When you check your KiwiSaver balance, it’s natural to notice the ups and downs — especially early in the year when markets can feel a little noisy.

January was full of headlines: interest rates, inflation, global events, company earnings. Some days markets rise, other days they dip. It can feel unsettling — but these short-term movements are a normal part of investing, not a sign that something has gone wrong.

Markets react quickly — but don’t always move for long

Like any long journey, there can be rough patches along the way. Markets often react quickly to news — a comment from a central bank, a political event overseas, or a batch of company results — even though the bigger picture hasn’t shifted much at all.

Over January, markets have been digesting:

• Interest rate expectations, as investors debate when rates might eventually come down
• Company earnings, which can move share prices day to day
• Global uncertainty, which can cause short bursts of caution or confidence

These forces can push markets around in the short term — but they don’t usually change long-term outcomes on their own.

Why reacting can do more harm than good

When markets wobble, it’s natural to feel like you should “do something” — such as moving between funds or waiting until things feel calmer. But jumping in and out of markets can actually work against you.

Markets don’t move in a straight line. Some of the strongest days often come soon after the weakest ones, and stepping out at the wrong time can mean missing those rebounds.

While short-term movements are often driven by emotion and headlines, long-term returns are shaped by a few simple fundamentals:

• Staying invested through different market conditions
• Diversification — having your money spread across regions, sectors, and styles
• Time in the market, allowing compounding to do its work

A steadier journey matters more than a smooth week

The Aurora KiwiSaver Scheme is built with long-term investors in mind. Diversified portfolios and multiple investment styles help smooth the journey over time — not eliminate bumps, but make them easier to stay with.

The goal isn’t to avoid every dip. It’s to help you stay confident, invested, and focused on where you’re heading.

Keep the long view in focus

Short-term market movements are part of investing — and they always will be. What matters most is having a plan that fits your goals, your time frame, and your comfort with risk.

If you’re ever unsure whether your current investment option still feels right, that’s a great moment to talk it through — not because markets moved this month, but because your life or goals may have changed.

As part of the Aurora KiwiSaver Scheme, you have access to expert KiwiSaver advice to help you sense-check your options, understand what level of risk suits you, and stay confident through market ups and downs.

Want to talk things through?

Talk to your Adviser today or get in touch with the Aurora Client Care Team

0800 242 023
hello@aurora.co.nz