A KiwiSaver aggressive fund — also called a high growth fund — invests almost entirely in shares, aiming for the highest possible long-run returns. It’s the highest-risk, highest-potential-return option available in KiwiSaver. For members with long time horizons and the stomach for volatility, it can be the most powerful choice.
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.
Expected Returns
Aggressive funds target the highest returns but also experience the most significant short-term swings.
Approximate long-run returns (before fees and tax):
| Fund type | Historical long-run average (approx.) |
|---|---|
| Conservative | 3–5% p.a. |
| Balanced | 5–7% p.a. |
| Growth | 7–9% p.a. |
| Aggressive | 8–10%+ p.a. |
Past returns do not guarantee future performance.
In a strong year, an aggressive fund may return 20–30%. In a severe downturn (e.g., 2022 or COVID 2020), it may fall 20–30% or more. The key is that over a 20–30+ year horizon, this volatility averages out — and the higher long-run return compounds dramatically.
Aggressive vs Growth — Is the Difference Meaningful?
Yes, over long horizons — but the numbers require context.
Illustrative comparison — $10,000 starting balance, $300/month contributions, 30 years:
| Fund type | Assumed return | Projected final balance |
|---|---|---|
| Growth | 8% p.a. | ~$436,000 |
| Aggressive | 9.5% p.a. | ~$551,000 |
| Difference | ~$115,000 |
Projections are illustrative. Fees and tax not included. Actual returns vary significantly.
The 1–2% additional return from an aggressive fund is material over 30 years — but it comes with greater annual volatility. Whether that trade-off is right depends on your time horizon and temperament.
Who Should Be in an Aggressive Fund?
Aggressive funds are appropriate for:
- Members under 40 with 25+ years to retirement — the longest possible time horizon allows the most recovery time from market falls
- Members who genuinely understand market volatility — watching your balance fall 25% in a year and not reacting
- Members who want to maximise long-run wealth accumulation — and have the risk capacity to absorb the volatility required to achieve it
- Members with no plans to use KiwiSaver before age 65 — aggressive funds are unsuitable if you might withdraw for a first home within 5 years
Who Should NOT Be in an Aggressive Fund?
- Members over 55 — insufficient time to recover from a major market fall
- Members who would panic-switch during a downturn — switching to conservative at the bottom of a fall locks in losses and undermines the entire strategy
- First home buyers planning to withdraw within 5 years — move to a conservative or balanced fund well in advance of withdrawal
- Members who lose sleep over investment performance — this is a legitimate reason to choose a slightly lower-risk fund, even if mathematically sub-optimal
Aggressive Fund Availability in NZ
Not all KiwiSaver providers offer an aggressive fund. Those that do:
| Provider | Fund name | Approx. fee |
|---|---|---|
| Simplicity | — (growth is highest tier) | 0.31% + $30/yr |
| Kernel | Global 100 / NZ 20 | ~0.25% + $60/yr flat |
| Milford | Aggressive | ~1.05% |
| Generate | Focused Growth | ~1.05% |
| Booster | High Growth | ~0.45–0.65% |
| BNZ | Aggressive | ~0.55% |
| ANZ | Aggressive | ~1.11% |
| Superlife | High Growth | ~0.30% |
Fees change; verify with provider before switching. Fund names vary.
Some providers use “growth” as their highest-risk option (no aggressive tier). Simplicity’s growth fund at 0.31% is one of the lowest-fee options for primarily share-based KiwiSaver investing in NZ.
Passive Aggressive Funds — The Best of Both Worlds?
Several aggressive-style KiwiSaver funds are passively managed — they track a global index rather than having fund managers actively selecting stocks. This keeps fees low while capturing near-total market returns.
Kernel’s Global 100 fund tracks the MSCI World Top 100 companies. Superlife’s High Growth fund is index-based. Simplicity’s growth fund uses Vanguard index funds.
For most aggressive KiwiSaver investors, a low-cost passive fund will outperform most high-fee active aggressive funds over long periods — simply because fees compound just as returns do.
See passive index KiwiSaver funds explained for more.
The Psychological Challenge
The biggest risk for aggressive fund members isn’t market performance — it’s behavioural. A 25% fall on a $100,000 balance is a $25,000 paper loss. Many people find this intolerable and switch to conservative at the worst possible moment.
Historical recovery data from NZ KiwiSaver growth/aggressive funds:
- GFC (2008–09): recovery to previous highs within 4–5 years
- COVID crash (March 2020): recovery within 12 months
- 2022 rate-rise selloff: recovery within 18–24 months
If you’re in an aggressive fund, the plan during a downturn is simple: do nothing. Continue contributing. The recovery will come. Members who switched to conservative during COVID, then back to growth — paid twice in fees and locked in losses.
How to Switch to an Aggressive Fund
- Log in to your provider’s portal
- Navigate to investment / fund selection
- Choose “aggressive” or “high growth” (if available)
- Confirm
If your provider doesn’t offer an aggressive fund, you may need to switch providers. Compare options in the best KiwiSaver providers guide.
Full switching guide: how to change your KiwiSaver fund type.
Summary
| Feature | Aggressive fund |
|---|---|
| Risk level | High |
| Typical return (long-run) | 8–10%+ p.a. |
| Asset mix | 85–100% growth assets |
| Best suited to | Under 40, very long horizon |
| Poor fit for | Over 55, upcoming home withdrawal, low risk tolerance |
| Typical NZ fee range | 0.25%–1.11% |