In a year which saw a fair bit of volatility, it is expected that the median Balanced super fund returned around 8.5% for the year to the end of June. I think most of us would have taken that if it had been offered 12 months ago!
However, the important thing isn’t the last 12 months return, or the next for that matter, it is the average over the last 30 years that matters. Markets will constantly fluctuate, as we can see from the below, but history tells us there are many more good years than bad.
The trick is to turn down the “noise” and invest for the long term with an eye on the bigger picture. We all like to think we can “time the market”, but for the vast majority of us, the simple fact is we can’t.
Table courtesy of Financial Newswire
Robert