nz shares or property

[dobby41]

Bearing in mind that new KS members today are overwhelmingly young people starting out on their life's journey, I agree with kiora that the default should be a growth fund. People can then "take a little responsibility for what they do" by lowering the risk profile if they so desire

I don't disagree but I think it is set where it is so that the Govt has less accountability for putting a person into a fund that goes down and Growth fund will go down more often.

[kiora]

I don't disagree but I think it is set where it is so that the Govt has less accountability for putting a person into a fund that goes down and Growth fund will go down more often.

"Growth fund will go down more often"
It may have higher volatility but go down more often?

If the right one is picked it is more likely to go up more often and by larger amounts than so called "low risk" funds. In my view the default funds are have a likely outcome of leaving the investor poor at retirement

[dobby41]

"Growth fund will go down more often"
It may have higher volatility but go down more often?

If the right one is picked it is more likely to go up more often and by larger amounts than so called "low risk" funds. In my view the default funds are have a likely outcome of leaving the investor poor at retirement

Volatility - goes up and down.
So yes goes down more often - but has greater volatility would have said it better ;-)

And I agree that the default funds are a poor choice for most users.