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High Growth Funds Compared

Discover New Zealand’s top high growth funds - we compare actively managed funds, index funds, geared options and global exposure. From Milford to Kernel, Booster to Simplicity, our guide covers fees, tax advantages and which funds suit different investors.
Updated 31 January 2026

Summary
  • High growth funds represent the most aggressive end of the investment spectrum, typically allocating 90-100% to growth assets like shares and property.
  • For investors with time horizons of 10+ years and accepting of volatility, these funds have historically delivered superior long-term returns compared to balanced or conservative alternatives.
  • New Zealand investors now have access to an impressive range of high growth options - actively managed funds from providers like Milford, Booster, Generate, and Pie Funds compete with ultra-low-cost index funds from Kernel and Simplicity.
  • In March 2025, Booster launched the Wealth Geared Growth Fund - One of New Zealand’s few leveraged retail PIE Funds available to retail investors - adding another option for those looking at high growth investing.

Our guide helps you navigate this landscape by listing funds, discussing fees, examining the tax advantages of PIE structure and identifying which fund types suit different investor profiles. We cover:
Disclaimer
  • Funds listed are for illustration; past performance does not guarantee future returns.
  • MoneyHub provides this guide for informational purposes only and does not constitute personal financial advice or a recommendation to buy any financial product. MoneyHub is not a financial adviser

Understanding High Growth Funds

Know This First: What Defines a High Growth Fund?
  • High growth funds are characterised by their heavy allocation to growth assets – typically 90% or more invested in shares (equities) and listed property, with minimal exposure to defensive assets like bonds and cash.
  • This aggressive asset allocation means greater potential for capital appreciation over the long term, but also significantly higher volatility in the short term.

Key distinguishing features:
  • Asset Allocation: 90-100% in growth assets (shares, property, infrastructure) versus 0-10% in income assets (bonds, cash). By comparison, a balanced fund typically holds 50-70% growth assets.
  • Risk Indicator: Usually rated 5, 6, or 7 on the 1-7 risk scale used in New Zealand, indicating high volatility and the potential for significant short-term losses.
  • Investment Timeframe: Recommended minimum of 7-10+ years, allowing time to recover from inevitable market downturns and benefit from compound growth.

Why Growth Assets Matter for Long-Term Wealth
  • The mathematical case for high growth investing is compelling. Over the past century, global equities have delivered average returns significantly exceeding bonds and cash. This return premium reflects the higher risk investors accept when owning shares in businesses versus lending money through bonds.
  • The difference between a conservative and high growth approach can exceed hundreds of thousands of dollars over three decades – a life-changing sum for retirement. This illustrates why growth-oriented investments are marketed to younger and middle-aged investors with some time until retirement.

Popular Actively Managed High Growth Funds

Actively managed funds employ professional fund managers who select individual investments with the aim of outperforming market benchmarks. These managers analyse companies, economic trends, and market conditions to build portfolios they believe will deliver superior returns. In exchange for this expertise, actively managed funds charge higher fees than passive alternatives. Popular options include:

1) Milford Active Growth Fund
  • Our View: Milford’s Active Growth Fund has established itself as one of New Zealand’s top-performing growth funds over the long term. The fund takes concentrated positions in 20-40 high-conviction stocks, often deviating significantly from index weights to pursue alpha.
  • Fund specs: Management fee of 1.05-1.15% p.a. (plus potential performance fee), growth asset allocation of approximately 85-95%, risk indicator of 5/7, minimum investment of $1,000, and PIE fund structure (tax capped at 28%).

2) and 3) Booster High Growth and Geared Growth Funds
Booster offers several high growth options across its KiwiSaver Scheme and Wealth Series, including New Zealand’s only retail leveraged PIE fund.

Booster Wealth Series High Growth Fund: Launched in March 2025, this represents a competitively priced actively managed fund with responsible investment principles (RIAA certified). Management fee of 0.95% p.a., growth asset allocation of approximately 95%, minimum investment of $500, and includes allocations to unlisted New Zealand businesses through Booster Tahi and the Booster Innovation Fund (BIF).

