KiwiSaver growth funds had a strong year last year as local and international share markets took off, according to research firm Morningstar.
The average performance for growth funds was 14.6 per cent in 2013 with top performing fund OneAnswer Growth up 19.9 per cent for the year.
Growth funds significantly outstripped conservative and balanced funds which on average were up 5.8 per cent and 11.3 per cent respectively.
Conservative funds invest mainly in cash and fixed interest investments while growth funds invest mainly in shares and property assets.
Over five years growth funds now outstrip conservative funds which initially performed well amid the global financial crisis.
Growth funds had an average performance of 10 per cent per annum for the last five years while conservative funds returned 6.3 per cent per annum on average and balanced funds had an average return of 8.7 per cent over five years.
But despite the strength of growth funds most of the KiwiSaver money remains in the conservative category.
Of the $17.6 billion invested in KiwiSaver $5.97 billion is in conservative funds while $3.3 billion is in growth funds and a further $1.1 billion is invested in aggressive growth funds.
ANZ bank maintained its dominance as the largest KiwiSaver provider with $4.65 billion in funds under management while ASB is second largest at $3.64 billion.
The strongest performing fund over the year was the FC Scheme's Active High Growth fund which returned 27.9 per cent and invests in international shares. It has just $3 million in assets.