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Managing your KiwiSaver account — Volatility: A picture paints a thousand words

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Managing your KiwiSaver account — Volatility: A picture paints a thousand words.

When share markets are volatile like they have been in January and February it can be unsettling and easy to forget that this is a relatively small window of time in comparison to the typically long term nature of investing in share markets.

The following chart shows the returns of the Fisher Funds KiwiSaver Scheme Growth Fund since KiwiSaver started and as you can see, negative markets aren't the norm. As the old saying goes, sometimes a picture paints a thousand words.

While the Growth Fund has delivered an annual average return of 5.9% since inception (October 2007), the following numbers are an important part of the story:

  1. 6 of 8 calendar years have delivered positive returns.
  2. The significant fall in 2008 caused by the global financial crisis was an outlier.
  3. 2008 was followed by a significant rebound in 2009 — the strongest year of performance.

 

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