Use Both?
Yes — and many NZ investors do. A common approach:
- InvestNow for the bulk of regular index fund contributions (Foundation Series, lowest fees)
- Kernel for KiwiSaver (convenient to manage alongside 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).
Frequently Asked Questions
Which platform has better customer service? Kernel has a more active community presence (newsletter, investor content, NZ-focused support). InvestNow’s support is available but less prominent. Both are responsive via email.
Does it matter which one I start with? Not particularly. Both are low-risk decisions. If you’re under $250, start with Kernel (lower minimum). If you’re putting in a lump sum and want the lowest possible fee, start with InvestNow.
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).
Verdict
Neither platform is wrong. The choice comes down to what you value most:
| Priority | Platform |
|---|---|
| Lowest fund fees | InvestNow (Foundation Series 0.20%) |
| Best app and experience | Kernel |
| Widest fund selection | InvestNow |
| KiwiSaver + investments | Kernel |
| Starting with under $250 | Kernel |
| Term deposits alongside funds | InvestNow |