Originally Posted by
littletramp
Can I throw this out there and ask for comment or opinion. Are the Kiwisaver "fixed interest rate" managed funds tied to an index in some way to measure contributors account holding? Do these work like bonds where as interest rates/yields fall the bond value increases? If so, are there potentially going to be some very disappointed wage earners in the future, who have been advised or chosen to stick with a so called conservative saving plan, only to find that should interest rates start to rise in the future they experience a degree and possibly significant amount of capital value loss?