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Market volatility

Education HUB article

5 minute read

Market volatility explained

During periods of market downturn, it's understandable you may be concerned about the value of your super or other investments you may hold.

While disruptions can be unwelcome, falls within financial markets are not uncommon. But market volatility is not as scary as you might think.

What is market volatility?

When it comes to investing, the term volatility is used to refer to the changeable price range of a security. For example, if the price of a security is subject to sharp and unpredictable rises and falls, it is often considered to be higher in volatility.

Meanwhile, securities with a relatively stable price range are generally thought of as being lower in volatility.

Planning for volatility

It can be alarming when markets dip. Especially when downturns result from significant events like the Global Financial Crisis (GFC) or the COVID-19 pandemic. But it's important to remember that periods of volatility are normal.

That said, a downturn is not always bad news. Yes, a volatile market can increase your investment risk. But volatility can also present investment openings.

Markets usually recover from downturns. And during periods of recovery, investment opportunities arise. Investors can access assets at a lower price point.

As a result, well-managed investments (including super) can take advantage of volatility.

Managing your super

Whether you consider yourself an investing pro or apprentice, if you have super, that money is being invested to fund your retirement.

With this in mind, it’s important to put market movements into context. Your super is a long-term investment and generally, is only accessed when you retire. For many, this means there should be enough time to account for downturns and recover from them.

If you are nearing retirement, you can consider reviewing your investment strategy. Understanding your risk tolerance and what strategies will suit you at various stages of life can help to get the most out of your super.

Bendigo SmartStart Super

The team at Bendigo SmartStart Super commits to helping you maximise your super. The fund is managed by a team of highly experienced professionals, who continuously monitor markets and make informed decisions to help you grow your super.

If you have any questions, you can call us on 1800 033 426 or email us at

For more helpful articles, visit the Education HUB.

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Things you should know

Sandhurst Trustees Limited

Sandhurst Trustees Limited ABN 16 004 030 737 AFSL 237906 (Sandhurst) is a wholly owned subsidiary of Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879. Each of these companies receive remuneration on the issue of the product or service they provide. Sandhurst is the responsible entity and issuer of the managed funds available on this website, and is also the trustee and issuer of the Bendigo superannuation products. Investments in these products are not deposits with, guaranteed by, or liabilities of Bendigo and Adelaide Bank and are subject to normal investment risk, including possible delays in repayment and loss of income and capital invested. Before making an investment decision in relation to one of these products you should consider your situation and read the relevant Product Disclosure Statement available on this site.

Sandhurst is the issuer of the commercial lending products and the provider of any traditional trustee services available on this website. The Bendigo Funeral Bond (“the Bond”) is an investment product issued by Australian Friendly Society Limited (“the Society”), ABN 29 087 648 851 AFSL 247028, with benefits provided by the Society’s Funeral Benefit Fund established under Schedule 1, Rule E of its constitution and administered by Sandhurst. The Travel Protection Plan is issued by AIA Australia Limited ABN 79 004 837 861 AFSL 230043. The Society is associated with the Bank and its related entities. Neither the Bank nor any of its related entities guarantee the repayment of capital invested or the investment performance of the Bond. Information is correct at the date of this document and is subject to change.

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