Best Performing KiwiSaver Funds in 2025 - Q1 Update
KiwiSaver Update
KiwiSaver assets remained steady at NZD 121 billion at the end of March 2025, with investment inflows helping offset recent market drawdowns. Although the first quarter was marked by volatility, long-term returns continue to reward disciplined investors who stay the course and avoid reacting emotionally to short-term market movements. Over the past 10 years, Aggressive funds have delivered an average annual return of 8.3%, Growth funds 7.5%, Balanced funds 6.1%, and Conservative funds 3.9% — demonstrating the clear link between higher equity exposure and stronger long-term performance. Notably, Milford stood out as the top-performing provider across multiple categories based on five-year returns.
Key Highlights
Investment Performance:
KiwiSaver fund returns dipped in the March quarter, but over the past year, they still delivered steady results on average (net of fees, before tax):
Aggressive funds: 5.5%
Growth funds: 4.9%
Balanced funds: 5.7%
Moderate funds: 5.1%
Conservative funds: 5.5%
The Power of Long-Term Investing:
Over the past 10 years, aggressive funds have averaged 8.3% annually, demonstrating the long-term benefits of a higher equity allocation.
For investors with a long investment timeframe, time is your greatest asset. Higher equity exposure can lead to significant growth, as shares tend to outperform bonds and cash over time. While equities can be more volatile in the short term, a long investment horizon allows investors to ride out market fluctuations and maximise returns.
Learn More: The Importance of a Higher Equity Allocation
Sustainable Investing Matters:
Morningstar’s Global Sustainability Ratings highlight KiwiSaver funds excelling in ESG (Environmental, Social, and Governance) criteria, allowing investors to align their portfolios with their values.
Compare Your KiwiSaver Fund:
We’ve compiled data from the Morningstar KiwiSaver Survey (as of 31 March, 2025), ranking funds based on their five-year average annual returns (after fees) to help investors make informed decisions.
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Contents
Conservative fund category top performers
Milford Conservative Fund: 4.8% (five year average return)
QuayStreet Conservative: 4.8% (five year average return)
QuayStreet Income: 4.8% (five year average return)
What difference would this make to my KiwiSaver?
The industry average return for Conservative fund types over the most recent 5 years was 3.6%*.
Best KiwiSaver Funds - Milford Conservative vs Conservative Fund Average
What are the fees compared to industry average?
KiwiSaver fees are typically calculated as a % of your total balance. The majority of KiwiSaver funds also charge a fixed admin fee, however this is relatively small and consistent across varying KiwiSaver schemes. Please note that all returns stated are net of fees (returns after fees, before tax).
Industry Average for Conservative Funds fees = 0.62%
Milford Conservative Fund fees = 0.85%
Milford Conservative Fund Description
A diversified fund that primarily invests in fixed interest securities, with a moderate allocation to equities. While conservative in nature, the Fund may experience short term negative returns, particularly in times of heightened volatility.
The Milford Conservative Fund description was obtained directly from the most recent Milford Conservative Fund Fact sheet here.
Milford Conservative Fund Asset Allocation
To find Milford’s actual asset allocation percentages for their Conservative Fund as at 30th April 2025, hover over each of the graphs elements.
Thinking about the Milford Conservative Fund?
The Milford Conservative Fund is generally suitable for a short term or naturally cautious investor who is nearing retirement or intends on making a withdrawal in the short term. It also suits an investor who values lower volatility of returns over achieving potential higher returns. Do note that past performance is no guarantee of future performance, further there are several other factors to consider when deciding on a KiwiSaver fund that is right for you including:
Responsible Investing Considerations
Process and portfolio composition
Organisational Stability
Fees
Customer service
If you want to know if your KiwiSaver fund is both being maximised and suitable for your personal situation, follow the link below to our KiwiSaver advice page. The page contains a link to our KiwiSaver Discovery Quiz that takes approximately 5 minutes to complete, and once you have finished we will provide you with a complimentary no-obligation KiwiSaver recommendation.
Moderate fund category top performers
Milford Moderate Fund: 6.8% (five year average return)
Generate Moderate Fund: 5.6% (five year average return)
Westpac Moderate: 5.2% (five year average return)
What difference would this make to my KiwiSaver?
The industry average return for Moderate fund types over the most recent 5 years was 4.5%.
Best KiwiSaver Funds - Milford Moderate Vs Moderate Fund Average
What are the fees compared to industry average?
Industry Average for Moderate Funds fees = 0.80%
Milford Moderate Fund fees = 0.96%
Milford Moderate Fund Description
The Milford KiwiSaver Moderate Fund description was obtained directly from Milford’s most recent monthly update.
To provide moderate returns and capital growth over the minimum recommended investment timeframe. A diversified fund that primarily invests in fixed interest securities, with a significant allocation to equities.
Milford Moderate Fund Asset Allocation
To find Milford’s Moderate actual asset allocation percentages for their Moderate Fund as at 30 April 2025, hover over each of the elements of the graph.
Thinking about the Milford KiwiSaver Moderate Fund?
The Milford Moderate Fund is suitable for investors who have a minimum recommended investment timeframe of 3 years before planning on withdrawing. Do note that past performance is no guarantee of future performance, further there are several other factors to consider when deciding on a KiwiSaver fund that is right for you including:
Responsible Investing Considerations
Process and portfolio composition
Organisational Stability
Fees
Customer service
If you want to know if your KiwiSaver fund is both being maximised and suitable for your personal situation, follow the link below to our KiwiSaver advice page. The page contains a link to our Discovery Quiz that takes approximately 5 minutes to complete, and once you have finished we will provide you with a complimentary no-obligation KiwiSaver recommendation.
