What's happening with my super balance?
Wednesday, October 22nd, 2008
In the last year, investment markets around the world have experienced a significant downturn. And because super is invested in the world’s investment markets, the performance of almost every fund – and almost everyone’s super balance – has been affected.
While seeing a negative return for the year is upsetting, it’s important to remember that it’s normal for markets to move up and down. All long-term investments will experience poor or negative returns at some stage.
To achieve capital growth over the long term, fund managers need to take on a level of risk to realise returns. If they didn’t do this, they would fail to generate adequate returns after tax and inflation to make their investors money.
