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Ask a super expert
"Ask a super expert" is a monthly column, dedicated to answering member questions about the broad range of AustralianSuper products and services, and superannuation in general.
Questions may be about investments, insurance, pensions or any other related superannuation topic.
Each month we select one member question, which is then answered by one of our expert staff members or external providers. We can only respond to superannuation related questions of a general nature and cannot respond to questions based on your personal circumstances or provide you with personal advice.
Question: Is now a good or bad time to change investment options? I have funds in High Growth Investment Option and was thinking of changing to the Balanced Investment Option. Is it expected that high growth will have another negative year? If so when do you think the market will improve?
Monique of VIC, July 2008
Answered by: Daniel May, Communications Officer
Answer: It’s important to check every couple of years that your investment option still suits you and your circumstances. But don’t make hasty changes until you’ve fully considered your situation and personal objectives.
Unfortunately, but understandably, periods of ups and downs in the market often prompt ‘knee-jerk’ reactions from investors. However, members who try to ‘time the market’ by switching between investment options based on short-term performance often lose out because it is very difficult for even the most experienced investor to predict even short term changes in the market. By switching out of your investment option after it has experienced a loss you are ‘locking in a loss’ and not giving your account a chance to benefit from any future gains that may occur in your investment option. Any investment option you choose should be right for you over the long term. That will have the effect of both helping you achieve long term goals as well as calming any nerves that shorter-term market volatility may produce. Before switching your investment option, you may wish to seek advice from a licensed adviser to ensure your investment option is appropriate for your circumstances and goals.
To talk to a financial adviser you may wish to contact Industry Fund Financial Planning (IFFP) on 1300 138 848.
Please note: AustralianSuper does not recommend, endorse or accept responsibility for these products or services. Terms and conditions apply – these should be obtained from the relevant third-party organisation. AustralianSuper does not accept liability for any loss or damage caused by the products and services provided by this/these third party/ies. AustralianSuper may invest in this/these third party/parties but does not receive any commissions from this/these organisations as a result of members using their products and services.
The 'Ask an expert' column is not intended as personal financial advice and responses provided are of a general nature. Responses do not take into account your specific needs, so you should look at your own personal position, objectives and requirements before taking any action. You may wish to consult a qualified financial adviser who will take into account your personal financial position; however, you will be solely responsible for any investment decision that you make. Before making a decision about AustralianSuper you should obtain a Product Disclosure Statement (available in Forms and Publications) relating to the product and consider the Statement before making any decision about whether to acquire the product.
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