New Zealand’s investment fund industry offers a wide range of options for investors seeking to grow their wealth. From conservative cash funds to high-growth share funds and specialist property secured lending funds, there’s a fund to match virtually every risk appetite and financial goal.
Most NZ investment funds operate as PIE funds (Portfolio Investment Entities), which means your returns are taxed at your Prescribed Investor Rate (PIR) — capped at 28%, providing a meaningful tax advantage for higher-income earners.
New Zealand’s workplace retirement savings scheme. Contributions come from your salary (3%, 4%, 6%, 8%, or 10%), plus employer contributions and government incentives. Funds range from defensive to aggressive, with access typically at age 65 or for a first home purchase.
Open-ended funds that pool investor capital into diversified portfolios. Available as retail (open to all) or wholesale (restricted to qualifying investors). Major NZ providers include Milford, Fisher Funds, Harbour, and Mint Asset Management.
Listed on the NZX, ETFs offer low-cost access to diversified portfolios. NZ-domiciled ETFs from Smartshares and Kernel operate as PIEs for tax efficiency.
Specialist funds that lend money secured against New Zealand property. Returns come from mortgage interest rather than market performance, providing more predictable income streams. Blossum Fund operates in this space, offering 8% p.a. with monthly distributions.
Pooled investments in specific commercial properties. Investors receive rental income distributions and potential capital gains when the property is sold.
| Fund Type | Typical Gross Return | Risk Level | Income Frequency | Liquidity |
|---|---|---|---|---|
| Cash / Money Market | 3% – 5% p.a. | Very Low | Quarterly | High |
| Conservative Managed | 4% – 6% p.a. | Low | Quarterly/Annual | Medium-High |
| Balanced Managed | 5% – 8% p.a. | Medium | Annual | Medium |
| Growth / Aggressive | 7% – 12%+ p.a. | High | Annual (if any) | Medium |
| Property-Secured (e.g. Blossum) | 7% – 10% p.a. | Moderate | Monthly | Medium |
| Property Syndicate | 6% – 9% p.a. | Moderate-High | Quarterly | Low |
The best fund depends on your goals, risk tolerance, and timeframe. For income-focused investors seeking tax-efficient returns, property secured PIE funds like Blossum (8% p.a. monthly) are worth considering. For long term growth, diversified share funds from providers like Kernel, Milford, or Fisher Funds are popular choices.
Most NZ investment funds operate as PIEs, so returns are taxed at your Prescribed Investor Rate (PIR) — max 28%. This is lower than the top personal tax rate of 39%, providing significant tax savings for higher earners.
Retail managed funds typically start from $1,000-$5,000. KiwiSaver has no minimum beyond regular contributions. Wholesale funds like Blossum require higher minimums and investor eligibility certification.
Yes. Investment funds offered to the public must be registered with the Financial Markets Authority (FMA) and comply with the Financial Markets Conduct Act 2013. Fund managers must hold an FMA licence.
Blossum’s property secured PIE fund targets 8% p.a. with monthly distributions. Available to wholesale investors.
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