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Our Favourite Managed Funds

Our list consists of funds our research team argue punch above their weight and deliver value to their investors. We reveal our favourite managers, platforms and funds for long-term growth, covering both index and active management.
Updated 24 December 2024
"What is the best fund?" is a question for the ages. We won't answer it, because there is no "best" fund. In this guide, we list popular funds and managers that stand out in an otherwise crowded market. We also list three must-know tools where you can review the latest fund data to help your decision making process.

Disclaimer: This list does not constitute financial advice, and the funds listed below are included based on their short and medium-term performance, fees, structure and, where possible, their longer-term performance. Our guide is journalistic in nature and we stand by our shortlist. There is no "best" fund - this is simply an exercise to raise awareness. The "What makes the fund stand out?" section is informational only with the purpose of explaining the merits of the fund - we are not suggesting you invest in any fund. 

Our view:
  • Managed funds are a popular way to balance investments in term deposits, ETFs and shares. Beyond KiwiSaver, there are dozens of top-performing options that take into account all risk profiles. Our profile discusses the fund and the minimum investment, but does not specifically mention fees or past returns.
  • ​Our list has been published to make potential investors aware of what’s out there and the tools to help make better investing decisions. While we’ve observed strong performances from many funds managed by Milford Funds, Kernel, Pie Funds, Harbour, Pathfinder, Booster. For super-low fee investing, we have also shortlisted two Foundation Series funds that invest in underlying Vanguard ETFs, offered by InvestNow.

Disclaimer: The inclusion of any fund below is not an endorsement, and the exclusion of any fund does not imply it is inferior to those listed below. We publish this list to help raise awareness of what’s on offer and the tools available to know the market. Our research team continues to monitor fund performance - however, the best investors make time to educate themselves on market movements. Please invest the time. 

Our guide covers:
Important information:
  • Even if you’re relying on managed funds, DIY investing requires you to understand the risks you are taking and make sure an investment fits into your investment strategy.
  • MoneyHub is conservative, and our research always looks for long-term investment options to protect and benefit anyone who wants a five, ten and twenty-year investment. This page does not cover KiwiSaver – we have shortlisted a number of our favourite KiwiSaver funds here.
  • ​Advertising Disclosure: We include the funds below based on merit, although we may have commercial arrangements with specific innovative and market-leading fund managers for general promotion. Our Advertising Policy has more details. We rely on Sorted’s SmartInvestor for all fund returns information.
  • Our Retirement in a Nutshell guide explains why saving for your retirement is essential, not optional. It outlines everything you need to know to live comfortably when you're 65 or older.

Popular Fund Managers and Platforms to Consider

Know This First: While markets faced turbulence in 2022 and 2023, stability returned in 2024. However, successful investing is always a long-term journey. The fund managers and platforms highlighted below stand out for providing New Zealand’s leading investment opportunities, helping you navigate market cycles with confidence.

Milford Asset Management - Our Favourite Active Fund Manager

  • Our View: Milford is, based on independent Sorted’s SmartInvestor data, a top-performing New Zealand fund manager managing over $17 billion in (mostly) growth-focused funds. With a proven track record, Milford offers both direct access to their funds and availability through financial advisers. Their growth-oriented funds have consistently delivered strong results over time.
  • Popular funds (in terms of total investments) include the Active Growth Fund - designed for investors seeking high growth over the long term and focuses on equities (with a portion allocated to fixed-interest assets) for balance, and the Balanced Fund - appealing to investors most likely looking for a steady mix of income and capital growth.
  • Fund performance: Milford transparently showcases fund performance data on their website, providing insights into historical and current returns.
  • Why is Milford popular? Milford’s active investment approach, proven track record of strong performance, and focus on growth-oriented investments have made it a favourite among investors of all incomes and wealth levels. It appeals to those who are comfortable with actively managed funds, performance-based fees, and taking a long-term view to achieve their financial goals.
  • ​Minimum investment: $1,000
  • More Information: Visit Milford’s website for comprehensive details on fund options, performance, and how to get started.
  • Already with Milford? Other top-performing active managers to consider include Pathfinder and Pie Funds (among others), and if you're considering index funds, Kernel and the InvestNow Foundation Series continue to be popular for low fees and growth-focused funds.

