No need for knee-jerk on negative super returns | Australian Markets

Superannuation fund members have been cautioned towards knee-jerk reacting to geopolitical occasions after returns turned negative in February whereas remaining below strain within the early weeks of March.

Superannuation analysis home, Chant West mentioned that after a robust January, superannuation funds skilled “a small pull-back” in February with the median growth fund (61 to 80% in growth property) down 0.9%.

It attributed the pull-back to the return of volatility to share markets on the back of weaker US financial information and issues across the potential influence of Trump’s tariff bulletins.

Commenting on the end result, Chant West senior investment analysis supervisor, Mano Mohankumar mentioned each Australian and worldwide shares had been down in February.

“With share market volatility continuing into March, and an uncertain economic and geopolitical backdrop, it’s an important time to remind members that superannuation is a long-term investment and that throughout their superannuation journey, there will be periods of choppiness,” Mohankumar mentioned.

“We caution members who may be thinking about switching from a growth fund to cash or a more conservative option with the intention to switch back later. More often than not, it results in poorer long-term outcomes than if they ride out the ups and downs. And we know that over the long term, there are far more ups,” he mentioned.

The Chant West evaluation pointed to long-term super efficiency remaining above goal, with Mohankumar stating that for the reason that introduction of obligatory super in July 1992, the median growth fund has returned 8% a yr.