A KiwiSaver fund isn’t a savings account, it’s an investment. And like all investments, it’s value can go up and down over time. Business Analyst, Sarah Ratcliffe, explains more in this short video.

As you contribute to your KiwiSaver account, whether it be through your workplace or voluntary contributions, you're actually buying units. These units represent your share of the assets in our funds, such as shares, bonds, and even commercial property. As the value of those assets go up and down, so too does the value of your units in the fund.

How much the value of the units in your fund fluctuates depends on the type of assets it holds and the overall performance of investment markets.

Conservative funds tend to experience less fluctuations with the goal of providing more stable returns, while growth funds tend to take on more risk to produce higher returns over the long term, this also leads to greater movements in the unit price in the short term.

Not sure which KiwiSaver fund you are in, or whether your current fund is right for your investment goals and timeframes? Log in to your online account and answer the short questionnaire to see what might be right for you. Or contact our team – we'll be happy to help.

For more answers to questions like this, as well as insights from our investment team, visit our video library.