The answer could be yes or no depending on your situation, appetite for risk and the amount of time you plan to leave your money in your KiwiSaver account. We'll provide some rules of thumb here, but get financial advice if you'd like a personalised recommendation.

More aggressive funds are likely to yield better returns over a long time period, but they also fluctuate more than conservative funds. This is why we recommend them to people with more time left in KiwiSaver to ride the highs and lows.

If you're planning to use your KiwiSaver money in the next few years, you might not have time to wait for a market recovery in the event of a downturn. This could mean you suddenly end up with less for your house deposit than you thought you would.

If you've just seen your balance take a big dip and are scrambling to move into a less risky fund, you might want to consider your goals and plans carefully before doing so. Switching to a more conservative fund during a large market downturn (e.g. the COVID crash) could mean that you lock in those losses.

Ultimately, which fund you're in should be based on your goals and preferences. If you'll be taking it out soon, a conservative fund might be good. If you've got some time on your side - ride the wave, baby.

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