The Power of Staying Invested: Time In The Market vs Time The Market
For KiwiSaver investors, no one wants to see their KiwiSaver balance decline. It is understandable that members can feel uneasy on "staying the course" as their balances shrink during the period of volatility. However, rushing for the switch of funds when the market goes down can actually slow long-term portfolio growth.
How KiwiSaver Grows By The Power of Compounding?
For KiwiSaver to grow, you need to invest in growth assets. For growth assets to grow, the most important factor is time. The longer you invest, the more reliable a capital gain is achieved. This means – so long as you have the right timeframe in mind – you are more confident to own growth assets.
What does the OCR change mean for your mortgage?
Generally speaking, a higher OCR means higher mortgage interest rates. With the OCR lift, mortgage borrower will usually have to pay higher interest to banks, as banks will pass on at least some of the OCR increase, if not all, to mortgage borrowers.