Recently, financial markets have taken a dip which is due to the conflict in the Middle East. You may have noticed that your BNZ KiwiSaver Scheme or YouWealth account balance has dropped, leaving you wondering what to do. In times like these, it’s a good idea to step back and look at the bigger picture.

Investing is a long-term game

Periods of volatility are unsettling for investors, but they are part of the journey. In most cases, these kinds of movements shouldn’t influence the decisions you make about investments. Instead of focusing on the turbulence, take a few minutes to check you’re in the right investment fund for you. In many cases, staying the course with your investment could be the best approach.

Here are three things to keep in mind:

1.  Markets tend to recover over time: During uncertain times, it’s easy to focus on short-term volatility rather than long-term investment performance. If you zoom out the lens, you’ll see that markets have shown a tendency to recover over time. Keep in mind that ups and downs are all part of investing.
2. Your investments are diversified: Most BNZ KiwiSaver Scheme and YouWealth funds are designed with diversification in mind. This helps reduce risk and smooth out the ups and downs over time.
3. Potential gains from market recovery: Most members contribute regularly to their investments, including regular KiwiSaver contributions. Market fluctuations can present opportunities for fund managers to acquire assets at lower prices, potentially setting you up for future gains.

Helping to keep you safe

When markets are volatile, scammers will be working hard to play off your emotions. It’s important to stay vigilant. See our website for more information about investment scams.

We also have lots of helpful articles about investing on our ‘Investing for the future’ hub.

You can get more BNZ KiwiSaver Scheme help and support on our website.