According to new estimates by SuperRatings, the 2015 median investment return on balanced super funds was 5.3 per cent and experts believe we are in for similar growth in 2016. This is the fourth year in a row where super funds have delivered growth and some are suggesting by the law of averages, that a negative year is not far away.
“While it is nearly impossible to predict returns for the coming year, discussions with funds have suggested that most expect the low-return environment to be with us for the short to medium term, with returns estimated to be low to mid-single digits in 2016,” said SuperRatings CEO Adam Gee.
Centra Wealth Group managing director Zac Zacharia has suggested that the likelihood of negative yearly return depended less on the year and more on how a person’s funds are invested.
“If you are approaching retirement you need to be a little more proactive, and it pays to have a closer look at your investments, at least once a month.” said Mr Zacharia.
“Everyone who sets and forgets in a balanced fund has to expect a negative return at least once every seven years, in line with market cycles,” he said.
How did your fund perform in 2015? Do you know what type of investment plan your funds are currently invested in? Are you going to start 2016 by reconsidering your investment strategy?
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