Is a growth fund right for me?

If you’re invested in JUNO’s Growth Fund, you’ve probably noticed your balance lately has fallen, perhaps dramatically, lately.

Market ups and downs are a normal part of investing. Over your investing journey, your balance will rise and fall, sometimes sharply - especially if you’re in a growth or aggressive fund. It’s that volatility that aims to provide you with better returns over a long period (say 10 years or more).

When you take on higher risk (the risk your balance will drop)  you are usually rewarded with potentially higher returns. 

But, what if you’re feeling anxious about this? Maybe you think the JUNO Growth Fund isn’t right for you? Or maybe you aren’t sure.

There are a couple of things to check.

1. Your investing time frame
The JUNO Growth Fund could be good for you if you won’t be withdrawing money for at least 10 years. This means that if you’re planning to use your KiwiSaver to buy a house soon, you might be in the wrong fund. View the JUNO funds here, or you can use our helpful Fund Picker Tool.

2. Your tolerance for risk
Think about how comfortable you are with investing. A growth fund might suit your investment time frame, but if you’re nervous about seeing ups and downs (volatility) in your balance, you might want to pick a fund that has fewer ups and downs. At JUNO, that’s our Balanced or Conservative funds. 

Or, with time you might get used to seeing your balance go up and down and become more comfortable with these blips.

Your KiwiSaver investment isn’t something that should make you feel worried or nervous. It’s not worth losing sleep over. It can help ease any worries to be sure you’re in the right fund type.

Help, my balance has dropped and I’ve realised I’m in the wrong fund
If you’ve realised you might be in the wrong fund, you have a couple of options. You can try to get used to the market ups and downs, and try to become more comfortable with it. This might involve reading more about volatility, or contacting us for reassurance. 

Or, you might want to change funds to a more conservative fund. Rather than change immediately, during this market dip, you might want to hold off until the markets pick up again. Or, you can change now - whatever suits your situation best.

In summary… 

  • Find the right fund type for you based on your investment timeframe and your risk tolerance. Contact your KiwiSaver provider if you’re unsure
  • Growth funds are suited for investors who will not be withdrawing their money for at least 10 years
  • Market ups and downs are a normal part of investing
  • Growth or aggressive funds experience the most market volatility, in return for potentially higher returns over the long term
  • Over the long term, your investment should increase, but during the short term there will be ups and downs
  • You lock in the value of your investment when you sell (for example, withdraw your money or change funds)
  • Until then, you haven’t lost any real money

Information correct as at February 2022. Pie Funds Management Limited is the issuer and manager of the JUNO KiwiSaver Scheme. Click here for our Product Disclosure Statement. Any advice is given by Pie Funds Management Limited, and is general only. It relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees if you act on any advice. As manager of the Scheme we receive monthly fees that are determined by your balance and whether you are 13 years or over. We will benefit financially if you invest in our products. We manage any conflicts of interest via an internal compliance framework designed to ensure we meet our duties to you. For information about the advice we can provide, our duties and complaint process and how disputes can be resolved, visit All content is correct at time of publication date, unless otherwise indicated. Past performance is not a guarantee of future returns. Returns can be negative as well as positive and returns over different periods may vary. Please let us know if you would like a hard copy of this disclosure information.