When markets jump around, it can feel unsettling. Seeing your balance go up and down can be uncomfortable, but volatility is a normal part of investing. Markets move up and down all the time - more so when there is a lot of uncertainty in the world.

Simplicity’s Chief Economist Shamubeel Eaqub and Managing Director Sam Stubbs share their top eight tips for navigating times when markets get bumpy.


Tip 1# Remember that volatility is normal

Shamubeel: Markets move up and down, they always have. Periods like this feel uncomfortable, but they are a normal part of investing. If markets only went up in a straight line, investing would look very different. The key thing to remember is that volatility is expected. It’s not a sign that something has gone wrong.

Tip 2# Don’t let headlines drive your decisions

Shamubeel: News headlines often focus on short-term market moves because they make dramatic stories. But markets move every day, and daily swings rarely tell the full story. Checking your balance too often can increase anxiety without improving decision making. Sometimes the healthiest approach is to zoom out and look at the bigger picture.

Tip 3# Focus on why you’re investing

Sam: Your investment decisions should be based on when you need the money, not what markets did this week. If your KiwiSaver is for retirement decades away, short-term movements matter much less than long-term growth. The biggest mistake we see investors make is letting short-term news change long-term plans.

Tip 4# Pause before making changes

Shamubeel: Market drops can cause anxiety, or make you want to do something immediately. But reacting emotionally is rarely helpful. Instead, take a step back and review your situation calmly. Has your timeframe changed? Are you suddenly needing the money sooner than expected? Has your risk tolerance genuinely changed? If the answer is no, the best decision is often no decision. Also, if you are not sure, seek financial advice.

Tip 5# Be cautious about switching funds during a downturn

Shamubeel: Switching fund types after markets fall can lock in losses. When you sell investments after they have dropped in value those losses crystallise in your account and you may miss out on any future rebound. It’s also worth remembering that switching funds can take time to process, which means you may be temporarily out of the market and could miss movements in either direction.

Tip 6# Remember that diversification is already working for you

Sam: Our KiwiSaver and diversified Investment Funds hold a mix of different investments such as shares, bonds and other assets. These investments respond differently when markets move. If one part of the portfolio drops, another part may hold steady or even rise. Diversification helps soften the impact of short-term market swings and makes the overall ride smoother over time.

Tip 7# Focus on what you can control

Shamubeel: You can’t control markets, but you can control your behaviour. Continuing to contribute regularly, checking that your fund matches your timeframe and risk tolerance, and sticking to a long-term plan are the decisions that matter most. Small, consistent actions usually matter far more than reacting to short-term noise.

Tip 8# If you’re unsure, ask for help

Sam: If you’re close to withdrawing your KiwiSaver, buying your first home, or retiring, it can be helpful to talk to someone. A conversation with an independent financial adviser can help you decide whether you’re in the right fund for your situation. MoneyHub have a list here.

By the way, our investment team and our external manager, DWS, are experienced and have established processes to monitor market conditions and our portfolios, and rebalance them appropriately to track their indices without trying to forecast. We’ve managed through periods of volatility before - it’s our job to keep a steady hand.


Sometimes a little reassurance is all you need. Market volatility can feel uncomfortable, but it’s also just part of investing. The most successful investors aren’t the ones who predict every market movement, they’re the ones who stay calm, stay informed, and stay focused on their long-term goals.