Navigating Market Volatility

Navigating market volatility: Staying on track with your super

Market volatility is a natural part of investing and can sometimes feel unsettling. However, it’s essential to remember that superannuation is a long-term investment strategy. Our goal is to help you stay informed and confident about your financial future, even during uncertain times.

Thinking about changing your investment option? Consider this first

If market movements have you thinking about changing your investment option, here are some things to keep in mind:

The long-term perspective: Super is designed to compound and grow over time. Some investment options, like those with a large share allocation, have the potential to deliver stronger long-term returns but do come with ups and down that can make you feel nervous. However, market volatility is a normal part of investing in shares.

Markets tend to recover: Historically, markets have rebounded after periods of volatility.

Reacting too quickly to market changes, such as frequently switching investment options or opting for lower-risk options, may lead to reduced retirement savings over time.

If you decide to switch to a more conservative, lower risk investment option, you may lock in or crystallise your losses and miss out on any future increase if the markets recover.

Experts are managing your super: Our investment partner Funds SA has a team of highly experienced, investment professionals who actively manage your super. The team is focussed on delivering the best possible returns to members over the long-term while managing risk and liquidity (preserving and growing capital).

Market volatility is a big part of the investment journey and can present investment opportunities that Funds SA, as an active manager, will look to take advantage of such as buying shares at a lower price when there is a downturn in the market.

Investment options are diversified: Diversification in superannuation investment options helps manage market volatility by spreading investments across different asset classes, sectors, and regions. This can reduce the impact of a downturn in any single area, smooths out returns, and lessen the effect of big market shocks. Overall, it supports steady long-term growth and can protect your super savings during market ups and downs.

We have some resources that can help:

  • Visit our investment performance page which can help you understand the different investment options available, their suggested investment timeframes and past performance.
  • You can also use our Risk Profiler tool which may help guide you when making investment decisions.

If you’re unsure or considering changing your investment strategy, we encourage you to speak with a licensed financial adviser. They can guide you based on your individual circumstances and goals. You can use the 'Find A Planner' search on the Financial Adviser Association Australian (FAAA) website. This will help you locate a financial planner who is local to you.

The superannuation schemes administered by Super SA are exempt public sector superannuation schemes and are not regulated by the Australian Securities and Investments Commission (ASIC) or the Australian Prudential Regulation Authority (APRA). Super SA is not required to hold an Australian Financial Services Licence to provide general advice about a Super SA product. The information in this publication is of a general nature only and has been prepared without taking into account your objectives, financial situation, or needs. Super SA recommends that before making any decisions about its products you consider the appropriateness of this information in the context of your own objectives, financial situation, and needs, read the Product Disclosure Statement (PDS), and seek financial advice from a licensed financial adviser in relation to your financial position and requirements.