Search

Milford vs ANZ KiwiSaver Growth Funds Comparison

Compare Milford Active Growth vs ANZ Growth and ANZ Balanced Growth KiwiSaver funds; we look at 10 year performance, fees, risks, and how returns impact your retirement savings.
Updated 3 June 2025
Summary
  • KiwiSaver will be the only retirement nest egg for many New Zealanders. However, too many members have their money in funds that don't deliver what they should or are in funds completely unsuitable for their needs. For example, young New Zealanders in a conservative or balanced fund rather than a growth or aggressive fund, which is commonly accepted as being the most appropriate fund type given the long-term nature of KiwiSaver.
  • Whether you're earning $50,000 or $150,000+, every dollar you contribute should work as hard as you do. Small differences in fund performance and fund type can add up to hundreds of thousands of dollars over time, thanks to the power of compound interest. This is why choosing the right KiwiSaver fund matters.
  • To help make sense of the issue and give insights into historical performances, we compare the Milford Active Growth Fund with ANZ's Growth Fund and Balanced Growth Fund, using data from the Morningstar report for 31 March 2025. 

Why are we comparing these three KiwiSaver funds?
  • The size of ANZ Balanced Growth was $3.6 billion, and ANZ Growth was $4.99 billion as of 31 March 2025, totalling around $8.6 billion, which is approximately 7 percent of all KiwiSaver money in total, invested in two ANZ funds. These are ANZ's designated KiwiSaver growth funds.
  • Furthermore, ANZ's KiwiSaver scheme holds around 17 per cent of KiwiSaver money, according to Morningstar, hence returns relevant to many New Zealanders. Milford, also actively managed like ANZ's KiwiSaver funds, has historically achieved high performance, hence the comparison. 

Our guide aims to help you understand what these performance differences could mean for your retirement savings so you can make an informed choice about your future. Compounding returns are important to long-term financial security; being in an under-performing fund costs you money. To explain what you need to know, we cover:
Know This First: The Effect of ​Upcoming KiwiSaver Contribution Increases
  • With the announced changes to KiwiSaver contributions, both employee and employer contributions will rise from the current 3% of gross income.
  • From 1 April 2026, the minimum contribution rate will increase to 3.5%, and from 1 April 2027, it will further increase to 4%. These changes mean significantly more money will flow into your KiwiSaver account, amplifying the importance of choosing the right fund to maximize your retirement savings.
  • Why Your KiwiSaver Fund Choice Matters: The type of KiwiSaver fund you’re in directly impacts your long-term savings. With higher contributions, the effects of fees, risk levels, and investment performance are magnified. A well-suited fund aligns with your financial goals, risk tolerance, and investment timeline, ensuring your money grows effectively.
  • For example, higher contributions mean higher growth potential in growth or balanced funds, but these come with greater risk, while conservative funds may offer stability but lower returns, which could underperform with increased contributions over time. Poor fund choices or high fees can erode thousands of dollars from your retirement savings.
  • We compare ANZ and Milford growth funds to show how performance differences over the long term can lead to vastly different retirements. It’s never the wrong time to ensure your KiwiSaver fund is optimal.

Important: If you’ve never actively chosen a fund, there’s a good chance you’re still in a default fund, which may not be suitable for long-term growth. You can check your current KiwiSaver fund and provider by logging into MyIR.

Disclaimer - FMA and Calculations
  • Historically, the FMA has taken a dim view of KiwiSaver providers extrapolating their returns and using them in marketing (and quite rightly so). MoneyHub sent a draft of this guide to the FMA in May 2025, who responded, confirming "we don't think that publishing the guide will be an issue from the FMA's point of view" and "for the avoidance of any confusion - please don't take this review as an endorsement by the FMA of the contents of the article".
  • Our calculations use a highly conservative approach to estimate KiwiSaver growth. Specifically:
  1. We assume annual compounding and end-of-year contributions of 8% ($4,000 for a $50,000 salary, $6,400 for $80,000, etc.) for a 35-year-old over 30 years, even though contributions are made for most KiwiSaver members, every payday throughout the year.
  2. We intentionally apply cautious rounding. Other calculations may show higher figures due to more optimistic assumptions despite using the same historical 10-year returns.
  3. Our conservative estimates reduce the risk of overstating historical returns, which is a focus of the FMA, who want to ensure such projections are illustrative and not misleading.
Important: ​MoneyHub Founder Christopher Walsh Addresses Feedback on this KiwiSaver Fund Comparison
"In early June 2025, we shared this guide on Reddit PersonalFinanceNZ to spark discussion about KiwiSaver fund choices, but it was met with criticism. We value the feedback, as it helps us refine our approach to better serve New Zealanders planning for retirement.

Below, we address the key points raised by valued Redditors, which include concerns about the omission of passive funds, the complexity of our comparison, the methodology used, and the need for more detail on risks and future performance.

1. Omission of Passive Funds and Low-Fee Options
​Comment: “I don’t think you can absolve yourself of even a brief mention of passive funds… Why is there no mention of passive funds, low fees, or explanation of risks of future performance?”

Our Response:
  • We acknowledge that low-fee, passive index KiwiSaver funds, such as those offered by Kernel and Simplicity, are a compelling choice for many investors due to their cost efficiency and ability to track market performance.
  • Providers like Kernel and Simplicity (among others) offer passive funds with very low fees. These funds are particularly appealing to those who prioritise minimal costs and broad market exposure over active management.
  • Our guide focuses on comparing the Milford Active Growth Fund (9.80% p.a. 10-year return) with ANZ’s Growth (6.90% p.a.) and Balanced Growth (6.03% p.a.) funds to highlight the impact of performance gaps on retirement savings.
  • This choice reflects the reality that many New Zealanders are in ANZ funds (managing $21 billion, as of 31 March 2025, according to Morningstar), often by default, and may not be aware of the cost of underperformance.
  • Milford’s top ranking (1st of 14 for Growth Funds over 10 years) serves as a benchmark for what’s achievable with active management.
  • We didn’t include passive funds in this specific comparison to keep the analysis focused and actionable, but we agree they deserve attention and are covered extensively on MoneyHub.

2. Complexity of Fund Comparisons
Comment: “This guide compares two specific products in a way that highlights one as being superior in an area where the whole story is much more complex.”

Our Response:
  • We recognise that KiwiSaver fund selection is a complex process, involving factors such as risk tolerance, investment horizon, fees, ethical policies, and market conditions.
  • Our comparison of Milford and ANZ funds simplifies this complexity to make the impact of fund choice tangible for everyday investors.
  • By illustrating how a 2.90%–3.80% annual return gap translates to hundreds of thousands of dollars in retirement savings (e.g., $1,013,700 for Milford vs $593,800 for ANZ Growth at a $80,000 salary over 30 years), we aim to empower readers to evaluate their current funds.
  • While Milford appears superior in this comparison, we don’t claim it’s the only or best option for everyone. Many New Zealanders are satisfied with index funds or other growth funds, as they should be. ANZ’s funds, despite lower rankings (11th and 14th out of 14), likely appeal to those who value stability and banking integration.

3. Critique of the “Battle-Royale” Approach
Comment: “Your approach is fundamentally the wrong way around. You should outline the ideal characteristics of a fund (high performance, low fees, and index-driven) and work forward to find funds that match these criteria. Not immediately jump into 1v1 battle-royale style comparisons.”

Our Response:
  • We appreciate the suggestion to start with ideal fund characteristics (high performance, low fees, index-driven) and identify matching funds.
  • This is a valid approach, and we cover it in many other KiwiSaver resources on MoneyHub. However, for this guide, we chose a direct comparison to address a common scenario: New Zealanders in default or underperforming funds (e.g., ANZ) considering a switch to a top-performing fund (e.g., Milford, or any other top-performing fund).
  • The “battle royale” format is intentional to make the stakes clear and relatable. Many KiwiSaver members are unaware that staying in a fund with returns of 6.03%–6.90% per annum could cost them $262,500–$1,578,300 compared to a 9.80% per annum fund (for salaries of $50,000–$250,000 over 30 years).
  • By focusing on Milford vs ANZ, we highlight a real-world decision point supported by Morningstar data (31 March 2025). We acknowledge that other funds, including passive options, may also outperform ANZ, and we encourage the exploration of funds that meet your financial goals.

4. Risks of Future Performance and Naming Specific Funds
Comment: “Why is there no mention of… explanation of risks of future performance? If simply considering the rate of interest, why do you need to name funds at all?”

Our Response:
  • We take the risks associated with future performance seriously and align with FMA guidelines to ensure that projections are illustrative, not predictive.
  • The guide repeatedly states that past performance (e.g., Milford’s 9.80% p.a.) doesn’t guarantee future results, and actual outcomes vary due to market volatility, personal tax rates, and contribution patterns.
  • Our calculations use conservative assumptions (annual compounding, 8% contributions, no withdrawals) and cautious rounding to avoid overstating returns.
  • Naming specific funds, such as Milford and ANZ, grounds the analysis in real-world data, making it relevant to readers who may be invested in these funds or considering a switch.
  • We believe that generic rate comparisons without naming funds (e.g., 9% vs 6%) lack context and fail to have a meaningful impact.
  • By using Morningstar’s 10-year returns and rankings, we provide a credible basis for comparison while emphasising that readers should assess risk (e.g., Milford’s risk profile of 4/7 vs ANZ Balanced Growth’s 4/7) and their personal goals.

I wish you the best with your KiwiSaver, and thanks for reading this detailed response".
Christopher Walsh
​MoneyHub Founder

Funds Overview - Milford Active Growth Fund, ANZ Growth Fund and ANZ Balanced Growth Fund

Each KiwiSaver fund has its strengths, but its performance over time can significantly impact how much money you'll have by retirement. Here's a snapshot of the funds we're comparing, based on their 10 year average annual returns (after fees, before tax) as of 31 March 2025 per Morningstar data.

Milford Active Growth Fund (9.80% p.a.)
  • What it offers: A top-ranked, actively managed fund that consistently outperforms its peers. Milford's expert team focuses on diversified, sustainable investments to deliver strong returns.
  • Why it stands out: With a 9.80% average annual return over 10 years, it's the top-performing growth fund in the Morningstar March 2025 KiwiSaver report. Milford has earned accolades like Morningstar's New Zealand Fund Manager of the Year (2021–2023) and is profiled as one of our favourite KiwiSaver funds in our KiwiSaver funds list.
  • Popular with: New Zealanders who want their savings to grow faster through active management and choose providers based on proven track records.
  • More details: Visit Milford

ANZ Growth Fund (6.90% p.a.)
  • What it offers: Backed by ANZ's massive $21 billion in KiwiSaver funds under management, this fund provides broad market exposure and accessibility.
  • Why it stands out: It's a reliable choice from one of New Zealand's largest providers, but its 6.90% average return over 10 years lags behind top performers. It is one of the lower-performing funds over a 10 year period (placed 11th in a list of 14 funds submitted to Morningstar).
  • Popular with: Investors who value the stability and reach of a major bank and those tied into ANZ with their mortgage who (wrongly) believe that a bank needs to manage their KiwiSaver to be approved for a mortgage.
  • More details: Visit ANZ

ANZ Balanced Growth Fund (6.03% p.a.)
  • What it offers: A more conservative option than the ANZ Growth Fund, with a mix of growth and defensive assets for lower risk.
  • Why it stands out: Its 6.03% average return over 10 years reflects its cautious approach, but it trails higher-performing growth funds. It is the lowest-performing fund over a 10 year period (placed 14th in a list of 14 funds submitted to Morningstar).
  • Popular with: Investors who value the stability and reach of a major bank and those tied into ANZ with their mortgage who wrongly believe that a bank needs to manage their KiwiSaver to be approved for a mortgage.
  • More details: Visit ANZ

Fees, Risks Growth Asset Weighting: Milford Active Growth Fund vs ANZ Growth Fund vs ANZ Balanced Growth Fund

The table below compares the Milford Active Growth Fund, ANZ Growth Fund, and ANZ Balanced Growth Fund across key metrics to help KiwiSaver investors make informed decisions:
  • 10 Year Return shows average annual returns (after fees, before tax) as of 31 March 2025, per Morningstar.
  • Risk Profile (1-7) rates volatility from 1 (Very Low, e.g., cash funds) to 7 (Very High, e.g., aggressive equities) based on asset allocation and historical volatility.
  • Management Fees are annual fees charged by the provider.
  • Performance Fees apply only to Milford, charged at 15% of returns above the benchmark (e.g., NZX 50 Index + 5%), subject to a high watermark to ensure fairness.
  • Growth/Income Assets show the fund’s allocation to growth assets (equities, property) versus income assets (bonds, cash), indicating risk and growth potential.
  • Ethical Policy links to each provider’s ethical investment stance.
​
Disclaimer: Past performance doesn’t guarantee future results.
Fund
​10 Year Return to 31 March 2025
Risk Profile (1-7)
Management Fees
Performance Fees
Growth vs Income Assets
Ethical Policy
​Morningstar Rank (of 14)
Milford Active Growth
9.80% p.a.
​4
1.05% p.a.
15% of the Fund's returns above the Benchmark, subject to the high watermark
78/22
Visit Milford
1st
ANZ Growth
6.90% p.a.
​5
0.91% p.a. (effective 1 August 2024)
None
80/20
Visit ANZ
11th
ANZ Balanced Growth
6.03% p.a.
​4
0.87% p.a. (effective 1 August 2024)
None
65/35
Visit ANZ
14th

ANZ vs Milford Performance Comparison - What It Means for Your KiwiSaver

To show how these funds could impact your retirement, let's look at a relatable scenario: 
  • ​Imagine you're 35, contributing 8% of your salary (the minimum combined employee and employer contributions from 1 April 2027 onwards) to KiwiSaver until you retire at 65.
  • We'll calculate your savings for five income levels - $50,000, $80,000, $120,000, and $160,000 and $250,000 - based on the funds' 10 year average returns from the Morningstar report (31 March 2025).
  • MoneyHub provides these illustrative calculations to help you understand how different KiwiSaver funds' historical returns could impact your savings over time. These are not predictions or guarantees of future results.

Assumptions and Disclaimers
  • Returns: After fees but before tax (Milford: 9.80% p.a., ANZ Growth: 6.90% p.a., ANZ Balanced Growth: 6.03% p.a.). Past performance does not indicate future results. Actual outcomes will vary due to market changes, personal tax rates, and contribution patterns. Higher returns often involve higher risk, so consider your risk tolerance.
  • Contributions: 8% of your annual salary, made consistently with no withdrawals. We’ve used an 8% contribution rate (combined employee and employer contributions) to reflect future increases in KiwiSaver contribution rates for long-term relevance. For simplicity, we’ve excluded government contributions (Member Tax Credits), savings suspensions, time spent overseas, pay rises, and time off work, as these vary widely and complicate projections.
  • Compounding: Calculated annually for simplicity.
  • Tax: Returns are before tax; your actual returns may vary depending on your tax rate.
  • Projections: Illustrative, based on constant contributions and historical returns. Real-world results may differ due to market volatility, contribution changes, or other factors.
  • Data Source: Morningstar, 31 March 2025.
  • Note: MoneyHub is not a financial adviser. These calculations are for educational purposes only.

Important: We understand why the FMA scrutinises KiwiSaver schemes for long-term forecasting of past returns in their marketing. Their guidance emphasises that projections, like those over 10 years, must be clearly presented as illustrative estimates, not guarantees, to avoid misleading investors. 

Projected Savings by Income

Reminder: FMA and Calculations​
Our calculations use a highly conservative approach to estimate KiwiSaver growth. Specifically:
  1. We assume annual compounding and end-of-year contributions of 8% ($4,000 for a $50,000 salary, $6,400 for $80,000, etc.) for a 35-year-old over 30 years, even though contributions are made for most KiwiSaver members, every payday throughout the year.
  2. We intentionally apply cautious rounding. Other calculations may show higher figures due to more optimistic assumptions despite using the same historical 10-year returns.
  3. Our conservative estimates reduce the risk of overstating historical returns, which is a focus of the FMA, who want to ensure such projections are illustrative and not misleading.
  4. The starting KiwiSaver balance at aged 35 is $0
Example 1: $50,000 Salary (8% = $4,000 per year) earned as a 35 year old

​1) 10 Years of investing (to age 45):
  • Milford Active Growth (9.80%): $63,100
  • ANZ Growth (6.90%): $55,000
  • ANZ Balanced Growth (6.03%): $52,800

2) 20 Years of investing (to age 55):
  • Milford Active Growth: $223,900
  • ANZ Growth: $162,200
  • ANZ Balanced Growth: $147,600

3) 30 Years of investing (to age 65):
  • Milford Active Growth: $633,600
  • ANZ Growth: $371,100
  • ANZ Balanced Growth: $317,900

4) 40 Years of investing (to age 75, assuming work past NZ Super age):
  • Milford Active Growth: $1,676,800
  • ANZ Growth: $778,200
  • ANZ Balanced Growth: $623,700

Our View: Based on historical returns, a fund like Milford’s Active Growth (9.80% p.a.) could grow your KiwiSaver balance significantly more by age 65 compared to ANZ Growth (6.90% p.a.) or ANZ Balanced Growth (6.03% p.a.). With a $50,000 salary and 8% annual contributions:
  • Milford Active Growth's illustrative balance is $633,600
  • ANZ Growth's illustrative balance is $371,100 ($262,500 less than Milford's fund)
  • ANZ Balanced Growth's illustrative balance is $317,900 ($315,700 less than Milford's fund)
Example 2: $80,000 Salary (8% = $6,400 per year) earned as a 35 year old​

1) 10 Years of investing (to age 45):
  • Milford Active Growth (9.80%): $101,000
  • ANZ Growth (6.90%): $88,000
  • ANZ Balanced Growth (6.03%): $84,500

2) 20 Years of investing (to age 55):
  • Milford Active Growth: $358,300
  • ANZ Growth: $259,500
  • ANZ Balanced Growth: $236,200

3) 30 Years of investing (to age 65):
  • Milford Active Growth: $1,013,700
  • ANZ Growth: $593,800
  • ANZ Balanced Growth: $508,700

4) 40 Years of investing (to age 75, assuming work past NZ Super age):
  • Milford Active Growth: $2,682,900
  • ANZ Growth: $1,245,200
  • ANZ Balanced Growth: $998,000

Our View: Based on historical returns, a fund like Milford’s Active Growth (9.80% p.a.) could grow your KiwiSaver balance significantly more by age 65 compared to ANZ Growth (6.90% p.a.) or ANZ Balanced Growth (6.03% p.a.). For example, with an $80,000 salary and 8% contributions:
  • Milford Active Growth’s illustrative balance is $1,013,700
  • ANZ Growth’s illustrative balance is $593,800 ($419,900 less than Milford's fund)
  • ANZ Balanced Growth’s illustrative balance is $508,700 ($505,000 less than Milford's fund)
Example 3: $120,000 Salary (8% = $9,600 per year) earned as a 35 year old

1) 10 Years of investing (to age 45):
  • Milford Active Growth (9.80%): $151,500
  • ANZ Growth (6.90%): $132,000
  • ANZ Balanced Growth (6.03%): $126,700

2) 20 Years of investing (to age 55):
  • Milford Active Growth: $537,500
  • ANZ Growth: $389,300
  • ANZ Balanced Growth: $354,300

3) 30 Years of investing (to age 65):
  • Milford Active Growth: $1,520,600
  • ANZ Growth: $890,700
  • ANZ Balanced Growth: $763,000

​4) 40 Years of investing (to age 75, assuming work past NZ Super age):
  • Milford Active Growth: $4,024,300
  • ANZ Growth: $1,867,800
  • ANZ Balanced Growth: $1,496,900

Our View: Based on historical returns, a fund like Milford’s Active Growth (9.80% p.a.) could grow your KiwiSaver balance significantly more by age 65 compared to ANZ Growth (6.90% p.a.) or ANZ Balanced Growth (6.03% p.a.). For example, with a $120,000 salary and 8% contributions:
  • Milford Active Growth’s illustrative balance is $1,520,600
  • ANZ Growth’s illustrative balance is $890,700 ($629,900 less than Milford's fund)
  • ANZ Balanced Growth’s illustrative balance is $763,000 ($757,600 less than Milford's fund)
Example 4: $160,000 Salary (8% = $12,800 per year) earned as a 35 year old

1) 10 Years of investing (to age 45):
  • Milford Active Growth (9.80%): $202,100
  • ANZ Growth (6.90%): $176,000
  • ANZ Balanced Growth (6.03%): $169,000

2) 20 Years of investing (to age 55):
  • Milford Active Growth: $716,700
  • ANZ Growth: $519,000
  • ANZ Balanced Growth: $472,400

3) 30 Years of investing (to age 65):
  • Milford Active Growth: $2,027,400
  • ANZ Growth: $1,187,600
  • ANZ Balanced Growth: $1,017,300

4) 40 Years of investing (to age 75, assuming work past NZ Super age):
  • Milford Active Growth: $5,365,800
  • ANZ Growth: $2,490,400
  • ANZ Balanced Growth: $1,995,900

Our View: Based on historical returns, a fund like Milford’s Active Growth (9.80% p.a.) could grow your KiwiSaver balance significantly more by age 65 compared to ANZ Growth (6.90% p.a.) or ANZ Balanced Growth (6.03% p.a.). For example, with a $160,000 salary and 8% contributions:
  • Milford Active Growth’s illustrative balance is $2,027,400
  • ANZ Growth’s illustrative balance is $1,187,600 ($839,800 less than Milford's fund)
  • ANZ Balanced Growth’s illustrative balance is $1,017,300 ($1,010,100 less than Milford's fund)
$250,000 Salary (8% = $20,000 per year) earned as a 35 year old

1) 10 Years of investing (to age 45):
  • Milford Active Growth (9.80%): $315,700
  • ANZ Growth (6.90%): $275,000
  • ANZ Balanced Growth (6.03%): $264,000

​2) 20 Years of investing (to age 55):
  • Milford Active Growth: $1,119,800
  • ANZ Growth: $811,000
  • ANZ Balanced Growth: $738,100

3) 30 Years of investing (to age 65):
  • Milford Active Growth: $3,167,800
  • ANZ Growth: $1,855,600
  • ANZ Balanced Growth: $1,589,500

4) 40 Years of investing (to age 75, assuming work past NZ Super age):
  • Milford Active Growth: $8,384,000
  • ANZ Growth: $3,891,200
  • ANZ Balanced Growth: $3,118,700

Our View: Based on historical returns, a fund like Milford’s Active Growth (9.80% p.a.) could grow your KiwiSaver balance significantly more by age 65 compared to ANZ Growth (6.90% p.a.) or ANZ Balanced Growth (6.03% p.a.). For example, with a $250,000 salary and 8% contributions:
  • Milford Active Growth’s illustrative balance is $3,167,800
  • ANZ Growth’s illustrative balance is $1,855,600 ($1,312,200 less than Milford's fund)
  • ANZ Balanced Growth’s illustrative balance is $1,589,500 ($1,578,300 less than Milford's fund)

Key Insights and the Power Compounding of Returns - ANZ vs Milford

Regardless of your salary, fund performance gaps can profoundly affect your retirement savings. Based on historical returns, Milford Active Growth (9.80% p.a.) outpaced ANZ Growth (6.90% p.a.) by 2.90% annually and ANZ Balanced Growth (6.03% p.a.) by 3.77%. By age 65, this could mean:
  • $50,000 salary: $262,500 more with Milford Active Growth vs ANZ Growth; $315,700 more vs ANZ Balanced Growth
  • $150,000 salary: $839,800 more vs ANZ Growth; $1,010,100 more vs ANZ Balanced Growth

These figures are hypothetical, assuming 8% annual contributions, no withdrawals, and historical returns after fees but before tax. Higher returns often involve higher risk, so consider your risk tolerance.