Balanced fund category top performers
Milford Balanced: 9.4% (five year average return)
QuayStreet Balanced : 9.3% (five year average return)
QuayStreet Socially Responsible Investment: 9.2% (five year average return)
What difference would this make to my KiwiSaver?
The industry average return for Balanced fund types over the most recent 5 years was 7.3%*.
Best KiwiSaver Funds - Milford Balanced Fund Vs Balanced Fund Average
What are the fees compared to industry average?
Industry Average for Balanced Funds fees = 0.75%
Milford Balanced fees = 1.06%
Milford Balanced Fund Description
The Milford Balanced Fund description was obtained directly from the Milford Balanced Fact Fund sheet here.
A diversified fund that primarily invests in equities, with a significant allocation to fixed interest securities.
Milford Balanced Fund Asset Allocation
To find Milford’s actual asset allocation percentages for their Balanced Fund as at 30 April 2025, hover over each of the graphs elements.
Thinking about the Milford Balanced Fund?
The Milford Balanced Fund is suitable for investors who have a minimum recommended investment timeframe of 5 years before planning on withdrawing. Do note that past performance is no guarantee of future performance, further there are several other factors to consider when deciding on a KiwiSaver fund that is right for you including:
Responsible Investing Considerations
Process and portfolio composition
Organisational Stability
Fees
Customer service
If you want to know if your KiwiSaver fund is both being maximised and suitable for your personal situation, follow the link below to our KiwiSaver advice page. The page contains a link to our fact find that only takes 5 minutes to complete, and once you have finished we will provide you with a free no-obligation KiwiSaver recommendation.
Growth FUND CATEGORY TOP PERFORMERS
Milford Active Growth: 12.4% (five year average return)
QuayStreet Growth: 9.9% (five year average return)
Pathfinder Growth: 9.3% (five year average return)
What difference would this make to my KiwiSaver?
The industry average return for Growth fund types over the most recent 5 years was 9.2%*.
Best KiwiSaver Funds - Milford Active Growth Vs Growth Fund Average
What are the fees compared to industry average?
Industry Average for Growth Funds fees = 0.96%
Milford Active Growth Fund Fees = 1.20%
Milford Active Growth Fund Description
The Milford Active Growth Fund description was obtained directly from Milford’s latest Fund Fact sheet here.
Diversified fund that primarily invests in equities, with a moderate allocation to fixed interest securities.
Milford Active Growth Fund Asset Allocation
To find Milford’s actual asset allocation percentages for their Active Growth Fund as of 30th April 2025, hover over each of the elements of the graph.
Thinking about the Milford Active Growth Fund?
The Milford Active Growth Fund is suitable for investors with a minimum recommended investment timeframe of 7 years before planning on withdrawing. Do note that past performance is no guarantee of future performance, further there are several other factors to consider when deciding on a KiwiSaver fund that is right for you including:
Responsible Investing Considerations
Process and portfolio composition
Organisational Stability
Fees
Customer service
If you want to know if your KiwiSaver fund is both being maximised and suitable for your personal situation, follow the link below to our KiwiSaver advice page. The page contains a link to our KiwiSaver Discovery Quiz that takes approximately 5 minutes to complete, and once you have finished we will provide you with a complimentary no-obligation KiwiSaver recommendation.
aggressive FUND CATEGORY TOP PERFORMERS
Milford Aggressive Fund: 13.5% (five year average return)
SuperLife High Growth: 12.2% (five year average return)
Fisher TWO Scheme-Eq: 12.0% (five year average return)
What difference would this make to my KiwiSaver?
The industry average return for Aggressive fund types over the most recent 5 years was 10.9%*.
Best KiwiSaver Funds - Milford Aggressive Vs Aggressive Fund Average
What are the fees compared to industry average?
Industry Average for Aggressive Funds fees = 0.96%
Milford Aggressive Fund fees = 1.15%
Milford Aggressive Fund Description
The Milford Aggressive Fund description was obtained directly from Milford’s recent monthly Fund Fact sheet here.
The Milford Aggressive Fund aims to maximise capital growth over the minimum recommended investment timeframe. It primarily invests in international equities, with a moderate allocation to Australasian equities.
Milford Aggressive Fund Asset Allocation
To find this fund’s actual asset allocation percentages as of 30th April 2025, hover over each of the graphs elements.
Thinking about the Milford Aggressive Fund?
The Milford Aggressive Fund is suitable for investors who have a minimum suggested investment timeframe of at least 10 years before planning on withdrawing. Do note that past performance is no guarantee of future performance, further there are several other factors to consider when deciding on a KiwiSaver fund that is right for you including:
Responsible Investing Considerations
Process and portfolio composition
Organisational Stability
Fees
Customer service
*Please note that all graphs depicting projections use a $10,000 starting balance, with compounding interest at the rates stated. They exclude any further contributions (such as your employee, employer or Government contributions).
If you want to know if your KiwiSaver fund is both being maximised and suitable for your personal situation, follow the link below to our KiwiSaver advice page. The page contains a link to our fact find that only takes 5 minutes to complete, and once you have finished we will provide you with a complimentary no-obligation KiwiSaver recommendation.
Compound Wealth are based in Mount Maunganui, Tauranga and offer KiwiSaver, Investment & Retirement Financial Advice to clients all over New Zealand.