Super funds fall to 3 percent, giving 2016 a not-so-good start

The superannuation funds have witnessed a significant fall in value by around 2.5 percent to 3 percent, an independent study revealed.

SuperRatings said that it was the short-term volatility that affected the funds due to the increasing local and global financial challenges. “The 2.5 percent is a relatively steep drop but it’s not unprecedented by any stretch of the imagination, it may be more so in some of the listed markets where we’ve had a challenging start to the year in the ASX in particular,” SuperRatings’ general manager of research Kirby Rappell told the ABC News.

The superannuation funds in Australia have promoted downfall of ASX index by 7 percent in 2016. Consultancy firm Chant West conducted a new study where it was found that super balances fell with an average of 2.5 percent on the first six days of 2016. The Chinese economic crisis is affecting the global share market, giving a not-so-good beginning of the New Year. The fall in the value of oil has already upset the investors.

“Over the short term, we are seeing that volatility that’s really re-emerged since last June and that’s causing some concern for some people no doubt,” Rappell said. “However, I do think it does need to be put into context of the strong returns we’ve seen through most people’s super since the GFC, even going back to 1992.”

The falling value has affected the working Aussies with in balanced funds the most. This seems applicable for people between 30 and 45. The funds have outperformed the market with 5 percent returns. In addition, conservative funds have returned 3.5 percent in 2015. ASX closed in 2015 with a fall of 2.4 percent.

Since 2011, four years of positive returns have been experienced on the superannuation funds.