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 2 October 2025
"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:
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:
Important: General Disclaimer
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 Kernel, Pie Funds, Milford Funds, 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:
- Warning: Understanding the Risks Behind Funds Promising "8-12% Returns"
- Popular Fund Managers and Platforms to Consider
- Popular Funds to Consider
- Why Fund Survivorship Matters - The Hidden Risk in Fund Selection
- Our Favourite Funds - Where to Go From Here?
- Free Tools to Help Understand and Analyse Managed Funds
- Frequently Asked Questions
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.
Important: General Disclaimer
- MoneyHub provides this guide for informational and journalistic purposes only and does not constitute personal financial advice, investment advice, or a recommendation to buy, sell, or hold any financial product, including KiwiSaver funds, investment funds or other investment options.
- The funds or schemes highlighted on MoneyHub are selected based on historical performance data (e.g., from Morningstar or similar sources), fees, structure, and general market observations. Past performance is not a guarantee of future results.
- Any opinions, preferences, or "favourite" designations reflect the editorial views of MoneyHub and are not guarantees of future performance. Past results are not indicative of future returns, and all investments carry inherent risks, including the potential for capital loss.
- MoneyHub is not a financial adviser under the Financial Markets Conduct Act 2013, and we are not regulated by the Financial Markets Authority (FMA) to provide personalised financial advice. Readers should seek independent advice from a qualified, licensed financial adviser or use official tools before making any investment decisions. We strongly recommend considering your personal circumstances, risk tolerance, and financial goals, and consulting a professional to assess suitability.
- The information in this guide is based on historical data and may become outdated as a result. We do not accept liability for any loss or damage (including consequential loss) arising from reliance on this content, errors, omissions, or changes in market conditions. While we strive for accuracy, market data and fund performance can fluctuate. We encourage regular review of official fund reports or consultation with providers to ensure accurate information.
- As a reminder, MoneyHub may have commercial arrangements with certain schemes or providers for general promotional purposes. However, fund selections are based on merit and editorial judgment, not payment. For the latest details, contact the relevant fund provider directly.
Warning: Understanding the Risks Behind Funds Promising "8-12% Returns"
Important Alert: New Zealand investors are increasingly targeted by property investment funds promising returns of "8 to 12% per annum" and the 'security of property'. While these returns may sound attractive compared to term deposits or conservative funds, it's crucial to understand the significant risks involved:
Red flags and warning signs to watch for include:
Before you invest, ask yourself: If banks are lending to investors and homeowners at 5-7%, why would a property developer pay you 8-12%? The answer often reveals the true risk level of these investments.
Please, do not be a victim of a bad fund by getting sucked in to "projected returns". For anyone seeking independent, fee-only advice, consider firms such as Lighthouse Financial which we've reviewed in detail to explain their service.
- These returns are NOT guaranteed - these advertised returns are projections based on optimistic scenarios - some of them are 'wholesale investments' which means they're not fully regulated
- High risk profile - Property development carries a lot of risk - just because it's 'property', it doesn't mean you'll make money, or even get all of your money back
- Liquidity concerns - Your money may be locked up for years with no ability to withdraw - funds in financial trouble usually suspend repayments to their investors quickly meaning your money is locked up
- Recent failures - Several high-profile property funds have suspended withdrawals (or worse), including Du Val Group and the NIDO investment scheme - we believe there will be others to come
- Regulatory scrutiny - The FMA has issued warnings about several property investment schemes
Red flags and warning signs to watch for include:
- Promises of "guaranteed" or "fixed" returns exceeding 7% per annum.
- Limited information about the underlying property assets
- Pressure to invest quickly ("limited time offers")
- Complex structures that make it difficult to understand where your money goes (or how to get it out)
- Lack of audited financial statements or independent valuations
- Heavy reliance on new investor funds to pay existing investors - this may not be obvious, but it's a serious risk
Before you invest, ask yourself: If banks are lending to investors and homeowners at 5-7%, why would a property developer pay you 8-12%? The answer often reveals the true risk level of these investments.
Please, do not be a victim of a bad fund by getting sucked in to "projected returns". For anyone seeking independent, fee-only advice, consider firms such as Lighthouse Financial which we've reviewed in detail to explain their service.
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.
