With hundreds of PIE funds available in New Zealand, choosing the right one requires understanding your goals, risk tolerance, and the tax advantages each fund offers. This guide compares the best PIE fund options across different investment categories for 2026.
We assess PIE funds based on five criteria: after-tax returns (at the 28% PIR), fees, risk-adjusted performance, fund manager quality, and liquidity terms.
If you’re looking for reliable, tax-efficient monthly income, property secured PIE funds combine the 28% PIR cap with asset backed returns.
Blossum Fund targets 8% p.a. distributed monthly, secured by first ranking mortgages over NZ property at max 75% LVR. Available to wholesale investors. The PIE structure means your effective after-tax return is 5.76% (at 28% PIR) — significantly higher than what most term deposits deliver after tax.
For investors with a 7+ year horizon who can tolerate volatility, share-based PIE funds offer the highest long term return potential. Look for low-cost index funds or quality active managers with strong track records.
If capital preservation is your priority, cash-focused PIE funds offer bank-like returns with the 28% PIR advantage. Returns of 4-5.5% are typical, with very low volatility.
Balanced and multi-asset PIE funds spread your capital across shares, bonds, property, and alternative assets. A single fund gives you broad diversification with automatic rebalancing.
| Category | Gross Return Range | After-Tax (28% PIR) | Risk Level | Best For |
|---|---|---|---|---|
| Property-Secured (e.g. Blossum) | 7-10% | 5.0-7.2% | Moderate | Monthly income, capital preservation |
| Growth Share Funds | 8-12%+ | 5.8-8.6%+ | High | Long-term wealth building |
| Balanced Funds | 5-8% | 3.6-5.8% | Medium | Set-and-forget diversification |
| Cash/Fixed Income | 4-5.5% | 2.9-4.0% | Low | Capital preservation |
| NZ Property Funds | 5-8% | 3.6-5.8% | Medium-High | Property exposure without ownership |
The best PIE fund depends on your goals. For tax-efficient monthly income: property secured PIE funds like Blossum (8% p.a.). For long term growth: low-cost share index PIE funds. For capital preservation: cash PIE funds. All benefit from the 28% max PIR tax rate.
Growth share PIE funds can return 10%+ in good years but are volatile. Property-secured PIE funds like Blossum offer a more consistent 8% p.a. with monthly distributions. After-tax returns in a PIE are always better than equivalent non-PIE investments for 33%+ taxpayers.
Yes, especially for New Zealanders in higher tax brackets. The 28% PIR cap provides a meaningful tax advantage over term deposits and direct investments. PIE funds cover every risk profile from cash to growth shares to property secured lending.
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