Digital cryptocurrency could be an investment option to consider for your KiwiSaver fund in the future if NZ Funds Management’s new approach to investing super pays off.
As it stands, KiwiSaver isn’t a saving’s account – it’s an investment of your money on your behalf by your KiwiSaver provider. Each provider may have a different selection of investment options that they choose to invest in, but each fund type has its own specific asset types it traditionally invests in.
With investments like gold, stocks and bonds, and property included in many KiwiSaver funds, the popular cryptocurrency Bitcoin is considered to be a commodity on par with gold when it comes to investing. It has the potential to become a way to diversify your investment portfolios, much like how current funds invest into various growth assets to boost their returns.
Bitcoin as an asset for investment currently contains 5% of NZ Fund’s KiwiSaver Growth Strategy fund’s money. The fund began investing in the cryptocurrency back in October 2020, following in the footsteps of Australian super providers who had begun a similar investment option for its members in terms of cryptocurrency.
Currently, KiwiSaver funds focus primarily on investing in one of six categories:
- Defensive
- Conservative
- Balanced
- Growth
- Aggressive
- Life Stages
Speak with your KiwiSaver provider about ways to invest your money for the future in your fund.