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Kernel - Our Favourite Index Fund PlatformKnow This First: Kernel is a fast-growing index fund platform that offers a low-cost and transparent approach to investing, including the popular Global 100 Fund
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Pie Funds Management - Our Favourite Boutique Fund ManagerKnow This First: Pie Funds focuses on Australian Funds; one fund has made a 14.90% p.a. return since launching in 2007)
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InvestNow Foundation Series (US 500 Fund and Foundation Series Total World Fund) - Our Favourite Long-Term and Low-Fee Vanguard InvestmentsKnow This First: 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.
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Milford Asset Management - Our Favourite Active Fund ManagerKnow This First: Milford is a top-performing New Zealand fund manager managing over $17 billion in (mostly) growth-focused funds
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Popular Funds to Consider
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Booster Savvy Review - Our Favourite Cash Fund
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Simplicity Growth Investment Fund - Our Favourite Global Index Fund
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Pathfinder Ethical Trans-Tasman - Our Favourite Fund for Sustainable Investing
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T.Rowe Price Global Equity Growth - Our Favourite Global FundOur 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.
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Kernel NZ Small & Mid Cap Opportunities - Our Favourite New Zealand Growth Index Fund
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- Performance data and analytics sourced from Sorted’s SmartInvestor and the listed funds' respective fund updates
- Selecting funds isn't for everyone - for anyone seeking independent, fee-only advice, consider firms such as Lighthouse Financial which we've reviewed in detail to explain their service.
Why Fund Survivorship Matters - The Hidden Risk in Fund Selection
Recent data from S&P (which you can download as a PDF here) reveals a critical factor that many investors overlook: many funds simply don't survive in the long term. Understanding fund survivorship is essential for protecting your wealth and achieving your investment goals. Based on a comprehensive analysis of New Zealand managed funds (which you can download as a PDF here):
Short-Term Survival (1-3 Years)
Half of all funds fail to last 15 years
What Happens When a Fund Closes? When a fund closes or merges, investors face:
Funds typically close due to:
The lesson is clear: Investing in established, quality fund managers with strong track records isn't just about returns - it's about ensuring your investment vehicle survives the journey.
How to Identify Survivors - look for funds with:
Short-Term Survival (1-3 Years)
- After 1 year: 99% of funds survive
- After 3 years: 96% of funds survive
- After 5 years: Only 92% of funds remain
- After 10 years: Just 84% survive
- Nearly 1 in 6 funds disappear within a decade
- After 15 years: Only 50% of funds survive
Half of all funds fail to last 15 years
- Global Equity funds: Just a 33% survival rate
- NZ Equity and NZ Bond funds: 50% survival rate
What Happens When a Fund Closes? When a fund closes or merges, investors face:
- Forced liquidation at potentially unfavourable times
- Reinvestment risk - finding a suitable replacement
- Lost compounding during the transition period
- Additional costs from exit fees and new entry fees
Funds typically close due to:
- Poor performance driving investor withdrawals
- Insufficient scale to remain viable
- Manager changes or firm closures
- Regulatory issues or compliance failures
- Merger with other funds (often after underperformance)
The lesson is clear: Investing in established, quality fund managers with strong track records isn't just about returns - it's about ensuring your investment vehicle survives the journey.
How to Identify Survivors - look for funds with:
- Scale: At least $50 million under management and a track record - fund managers like Kernel, Pie Funds, Simplicity and MIlford are popular starting points
- Track record: Minimum 5-year history
- Stable management: Low manager turnover
- Clear strategy: Consistent investment approach
- Strong parent company: Well-capitalised management firm
- Growing assets: Steady or increasing funds under management
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:
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:
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:
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.
Important: For anyone seeking independent, fee-only advice, consider firms such as Lighthouse Financial which we've reviewed in detail to explain their service.
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.
Important: For anyone seeking independent, fee-only advice, consider firms such as Lighthouse Financial which we've reviewed in detail to explain their service.
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
Mindful Money
- 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.
Frequently Asked Questions
How much should I invest in managed funds?
This depends on your financial situation. Generally:
- Ensure you have an emergency fund (3-6 months' expenses) first
- Don't invest money you'll need within 3-5 years
- Start small ($1,000-$5,000) to get comfortable
- Diversify across multiple funds or asset classes
- Never invest more than you can afford to lose in growth/aggressive funds
Are returns guaranteed?
No. Unlike term deposits, managed funds do not guarantee returns. Your investment can go down as well as up. Be extremely wary of any fund promising "guaranteed" returns above term deposit rates - this is often a red flag.
What fees should I expect?
Typical annual fees range from:
- Index funds: 0.20% - 0.50% p.a.
- Active funds: 0.75% - 1.50% p.a.
- Specialist/boutique funds: 1.50% - 2.50% p.a.
- Watch for hidden costs, such as buy-sell spreads and performance fees.
How are managed funds taxed?
Most funds are Portfolio Investment Entities (PIEs) with tax capped at 28%. The fund handles tax payments, and you don't need to include PIE income in your tax return. Your Prescribed Investor Rate (PIR) depends on your income - ensure it's set correctly. Our guide to minimising tax on investments has more information.
Can I lose all my money in a managed fund?
While highly unlikely with diversified funds from reputable managers, it's theoretically possible. Your money is typically held by an independent custodian, which protects it if the fund manager fails. However, the underlying investments can lose value.
What's the difference between active and index funds?
- Index funds track a market index (like the S&P 500), have lower fees, and aim to match market returns
- Active funds have managers selecting investments to beat the market, charge higher fees, and performance varies widely
Our dedicated guide has more information about active vs passive investing.
How do I know if a fund is ethical/sustainable?
Check the fund's investment policy for exclusions (weapons, tobacco, fossil fuels). Our list of ethical funds is a helpful starting point. Be aware that "ethical" definitions vary between funds.
When should I consider withdrawing from a managed fund?
Most investors consider this if and when:
- Their financial goals or circumstances change significantly
- The fund consistently underperforms its benchmark over 3+ years
- Management fees increase substantially
- The fund manager or strategy changes dramatically
- They need the money for planned expenses
Are property funds a good alternative to shares?
Property funds can offer diversification, but aren't necessarily safer than shares. Many property funds are illiquid, high-risk, and have failed recently. Commercial property funds from established managers may be suitable for some portfolios; however, avoid schemes that promise unrealistic returns. Our guide to REITs offers further information.
What's a reasonable return expectation?
Historical long-term averages (before fees and tax):
Remember: Past returns don't guarantee future performance, and short-term volatility is normal.
- Conservative funds: 4-6% p.a.
- Balanced funds: 6-8% p.a.
- Growth funds: 8-10% p.a.
- Aggressive funds: 9-12% p.a.
Remember: Past returns don't guarantee future performance, and short-term volatility is normal.
How do I choose between similar funds?
We suggest you compare:
- Long-term returns (5+ years, not just recent performance)
- Total fees and costs
- Fund size and survivorship likelihood
- Manager track record and stability
- Investment strategy clarity
- Liquidity terms
- Independent ratings and reviews
Should I invest a lump sum or drip-feed?
Both strategies have merits:
- Lump sum: Historically better returns, immediate full market exposure
- Dollar-cost averaging (drip-feed): Reduces timing risk, is psychologically easier, and is beneficial in volatile markets - our guide explains more. Many investors compromise by investing a lump sum in conservative funds, then gradually switching to growth options.
How often should I review my investments?
- Check quarterly reports to stay informed
- Conduct thorough annual reviews
- Rebalance if allocations drift significantly (>5-10% from targets)
- Avoid daily monitoring - it encourages emotional decisions
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.
The financial products featured on MoneyHub offer a curated comparison that may not encompass all features critical to your unique decision-making process, such as tax implications, risk appetite, or investment timeline, and may not align with your individual financial situation. MoneyHub accepts no liability for losses arising from its use.
The financial products featured on MoneyHub offer a curated comparison that may not encompass all features critical to your unique decision-making process, such as tax implications, risk appetite, or investment timeline, and may not align with your individual financial situation. MoneyHub accepts no liability for losses arising from its use.
Fund Manager reviews:
Fund Platforms:
Our guide to Financial Advisers outlines all you need to know about their role in your investing. We also have dedicated guides for cities all over New Zealand:
Fund Platforms:
Our guide to Financial Advisers outlines all you need to know about their role in your investing. We also have dedicated guides for cities all over New Zealand:
- Financial Advisers Auckland
- Financial Advisers Hamilton
- Financial Advisers Tauranga
- Financial Advisers Napier & Hastings
- Financial Advisers Palmerston North
- Financial Advisers Wellington
- Financial Advisers Lower Hutt & Hutt Valley
- Financial Advisers Nelson & Tasman
- Financial Advisers Christchurch
- Financial Advisers Dunedin
- Lighthouse Financial Review
