Can you time the market with your KiwiSaver?

When the market takes a dip, it can be frustrating and it’s tempting to take action. We’ve seen it many times — people shift their money from growth funds into conservative ones in an attempt to play it safe.

But what feels like a protective move in the moment can often lead to bigger setbacks in the long run. Reacting out of fear during a downturn can cause you to miss out when the market recovers — which is exactly when long-term gains are made.

The risk of locking in your losses

When you shift your KiwiSaver into a conservative fund during a downturn, you’re not avoiding the loss – you’re locking it in. Then, when the market recovers, as it usually does, you’ve already missed the bounce back.

Think of it like selling your house when property prices dip. You wouldn’t do that unless you absolutely had to. If you panic and sell at a lower price, you've locked in the loss. But if you wait it out, chances are the market will recover and your home’s value will rise again.

Your KiwiSaver works in much the same way. It’s designed for the long term, not to be chopped and changed with every bump in the market.

Delayed response

Even if you did have a crystal ball and could predict exactly when the market would drop or bounce back, there's another problem — switching your KiwiSaver fund isn’t instant. It can take up to two business days for a fund switch to be processed, which means by the time the change goes through, you’ve likely missed the moment.

That’s because KiwiSaver isn’t built for quick trades or short-term plays. It’s a long-term investment, designed to grow steadily over time.

Leave it to the experts

If you’re with an active KiwiSaver provider, their fund managers are already doing this work for you. These are professionals who are watching the markets closely, making informed decisions based on research and experience, not fear.

They're constantly tweaking and adjusting your investments depending on what's happening in the economy. If they spot a downturn coming, or a new opportunity emerging, they can react quickly and strategically. It’s a hands-on approach that gives your KiwiSaver the best chance to grow – especially when the market gets tricky.

And perhaps best of all, it means you don’t have to carry the stress or guesswork. You can stick to your long-term plan, knowing there’s a team of experts working behind the scenes to keep things on track.

The big picture

Trying to time the market by jumping in and out of different funds might feel like you're taking control, but it often does more harm than good. In most cases, it means locking in your losses and missing the recovery when the market bounces back. And it’s during those rebounds that a lot of growth is made.

The smarter move is making sure you’re in the right fund — one that aligns with your goals, your values, and your comfort with risk — then staying the course. That’s where MoneyGuide comes in. We’ll help you choose the fund and provider that’s the best fit for you, and we’ll be here with expert advice throughout your KiwiSaver journey. So why wait? Chat with one of our expert KiwiSaver advisers and get your money working harder for your future. You can relax knowing your fund is in the right place.