Investment markets can change overnight. But that doesn’t mean you have to change with them. Here’s some information to help you stay focused on what’s important.
With sharemarket volatility a daily part of news headlines, it's only natural to be concerned about how the fluctuations might be affecting the value of your investments. It can also be tempting to move your money into less risky investments.
The best way to keep your investments safe in times of volatility is to follow these five simple rules:
1. Stay calm
Do not rush any investment decision.
2. Diversify your investments
It’s notoriously difficult to predict what’s going to be the best performing asset class in any given year. Diversifying investments across asset classes allows you to benefit from each year’s best performing asset classes. It can also help you smooth out the volatility of your returns.
3. Spend time in the market
One of the most powerful features of long-term investing is the ability to benefit from compound returns. By staying invested, as opposed to regularly entering and exiting the market, your investments have more time to grow and earn returns.
4. Monitor and review your investment strategy
Like most things in life, it’s a good idea to regularly review your financial plan to make sure it’s still right for your current financial situation.
5. Seek professional financial advice
A financial adviser can help ensure your strategy meets your needs, and even help you update it as your circumstances change. With a clearly defined strategy and goals, you can have the confidence you need to withstand market fluctuations.
Take a look at OnePath's Market insights which has market updates, expert opinion and webcasts to help you make sense of the markets.
It’s also a good idea to talk to your financial adviser. They can help you work out a clearly defined strategy that meets your goals, and gives you confidence when markets are volatile.
While it can be tempting to jump out of your investments in volatile markets and keep your money in a bank account, doing so can have a big impact on your long-term savings goals.
For starters, jumping out of investments after a downturn essentially turns ‘paper’ losses into real losses. It also robs your investments of a chance to recover.
History shows us that investors who stick to their long-term strategy tend to come out ahead. Despite short-term crises, sharemarkets historically recover and make gains over time.
If you're worried about the safety of your investments, talk to your financial adviser to make sure that the strategy you have in place still meets your future needs and goals.
While no one can predict what will happen in financial markets, it's important to remember that there will always be movements. In the last year or so we have experienced volatility, but OnePath and other economic and financial experts believe that the markets will return to stability.
History has shown us that markets will always fluctuate. But it has also shown us that the longer you stay invested, the less affected you are by short-term volatility.
For market updates, expert opinion and economic webcasts, take a look at OnePath's Market insights. The information is designed to keep you up-to-date, and help you make sense of what's happening in the markets.
You can be confident your investments are secure with OnePath.
OnePath is a financially strong and profitable business that is well placed to weather market turmoil. OnePath (and our predecessors ING and Mercantile Mutual) have operated in Australia for more than 130 years. We have withstood many changes in the markets (including the Great Depression) and have gone on to create opportunities and grow our business.
Our key focus is to support and provide services to our customers, and we are also working to build business across our core markets of superannuation, investments and insurance.
We are a leading and trusted brand in financial services, being the third largest life insurer and the six largest retail fund manager in Australia.
Our goal is to help Australians grow and protect their wealth, and we are here for our customers through all market cycles.
This has been provided for general information purposes only. It does not purport to recommend any particular adviser or provide you with financial advice. In addition to seeking financial advice, potential investors must always read the Product Disclosure Statement for the relevant product before making an investment decision.