Kernel - Our Favourite Index Fund Platform

  • Our View: Kernel is a fast-growing index fund platform that offers a low-cost and transparent approach to investing. Kernel’s range of funds includes local and global markets to deliver long-term growth. With an online platform focused on user experience and efficiency, Kernel is a popular choice for first-time and experienced investors seeking simplicity and value.
  • Popular funds (in terms of total investments) include the US 500 Fund which tracks the S&P 500 Index providing exposure to the largest 500 companies in the United States (such as Apple, Meta, Microsoft and Amazon) and the Global 100 Fund which is focused on the NASDAQ-100 Index and includes some of the world’s most innovative companies across technology, healthcare, and consumer sectors.
  • Fund performance: Kernel’s website provides clear, detailed performance data for each fund.
  • Why is Kernel popular? Kernel’s focus on index funds, low fees, and modern technology makes it a standout for investors seeking simplicity and long-term growth. The platform is designed for ease of use, with automated investing, reinvested dividends, and robust tools that empower investors to take control of their financial futures. Kernel arguably offers a compelling, no-fuss solution for those looking to build wealth passively.
  • Minimum investment: $1
  • More Information: Visit Kernel’s website to explore its full range of funds, performance data, and platform features. Whether you’re just starting or are an experienced investor, Kernel provides the tools to help you succeed.
  • Already with Kernel? Looking for other options? InvestNow offers additional index fund choices, while Milford, Pathfinder and Pie Funds ​cater to those seeking active management strategies.

InvestNow Foundation Series (US 500 Fund and Foundation Series Total World Fund) - Our Favourite Long-Term and Low-Fee Vanguard Investments

  • Our view: InvestNow's Foundation Series funds are aimed at investing in tax-efficient funds, minimising the tax paid to foreign governments and putting more in the hands of New Zealand investors. The funds are innovative and invest in industry-proven assets. The Foundation Series US 500 Fund and Foundation Series Total World Fund invest in Vanguard S&P 500 ETF (Ticker: VOO) and the Vanguard Total World Stock ETF (Ticker: VT), respectively, with both Foundation Series Funds charging the same annual management fee as the underlying Vanguard ETFs of 0.03% and 0.07% p.a. respectively. The links above show the past performance of the underlying Vanguard ETFs, which have strong 3, 5 and 10-year returns, despite 2021 and 2022's negative results.  Please note that both funds are subject to entry and exit fees of 0.50% on all buy and sell orders.
  • Minimum investment: $250 (initial signup) or $50 with a regular contribution commitment
  • More details: InvestNow Foundation Series Funds
  • Disclaimer: Implemented Investment Solutions is the issuer of the Foundation Series Funds. A Product Disclosure Statement for the funds is available on the InvestNow website.

Popular Funds to Consider

Simplicity Growth Investment Fund - Our Favourite Global Index Fund

Our view: Simplicity's Growth Investment Fund invests ethically around the world. The fund fee (currently 0.25% p.a.) is low and 15% of fees are donated to charities. Simplicity is committed to low fees with around around 80% invested in shares around the world. The fund is popular with those looking for international exposure at a low cost, but like (almost) all index funds, it's likely to be a long-term investment.

Pathfinder Ethical Trans-Tasman - Our Favourite Fund for Sustainable Investing

  • Our view: Pathfinder's ethical investing policy is at the heart of everything it does. It arguably applies the strictest test, excluding any company it considers 'unethical' or a poor investment opportunity. Pathfinder's intention is to invest in companies that are undervalued, have growth potential and do not harm society. 
  • Minimum investment: $5,000
  • More details: Pathfinder Ethical Trans-Tasman Fund

T.Rowe Price Global Equity Growth - Our Favourite Global Fund

Our view: The T. Rowe Price Global Growth Fund is an externally managed fund offered in New Zealand by Harbour Asset Management. Despite a trusted reputation overseas, the fund somewhat flies under the radar locally with a modest ~$200m invested. Its low fees, comparatively strong track record, and focus on global markets make it an attractive offering.

Kernel NZ Small & Mid Cap Opportunities - Our Favourite New Zealand Growth Index Fund

  • Our view: Kernel offers low-fee index funds, with this fund focused on investing in 35+ companies valued at between $100 million and $1 billion. It's an alternative to the usual top 10 and 50 ETFs, and provides wide exposure to solid New Zealand companies.
  • Minimum investment: $1
  • More details: Kernel Funds Review

Booster Private Land and Property Fund - Our Favourite Income-Producing and Capital Growth Fund

  • ​Our view: Booster’s Private Land and Property Fund is unique. It invests in wineries and orchards located around New Zealand, focusing on the Marlborough, Nelson, Hawke’s Bay and Northland regions. Income is earned from either leasing the land or selling the crops to established buyers. The fund has a history of producing income while benefiting from capital gains – NZX data shows regular dividends. Increases in the value of the assets (comprised of land cultivated for wineries and fruit crops) directly benefit the investors. The fees include a management fee (1.00%), administration costs (0.10%) and property operating expenses (estimated to be 0.09%). If you withdraw an amount over $50,000 within one year, there is also a withdrawal fee.
  • Minimum investment: $1,000
  • ​More details:  Booster PLPF Fund or read our review

Harbour Enhanced Cash Fund - Our Favourite Cash Fund

  • ​Our view: Cash funds are largely poor value for money - you pay high fees for a fund manager to park your money in the bank or a bond. However, some challenger cash funds are sheltering everyday New Zealanders from bad cash fund returns. Our favourite right now is the Harbour Enhanced Cash Fund with its below-market 0.25% p.a. fee. It has also returned above the best term deposits over the last 6-12 months. 
  • ​Minimum investment: $100,000 (or $250 via InvestNow)
  • ​More details:  Harbour Enhanced Cash Fund

Our Favourite Funds - Where to Go From Here?

​Joining a fund is straightforward, but it's crucial to approach it thoughtfully to ensure you make the best decision for your financial goals. Here's how to navigate the process confidently:

Step 1: Connect With the Fund Manager
Getting started is as simple as visiting the fund manager's website for your chosen investment fund. Joining a fund is easy; you must complete standard ID checks and verification. For anything else, the fund manager's client service team will guide you through the process and ensure your investment is set up correctly.

Step 2: Take Your Time – No Rushing
While it's easy to cash out or switch funds later, the best approach is to make an informed, deliberate decision. Ask yourself:
  • Do I understand where my money will be invested?
  • Am I comfortable with the risks involved?
  • Is this fund aligned with my investment goals and timeframe?

If any part of the process feels unclear, don't hesitate to ask questions or seek independent advice. Do not invest in something you don't understand.

Step 3: Confirm Fund Liquidity and Accessibility
Not all funds offer the same level of liquidity, meaning the ability to withdraw your investment quickly if needed. Some funds may require a notice period or have specific rules for redemption. Ensure you're aware of:
  • Withdrawal timelines (e.g., immediate, monthly, quarterly).
  • Any fees or penalties for accessing your money early.
  • The process for redeeming your investment.

Step 4: Monitor and Understand Investor Reporting
Every quarter, your fund manager will provide a detailed performance update, offering insights into how your investment is performing and where the fund is headed. This is your opportunity to stay informed and proactive:
  • Read the reports: These documents often include valuable data on returns, market conditions, and any fund strategy changes.
  • Ask questions: If something isn't clear, don't hesitate to contact your fund manager or look up explanations online.
  • Build confidence: By engaging with the updates, you'll better understand your investment and grow your overall investing knowledge and confidence.

Step 5: Stay Focused on Long-Term Goals
​Investing is a journey, not a sprint. Resist the urge to react to short-term market fluctuations - good funds and managers go the distance. A well-chosen fund and informed decision-making can provide peace of mind and help you thrive financially.

Free Tools to Help Understand and Analyse Managed Funds

With over 700 funds available to investors in New Zealand, finding the right investment for your financial goals isn't simple. The tools below are all free to use and provide unrivalled insights into the performance and investment portfolio of each fund.
Sorted’s SmartInvestor
  • Covering managed funds and KiwiSaver, you can see the recent returns, fees, key facts, the top ten investments held, performance vs benchmark and links to all the investor documents.
  • Sorted's tool is powerful and user-friendly.
 
Mindful Money
  • Mindful Money is focused on how ethical a fund is.
  • The dataset is extensive; you can see how much (if any) a fund invests (and profits) from fossil fuels, weapons, alcohol, animal testing, gambling, human rights abuses and environmental violations.
  • If an ethical investment is a priority, Mindful Money is arguably the authority of record.
Disclaimer: This list does not constitute financial advice, and the funds listed below are included based on their short-term performance, fees, structure and, where possible, their longer-term performance. We have assigned fund risk types (i.e. conservative, growth etc.) to life stages (home deposit, retirement etc.) subjectively using commonly accepted investing principles. Our guide is journalistic in nature and we stand by our shortlist. There is no "best" fund - this is simply an exercise to raise awareness. The "What makes the fund stand out?" section is informational only with the purpose of explaining the merits of the fund - we are not suggesting you invest in any fund.
Fund Manager reviews:
Fund Platforms: