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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 ten managed funds for long-term growth, covering both index and active management
Updated 30 June 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 ten popular funds 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-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 Fisher Funds, Milford Funds and Pie Funds, we’ve included opportunities from index specialist Kernel, a cash fund from Harbour, and venture capital vehicle Punakaiki Funds, a land-focused fund from Booster, among others. 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.

While this is the first iteration of this list, our research team continues to monitor fund performance using Sorted’s SmartInvestor. 2022 has been a a challenge, with global stock markets going into freefall and the future is uncertain. The best investors make time to educate themselves on market movements.

Important: 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.

Know this: 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.

Read this first: 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.

Our Favourite Managed Funds

Know this first: While markets remain turbulent in 2022 and 2023 offers no certainty, we argue that the fund managers below are New Zealand's leading investors. However, our list goes beyond and includes off-market equity investments, index funds and cash funds that have wider appeal than growth-focused funds.

Pie Funds and Milford - Our Favourite Performers

  • Our View: Pie Funds and Milford are, based on independent Sorted’s SmartInvestor data, the two best-performing New Zealand fund managers (although Fisher Funds is arguably equally strong). Milford and Pie manage over $15 billion in (mostly) growth-focused funds. While Pie's top-performing funds have closed to new members, many growth funds are operating between Pie (6) and Milford (5), which strongly appeal to numerous long-term investors. Given both of these fund managers' track record, we've not listed specific funds as the respective growth funds have a solid history.
  • ​Minimum investment and more details: $1,000 (Milford) and $25,000 (Pie Funds)

Kernel Dividend Aristocrats Fund - Our Favourite Dividend-Producing Fund

  • Our view: 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. Unlike the other funds listed on this guide, Kernel charges a monthly $3 membership fee for those investing over $25,000, as well as a 0.25% p.a. management fee for this specific fund.   

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 here.

Fisher Funds NZ Growth Fund - Our Favourite Actively Managed New Zealand-Focused Growth Fund

  • Our view: Fisher Funds launched the NZ Growth Fund in 1998, and its track record is arguably unrivalled among funds in New Zealand. The fund's mandate is to invest in solid and growing New Zealand companies - you can get an idea of what it invests in here. Its track record is proven and we are fans of its comprehensive monthly reporting, Highlights and Lowlights, which explain the fund's performance, major holdings and movements in a very easy-to-follow format.
  • Minimum investment: $2,000 (initial lump sum), with $1,000+ additional lump sums and/or regular investments of $100 per month
  • More details: Fisher New Zealand Growth 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.

Simplicity Growth Investment Fund - Our Favourite Global Index Fund

Our view: Simplicity's Growth Investment Fund is heavy on Vanguard investments (this fund is one of many) that invest ethically around the world. The fund fee (currently 0.31% p.a.) is low and 15% of fees are donated to charities. Simplicity is committed to low fees and Vanguard-type investing; this fund is its most aggressive offering, with around 86% 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

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. Unlike the other funds listed on this guide, Kernel charges a monthly $3 membership fee for those investing over $25,000, as well as a 0.25% p.a. management fee for this specific fund. 
  • Minimum investment: $1
  • More details: Kernel Funds Review

​Punakaiki Fund - Our Favourite Alternative Investment Fund

  • ​Our view: This specialist fund offers access to more than 40 private companies that are in a high-growth stage. The Punakaiki Fund’s holdings include Weirdly (37.7%), Onceit (25.6%), Timely (3.8%), Mobi2Go (15%) and Boardingware (31.1%), among others. The success of the fund will depend on the exit prospects of the underlying investments. In early March 2021, the fund had a windfall due to the sale of Vend, netting a 5X investment return. This fund requires patience and a long-term view because it consists of illiquid (i.e. not easily bought and sold) underlying investments.
  • Minimum investment: $27,000
  • More details: Punakaiki Fund​

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?

  1. Joining a fund is very easy - all you need to do is talk to the fund manager you want to invest with. The best way is to call them or e-mail; they'll explain the process and take care of everything for you.
  2. Never rush a decision - while you can switch again, the best approach is to make a considered decision. Ask questions - don't invest without fully understanding where your money is going. Make sure you can also withdraw from the fund should you need to - some funds are less liquid, meaning you may face a delay to get your money out.
  3. Pay attention to the investor reporting - every three months, your fund manager will send you an update as to how your investment is performing. The best thing you can do is read what they send you, and ask questions (or Google) if you don't understand something. It's not complicated and will build your investing confidence.

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. Not every fund mentioned above and/or advertised in New Zealand appears in the tools - exceptions include the Punakaiki Fund and the Snowball Effect OurCrowd fund. However, we believe they provide 99.99% coverage of mainstream managed funds.
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: