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 1 November 2023
"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.
- Ourlist 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 byInvestNow.
Disclaimer:The inclusion of any fund belowis not an endorsem*nt, 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 Policyhas more details. We rely onSorted’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
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| Kernel Dividend Aristocrats Fund - Our Favourite Dividend-Producing Fund
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| InvestNow - Foundation Series US 500 Fund and Foundation Series Total World Fund - Our Favourite Long-Term and Low-Fee Vanguard Investments
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| Fisher Funds NZ Growth Fund - Our Favourite Actively Managed New Zealand-Focused Growth Fund
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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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| Simplicity Growth Investment Fund - Our Favourite Global Index FundOur 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 around86% 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.
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| Pathfinder Ethical Trans-Tasman - Our Favourite Fund for Sustainable Investing
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| Kernel NZ Small & Mid Cap Opportunities - Our Favourite New Zealand Growth Index Fund
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| Punakaiki Fund - Our Favourite Alternative Investment Fund
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| Booster Private Land and Property Fund - Our Favourite Income-Producing and Capital Growth Fund
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| Harbour Enhanced Cash Fund - Our Favourite Cash Fund
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- Performance data and analytics sourced from Sorted’s SmartInvestorand the listed funds' respective fund updates
Our Favourite Funds - Where to Go From Here?
- 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.
- 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.
- 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 (orGoogle) 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.
- 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 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:
- Kernel Wealth
- Simplicity Investment Funds
Fund Platforms:
- InvestNow Review
- Sharesies Review
- Sharesies Kids Account Review
