I'm in a similar frame of mind Pipi so am looking at options. An index tracker seems the way to go - and I've got to decide between direct contribution through Smartshares or via the relatively new fund (Simplicity) both of which now offer Vanguard US and global ETF exposure.

One thing to say about Kiwisaver - I took this up when the $1000 kickstart was still around. At the time, Westpac was the only institution offering a feee waiver for under 18s so I've left it with them. There may be others now. Without the fee waiver the management fees eat away the principal unless its being actively contributed to.

In addition to ETFs and Kiwisaver, P2P may play a part but not until funds have accrued to the point where a reasonable risk spread can be achieved across loans. Also have to consider the risk of higher defaults on loans in coming years if interest rates go up and borrowers come under pressure.

In terms of tax I don't think there's an issue placing the account under your daughter's name and qualifying her for the minimum PIR. From memory when you set-up the Westpac KiwiSaver scheme for a child they calculate the (14%?) rate by default.

In any case, as Einstein said, "Compound interest is the eighth wonder of the world" so the main thing is start'em young I reckon.