Super can keep you ahead even when the market is fluctuating!

It’s easy for investors to wait for more certain times before making voluntary contributions to top up super but short term volatility can be a good thing as you will be buying assets that are cheaper than usual. Sometimes even when the markets recover investors wait for them to drop again to invest.

One way of reducing the risk of investing during times of market volatility is to make regular contributions at regular intervals rather than one large investment.  For example if Paul invests $100,000 in a fund and acquires 100,000 units, the unit dives to 70c the investment will only be worth $70,000. However then it recovers up to 80c, then 90c and then $1.10.  Paul will be happy because his patience has been rewarded and now has $110,000.  However Peter only invested $20,000 at $1, then another $20,000 when the market had dipped which acquires him 28,571.43 units at 70c and so on until at the same time as Paul, Peters investment is actually worth $125,373!

If you have a self managed super fund speak to our SMSF accountant Jen at or call directly on 03 5975 0488