Understanding investment switches: When (and why) to rebalance your portfolio

Market fluctuations and life changes mean your retirement fund’s investment strategy might need tweaking. Here’s how to decide when to switch:

1. What is an investment switch?

This is changing how your pension fund is invested (e.g., moving from high-risk equities to stable income funds).

2. When to consider switching

• Nearing retirement: Shift to lower-risk options like bonds or cash to protect your capital.
• Market volatility: If you’re losing sleep over JSE swings, a more balanced portfolio may suit you.
• Life changes: Marriage, children, or buying a home may mean you need stable growth.

3. How to assess your risk profile

Most funds offer a questionnaire to determine your risk appetite (e.g., “aggressive” vs. “conservative”). Re-take this every 2–3 years.

4. Watch for fees

Some funds charge switch fees (e.g., 0.5% per transaction). Frequent switches can erode returns.

Next steps

Unsure about your risk profile? Book your free 45-minute session with me today using the Contact button above.