Simplicity is best known as New Zealand’s lowest-fee KiwiSaver provider. But they also offer non-KiwiSaver investment funds — accessible to any NZ resident, with the same industry-low fees.
Simplicity's investment funds charge 0.10% p.a. — the lowest fee of any diversified investment fund in NZ. The Growth Fund is the flagship: globally diversified, includes NZ shares and bonds. Minimum $1,000 to open, $50/month regular contributions. Not-for-profit structure. No individual fund selection or shares. Best for: cost-focused investors who want a simple, one-decision portfolio.
Simplicity Overview
| Feature | Details |
|---|---|
| Founded | 2016 |
| Type | Not-for-profit charitable trust |
| Products | KiwiSaver + non-KiwiSaver investment funds |
| Investment minimum | $1,000 |
| Regular contributions | From $50/month |
| Fee | 0.10% p.a. (all funds) |
| Supervisor | Public Trust |
| FMA licensed | Yes |
| PIE fund | Yes |
Simplicity is structured as a not-for-profit, which allows them to operate at near-cost. Their fee structure (0.10%) is significantly below all competing managed funds in NZ.
Available Investment Funds
| Fund | Growth/Defensive split | Fee | Minimum |
|---|---|---|---|
| Simplicity Growth Fund | ~80% growth / 20% defensive | 0.10% | $1,000 |
| Simplicity Balanced Fund | ~60% growth / 40% defensive | 0.10% | $1,000 |
| Simplicity Conservative Fund | ~35% growth / 65% defensive | 0.10% | $1,000 |
| Simplicity NZ Bond Fund | 100% NZ fixed interest | 0.10% | $1,000 |
All four funds are PIE funds, taxed at your PIR rate (max 28%).
Simplicity Growth Fund — Detail
The Growth Fund is the most popular non-KiwiSaver fund and appropriate for most long-term investors.
What it holds:
- Global shares (~55%): passive, tracks MSCI World ex-Australia indices via Vanguard
- NZ shares (~15%): NZX 50 index
- Australian shares (~5%): ASX via passive index
- NZ bonds and cash (~20%): NZ government and corporate bonds
- International bonds (~5%)
Currency hedging: Simplicity hedges approximately 50–70% of international currency exposure — a moderate hedge position.
Responsible investing: Simplicity excludes companies involved in weapons, tobacco, gambling, and fossil fuel extraction. It’s an ESG-aware fund without being a pure ESG/ethical fund.
Historical performance (approximate, total return after fees):
- 1-year: varies significantly by market conditions
- 5-year: approximately 7–9% p.a.
- 10-year: approximately 8–10% p.a.
Past performance does not predict future returns.
How Simplicity Compares to Alternatives
| Provider | Fund | Fee | Fund variety | App quality |
|---|---|---|---|---|
| Simplicity | Growth Fund | 0.10% | 4 funds only | Basic web |
| InvestNow | Foundation Series | 0.20% | 20+ funds | Good web |
| Kernel | High Growth | 0.25% | ~10 funds | Excellent app |
| Sharesies | Index funds | ~0.50%+ | Wide | Good app |
Simplicity’s strengths:
- Lowest fee in NZ (0.10%) — the lowest of any diversified managed fund
- Not-for-profit structure — fees go to costs, not profit
- Simple decision: choose growth, balanced, or conservative
- Solid ESG exclusions built in
Simplicity’s limitations:
- No individual fund customisation (you get what’s in the fund)
- No NZ/global split control — you can’t adjust geographic allocation
- No shares or ETF trading
- $1,000 minimum (higher than Kernel’s $1)
- Web interface is basic compared to Kernel
- No international shares fund (global exposure is bundled within the Growth Fund)
Simplicity vs InvestNow
| Feature | Simplicity | InvestNow |
|---|---|---|
| Fee | 0.10% | 0.20% (Foundation Series) |
| Fund selection | 4 funds | 100+ funds |
| NZ/global split control | No | Yes |
| Minimum | $1,000 | $250/fund |
| Auto-invest | Yes | Yes |
| App | Web only (basic) | Web (good) |
Choose Simplicity if: You want the absolute lowest fee and are happy with the pre-built growth/balanced/conservative structure.
Choose InvestNow if: You want to control your NZ vs international allocation, access a wider range of funds, or have a lower minimum investment.
Simplicity vs Kernel
| Feature | Simplicity | Kernel |
|---|---|---|
| Fee | 0.10% | 0.25% |
| Minimum | $1,000 | $1 |
| App | Basic web | Excellent mobile |
| Fund options | 4 | ~10 |
| S&P 500 fund | No | Yes |
| Auto-invest | Yes | Yes |
Fee difference on $100,000: Simplicity $100/year vs Kernel $250/year — $150/year gap, or $7,500 over 20 years at 8% growth.
Choose Simplicity if: Cost is your primary driver and you’re happy with a simple one-fund approach.
Choose Kernel if: You want a better app, a $1 minimum, or access to specific funds (S&P 500, Global 100, ESG).
Who Should Use Simplicity Investment Funds?
Best for:
- Cost-focused investors who want to minimise fees above all else
- Investors comfortable with a simple pre-built allocation
- Those who don’t need an NZX shares component (Simplicity’s NZ exposure is bundled, not separately accessible)
- Investors with $5,000+ who find 0.10% vs 0.25% meaningful at their balance
Not ideal for:
- Investors who want granular control over fund allocation
- Those who want to also trade individual shares (need a different platform)
- Investors wanting an S&P 500-only or global-only fund (Simplicity bundles NZ in the Growth Fund)
- Beginner investors who might struggle with the $1,000 minimum — Kernel’s $1 minimum is better for starting small
How to Open a Simplicity Account
- Go to simplicity.kiwi
- Click “Open an Account” (investment fund, not KiwiSaver)
- Verify identity (NZ driver licence or passport)
- Link your bank account
- Transfer $1,000 initial investment
- Set up a regular monthly contribution ($50 minimum)
The process takes 15–20 minutes. Funds typically appear within 2–3 business days.
Simplicity KiwiSaver vs Simplicity Investment Fund
Both use the same 0.10% fee and same underlying fund structure. The key difference:
- KiwiSaver: Locked until 65 (exceptions for first home, hardship, serious illness)
- Investment Fund: Fully accessible — you can sell and withdraw anytime
Many investors use both: Simplicity KiwiSaver for the retirement/employer match/government top-up, and the Simplicity investment fund for additional long-term savings outside the KiwiSaver lock-up.