Should I change my investment option when markets are volatile?

If your investment option is performing below expectations at any time you may be tempted to switch to an option that is performing better. But should you do this?

There are a lot of factors to consider before changing your investment option. Taking a short-term outlook with a long-term investment such as super is generally not in your best interests. And many people make the mistake of letting short-term market returns influence their long-term investment strategy.

While you may feel more comfortable in the short term by switching, over the long term, changing your investment option may result in lower investment returns, and therefore, either lower growth of your savings or a reduced length in the time your savings may last once you've retired.

There are a lot of factors to consider before changing your investment option. And the best thing to do is ensure you're comfortable with the risks associated with your chosen investment option from the outset, and stick to your original plan.

If you would like to meet with one of VicSuper's superannuation advisers to discuss your investment option and determine the best option for your risk and return profile, please phone 1300 366 216 to make an appointment.