Booster Wealth Geared Growth Fund: New Zealand’s first and only leveraged PIE fund available to retail investors. This fund uses internal gearing (borrowing) to amplify returns – both positive and negative. Unlike daily-reset leveraged ETFs, this fund uses a stable gearing ratio of approximately 35%, making it more suitable for long-term holding. Total estimated costs of approximately 3.09% p.a. including interest costs, with a recommended timeframe of 15+ years.

Important: Gearing magnifies losses as well as gains. If underlying investments fall 10%, your balance falls approximately 13.5%. This fund is only suitable for investors with very long time horizons who fully understand leverage risk.

4) and 5) Pie Funds Australasian Growth Fund (1.85% p.a.) and ​Australasian Growth 2 Fund
  • Both funds focus on smaller companies across ANZ markets. Higher minimum investment of $25,000 makes it better suited to larger portfolios.
​
6) Pathfinder Growth Fund (1.25% p.a.)
  • RIAA-certified ethical investing with comprehensive screening. Suited to investors seeking growth with values alignment.​

7) Generate Focused Growth Fund
  • Our View: Generate has built a reputation for strong long-term performance and responsible investment practices. The Focused Growth Fund is their most aggressive option, investing predominantly in growth assets with a minor allocation to income assets.
  • Fund specs: Management fee of approximately 1.38% p.a. (plus $36 annual admin fee), growth asset allocation of approximately 95%, risk indicator of 6/7, no minimum investment, and PIE fund structure.

Popular Index and Passive High Growth Funds

Index funds provide market-matching returns at a fraction of the cost of active management. Rather than trying to beat the market, these funds simply track a benchmark index, capturing the overall growth of chosen markets. The fee savings compound significantly over time, potentially adding tens of thousands of dollars to long-term outcomes.

Kernel High Growth Fund
  • Our View: Kernel’s High Growth Fund stands out for its 98%+ allocation to growth assets – higher than most competitors who retain 5-10% in defensive assets. At just 0.25% p.a. fees, it offers one of the most cost-effective paths to aggressive equity exposure in New Zealand.
  • Fund specs: Management fee of 0.25% p.a., growth asset allocation of 98%+, underlying funds are a blend of Kernel index funds (Global 100, NZ 20, etc.), no minimum investment, risk indicator of 5/7, and PIE fund structure.
​
Simplicity High Growth Fund
  • Our View: As a non-profit provider, Simplicity passes fee savings directly to investors. Their High Growth Fund allocates 98% to growth assets across approximately 900+ investments in 20+ countries, providing excellent diversification at industry-leading fees.
  • Fund specs: Management fee of 0.24% p.a., growth asset allocation of 98% (73% international, 15% NZ, 10% property), 900+ investments in 20+ countries, ethical screening that excludes weapons, tobacco and fossil fuels, no minimum investment, and PIE fund structure.

Popular Global and Regional Index Growth Funds

For investors who want to construct their own high growth portfolio or add targeted market exposure, single-sector index funds offer precise building blocks. These funds provide 100% equity exposure to specific markets or regions.

1) S&P 500 Index Funds
​The S&P 500 captures 500 of America’s largest companies, representing approximately 80% of US market capitalisation. Multiple NZ-domiciled options exist:
2) Other Global Index Options

High Growth Fund Fee Comparison and the Active vs Passive Funds Debate

Fees compound against your returns over time. Index/passive options like Simplicity High Growth (0.24% p.a.) and Kernel High Growth (0.25% p.a.) sit at the low end. Active managers range from Booster Wealth High Growth (0.95% p.a.) through to Milford Active Growth (approximately 1.15% p.a.), Generate Focused Growth (approximately 1.38% p.a.), and Pie Australasian Growth (1.87% p.a.) and Pie Australasian Growth 2 (1.87% p.a.).

The Booster Geared Growth Fund has the highest total costs at approximately 3.09% p.a. including interest costs, as our review explains. Over 30 years with similar gross returns, a $100,000 investment in a 0.25% fee fund would grow to significantly more than the same investment in a 1.50% fee fund - the difference can exceed $200,000 or more depending on returns; active funds are managed with the aim of beating the market, hence justifying the fee.

Understanding Active vs Passive
  • The active versus passive debate has intensified globally, with academic research generally favouring low-cost index funds. Studies consistently show that the majority of actively managed funds underperform their benchmarks over 10+ year periods, particularly after accounting for fees.
  • However, New Zealand’s smaller market presents nuances. Some active managers have delivered genuine outperformance – Milford’s Active Growth Fund has beaten category averages over 10 years, as has Pie Funds’ Australasian Growth Fund. The question is whether this outperformance will persist.
  • A practical approach for many investors is a core-satellite strategy: index funds for the majority of holdings (capturing market returns at minimal cost), with a smaller allocation to active managers whose philosophy you believe in. This balances cost efficiency with the possibility of outperformance.​

Our Conclusion and Bottom Line

  • High growth funds represent the most powerful tool for long-term wealth accumulation available to investors.
  • The combination of 90-100% equity allocation, PIE tax efficiency (capped at 28%), and decades of compound growth creates enormous wealth-building potential.
  • Index funds from Kernel and Simplicity offer market returns at rock-bottom fees. Active managers like Booster, Milford, Generate, and Pie Funds charge more but have demonstrated the ability to outperform.
  • For investors seeking leveraged exposure, Booster’s Wealth Geared Growth Fund (available via the Booster Wealth Series) offers New Zealand’s only PIE-structured option.
  • Ultimately, the most suitable high growth fund is one you’ll stick with through market cycles. Choose based on your genuine risk tolerance, time horizon, and preference for active versus passive management.

Frequently Asked Questions

What’s the difference between Growth and High Growth funds?

Growth funds typically hold 63-90% in growth assets, while High Growth (Aggressive) funds hold 90-100%. This higher equity allocation means greater return potential but also higher volatility. Some providers use ‘Focused Growth’ or ‘Aggressive’ to describe their most equity-heavy options.

Should I choose active or passive high growth funds?

Passive funds offer lower fees and guaranteed market-matching returns. Active funds aim to outperform but charge higher fees. Historical data suggests most active managers underperform, but some have delivered consistent outperformance. A blended approach can offer the best of both worlds.

Is the Booster Geared Growth Fund right for me?

If you're considering this fund, you need to ask yourself if you have a 15+ year time horizon, high risk tolerance, full understanding of leverage, and won’t need to withdraw during market downturns.

What happens to high growth funds in a market crash?

High growth funds will fall more than balanced alternatives during downturns. In March 2020, aggressive funds dropped 20-35% in weeks. However, those who stayed invested recovered fully within 12-18 months and went on to significant gains. The key is maintaining your investment during downturns rather than selling at the bottom.

Are high growth funds available in KiwiSaver?

Yes, many major KiwiSaver providers offer high growth options. Kernel, Milford, Generate, Booster and others all have aggressive or high growth KiwiSaver funds. Booster also offers their Geared Growth fund within KiwiSaver for members seeking leveraged exposure.

What’s the minimum investment for these funds?

Minimums vary significantly by provider. Kernel and Simplicity have no minimums - you can start with any amount. The Booster Wealth Series requires $500. Pie Funds requires $25,000 for their Australasian Growth Fund, making it better suited to larger portfolios.

Should I hedge currency exposure?

Currency hedging removes exchange rate risk but incurs annual costs of 0.30%-0.50%. Unhedged exposure can act as a shock absorber – when global markets fall, the NZD often weakens against the USD, cushioning your losses. Most long-term investors with 10+ year horizons opt for unhedged international exposure. Our guide to hedging investments explains more.
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