Why Your KiwiSaver Fund Choice Matters

Your KiwiSaver is a lifelong investment, and even a small difference in annual returns can grow into a fortune over decades. For example, over 30 years:

A 0.10% return gap
  • On a $50,000 salary, it could mean $6,730 less by age 65
  • On a $150,000 salary, it could mean $20,190 less

A 0.50% return gap
  • On a $50,000 salary, it could mean $35,000 less
  • On a $150,000 salary, it could mean $105,100 less

​A 1.00% return gap
  • On a $50,000 salary, it could mean $73,800 less
  • On a $150,000 salary, it could mean $221,400 less

Important: Our examples and calculations are not a guarantee of future performance. Past returns (e.g., Milford's 9.80% p.a.) don't predict future results, and markets can fluctuate.

Make an Informed KiwiSaver Decision

Choosing the right KiwiSaver fund depends on your financial goals, risk tolerance, and investment timeline. Here's how to get started:
Our View: Your KiwiSaver is a powerful tool, an investment that will be essential for most New Zealanders retiring in the coming years. While all our projections are illustrative, and actual results will vary, the dollar effects of different returns are clear.

Milford vs ANZ Growth Funds - Frequently Asked Questions

What is a KiwiSaver fund's return and how does a higher return affect my KiwiSaver?

A fund's return is the annual percentage growth of your investment, after fees but before tax. For example, Milford's historical return is 9.80% p.a., while ANZ's Balanced Growth is 6.03% p.a. per Morningstar, 31 March 2025. Past returns don't guarantee future results.

​Higher returns can significantly boost your KiwiSaver balance over time, as outlined in this research although actual outcomes vary due to market changes and risk.

Important: Splitting your KiwiSaver savings across multiple funds does not inherently reduce the gains, as each fund’s returns are calculated independently on the portion of your savings allocated to it. Investment growth applies to each “bucket” based on its specific return rate, and the total growth is the sum of each fund’s contribution. For example, if you split $10,000 equally across three funds, each $3,333 portion grows at its respective rate, and your total balance reflects the weighted average return.

Are higher-return funds always better?

Not necessarily. Higher returns (e.g., Milford Active Growth's 9.80% p.a.) often come with higher risk. ANZ Balanced Growth (6.03% p.a.) is more conservative. We suggest choosing a fund based on your goals and comfort with risk.

Can I lose money in my KiwiSaver?

Yes, funds with higher returns (e.g., Milford's Active Growth) may fluctuate more, risking temporary losses. Less 'aggressive' growth funds (e.g., ANZ Balanced Growth) are steadier but grow slower. You'll need to understand your risk tolerance before choosing your fund.

How do fees compare between Milford and ANZ?

Milford Active Growth charges higher fees than ANZ, but the returns we present and calculate are net of fees to avoid any further complications.

How does tax affect my KiwiSaver returns?

Returns are reported before tax, and your actual returns depend on your Prescribed Investor Rate (PIR). Higher earners may see slightly lower after-tax returns - our guide to KiwiSaver and Tax explains what you need to know. 

Can I split my KiwiSaver across multiple funds?

The Milford KiwiSaver Plan offers the option of investing your contributions in any of the funds listed below or splitting your contributions across multiple Funds. You need to state the percentage you wish to invest in each Fund, ensuring the total amounts to 100%. The funds include:

I'm nearing retirement—should I stay in a growth fund?

Growth funds, such as Milford Active Growth, are ideal for long-term growth but may be more volatile. If you're nearing retirement (e.g., within 5–10 years), a balanced or conservative fund may better suit your needs. You should think about this carefully or consider splitting your investment across a range of funds.

Why focus on age 35 for projections?

We use age 35 as many New Zealanders have lower KiwiSaver balances at this stage due to first-home withdrawals, time overseas, or other priorities, making it a critical time to optimize fund choice.
Related resources: