Managing the ups and downs of investing

The COVID-19 pandemic has had a major impact on most parts of our lives, and investing is no exception. Interest rates are at record lows as governments try to stimulate their economies. Meanwhile, sharemarkets have been up and down as businesses respond to the new challenges they face.

As with any investment, the value of your ANZ investment fund can go both up and down. These fluctuations are a natural part of investing but they can be unsettling, especially coming after a long period of uninterrupted growth – so here are some ways to help you manage through them.

If you’re investing for the long term, don’t worry about short-term blips - it’s the long-term trend that counts. And history shows that investing in things like shares, bonds and property (as you’re doing through your investment fund) delivers better returns than savings accounts over the long term.

Many investors use an approach called “dollar cost averaging” to take advantage of market fluctuations. It simply means making regular contributions, so that when your fund price is lower you get more units in it for every dollar you invest – in other words, you’re buying the same investment at a lower price!

Making regular contributions to your ANZ investment fund is easy so if it’s something you might want to consider, you can find out how here - Managing your investment.

We offer a range of investment funds designed for different needs, so it’s important to make sure you’re investing in the fund that’s most appropriate for your situation.

For example, if you’re investing for the future and won’t need to access your money for a while, you may want to consider a growth fund, which aims to deliver higher returns (though with more variability in those returns) that over the long term is expected to outperform a more conservative option. If you’re planning to use your money in the near future (for example to buy a home), you may want to choose a more conservative fund because it gives you greater certainty about how much you’ll have when you need to withdraw funds.

To make sure you’re in the right fund for you, talk to your financial adviser.