Be ready for some volatility.

When you invest in a managed fund, or directly in shares, the value of your investment will go up and down. You can see the movement in your KiwiSaver balance, fund unit value, or the price of your shares.

There are lots of reasons for changes in your investment's value, including:

  • Laws of supply and demand - desirable shares will tend to go up in price, and others may fall.
  • News about a particular share, nation or industry - good news or results will lift the price while bad news may cause it to fall.
  • Market sentiment or confidence - how investors are feeling about a particular share, or about an economy in general, has a strong influence on the market.

The overall trend is upward - but downturns will happen.

Ups and downs in the market are inevitable, and it can be stressful to see the value of your investment fall.

Despite day-to-day changes, the long-term market trend is upward. The average annual return from the share market has historically been around 10%, but in any given year the returns could be higher or lower than that.

Remember that a managed investment fund is not a savings account. Gains are not guaranteed; your balance will fluctuate. A higher-risk growth fund will probably go up and down more than a conservative or defensive fund. That's one reason why it's so important to choose the right KiwiSaver or managed fund that fits your needs.

It pays to stay on track.

When your balance drops, you might feel you want to switch funds or take money out. You might plan to move your money back again after the market has reached its low point. But it's impossible to pick the top or bottom of the market. It moves unpredictably; just a few vital days of gains, scattered throughout the year, can make a big difference to your investment growth.

The right advice can help.

A Financial Adviser can offer you some perspective when you're feeling anxious about market volatility; they can work with you to set financial targets; consider what risk level you're comfortable with; talk about your money personality; and establish your investment timeline. Everyone's situation is different, so make sure you get advice that's tailored for you.

Next steps.

Talk to an expert

Discuss your investment needs with a Westpac Financial Adviser.

Call us on 0800 942 822

Investing in Active Series

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Investing in KiwiSaver

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Things you should know.

The material on this webpage is provided for information purposes only and is not a recommendation or opinion in relation to investments.

Disclosure statements under the Financial Advisers Act are available free of charge on request from Westpac or your Westpac Financial Adviser.