Investing through market ups and downs

If you’re in the AMP KiwiSaver Scheme or New Zealand Retirement Trust (NZRT) and are worried about the recent market movements and what it means for your investments, read on.

Links to content:

Market ups and downs
Reducing investment risk
Investing in a down market
A plan you can stick to
- FAQs

Watch the video:

AMP Executive Blair Vernon talks about market ups and downs.


Share markets have gotten off to a rocky start this year, with many across the globe experiencing ups and downs, which is not unusual after a period of consistent growth.

What goes down does come up

If you’re in the AMP KiwiSaver Scheme or NZRT, you might have seen your balance drop with the recent market movements, and we know sometimes that can be worrying.

But it’s important to remember that markets go through cycles, and ups and downs are a natural part of investing. What we know from experience is that down markets are followed by up markets.

We saw this in 2020 when global markets dropped because of the impacts of Covid-19 and in a matter of weeks the overall value* of the investments in our AMP Balanced Fund fell 19% (consistent with the performance of most KiwiSaver balanced funds in the market).

But our AMP Balanced Fund bounced back and recovered 26% by the end of the year (so improved 7% from before the market drop).

The upside of down markets

When you put money into an investment, you’re buying things that have value like shares in a company.

When markets drop, you’re buying things at a lower price, and when they recover, those things are worth more, which should have a positive impact on your investment.

In other words, making regular contributions over time if you are able to, regardless of market conditions, is the best way to help grow your investment.

Variety is the spice of investment

One of the many benefits of being in the AMP KiwiSaver Scheme or NZRT is that your savings are typically invested in all sorts of assets, sectors and markets all around the world.

This is called diversification, which helps to protect your investment, as while the value of some assets might drop, the value of others may increase.

When a plan comes together

Based on the FMA’s 2021 KiwiSaver Annual Report, more than half of people in KiwiSaver are 40 years of age or younger. That means they have at least another 25 years until they reach the age for a retirement withdrawal.

What’s most important, whether you have two or 25 years to go, is that you have a plan that you can stick to, to help you achieve your goals, so you can enjoy the retirement you want.

If you’re worried or not sure what to do, or just want to check your AMP KiwiSaver Scheme or NZRT setup is right for you, we’re here to help. You can get in touch by calling 0800 267 5494 or email us at

Market movement FAQs

Why are sharemarkets/balances going down so much?

Right now, financial markets around the world are grappling with many issues – the largest being high inflation which is impacting prices everywhere. Rapidly rising food and energy costs are driving this.

Combined with a global pandemic and the ongoing war in Eastern Europe it is no surprise that this creates uncertainty. Markets do not generally like uncertainty.

Read our regular updates here: Market commentary | AMP New Zealand

I am worried about what I’m hearing on the news…

We don’t believe focusing on news or media stories about what markets have done is an effective way to make smart financial decisions. News and media are commonly sensationalised to make people take notice.

It is also backward looking. Investing or saving is like driving a car. You drive your car looking out the windscreen, with regular checks in your rear-view mirror. You don’t drive your car solely with your rear-view mirror. Focusing on media reports is like driving solely with the rear-view mirror…

Also, you usually only hear about markets or impacts on KiwiSaver in the media when there is bad news. It is unlikely the lead story on the news tonight will be that global markets are all up today.

What should I do?

If you are worried about how the market volatility and returns are impacting your investment or savings goals, then you should talk to a financial adviser before making any decisions. An adviser can help make sure you are in the right funds for your goals, plans and appetite for risk.

If you have the right settings for your goals and plans, then you should focus on the longer-term and let the markets do what markets do.

* The overall value of the investments is based on the unit price of the fund.