What is market volatility?
21 March 2025
3
min read
Learn about financial market volatility, how it can affect your super, and what you can do to help manage it.
Your superannuation is an investment in your future. And like all investments, its value can change from day to day. This is because financial markets have ups and downs, which is called market volatility. While it might make you feel worried, ups and downs are a normal part of investment markets and investing.
Market volatility
Ups and downs in prices of financial assets. This affects the value of investments.
What causes markets to move up and down?
Lots of things cause volatility, including company performance and interest rates. Elections, economic data, wars, and natural disasters can also cause prices to rise and fall.
Sometimes events will happen that cause more extreme market volatility. Two recent examples include the 2008 Global Financial Crisis, and in 2020 when the World Health Organisation declared the Covid-19 global pandemic. Financial markets tend not to like uncertainty and so uncertain times can mean big ups and downs in financial markets for a period of time.
How does market volatility affect my super?
This depends on what you've invested your money in. If you've invested your money in shares for example, the value will probably change more than if you'd invested in cash, where the value won't change as much. Generally speaking, investment options that aim for higher returns will typically experience more volatility. This is what we call the balance between risk and expected return.
We help you to compare the risk and expected return of each of our investment options by taking you through the returns over the last 10 years, who it suits, and what level of risk it is. Have a look at our High Growth page as an example.
And if you're not sure about your investment choices, or what's right for you, you can get financial advice.
What if I feel nervous about market volatility?
Ups and downs are a normal part of investing, and all investments carry risk. Here are some things you can do to make sure that you’re comfortable with the volatility you have.
Learn what to think about when investing your super
We cover what to think about and how to choose investments that suit you.
Do your super investments match your risk profile?
When you’re picking investment options, it’s important to think about your own situation.
One important factor is how much investment risk you’re comfortable with. We call this your ‘risk tolerance’ or ‘risk profile.’
Get advice about your investments
You can get advice about your account with us online or over the phone to help you make informed, confident decisions to help achieve your financial goals. Book an appointment for a time that suits you.
Advice about your account with us is included with your membership.1
1. Any advice given is provided by QInvest Limited (ABN 35 063 511 580, AFSL 238274), that is wholly owned by Australian Retirement Trust Pty Ltd (ABN 88 010 720 840, AFSL 228975) as an asset of Australian Retirement Trust (ABN 60 905 115 063). QInvest Limited is a separate legal entity responsible for the financial services it provides. Eligibility conditions apply. Refer to the Financial Services Guide (pdf) for more information.