Diversification – Why it matters for long-term investing
8 May 2026
Diversification – Why it matters for long-term investing:
NGS Super’s Chief Investment Officer Ben Squires explains.
A simple way to understand investing is to think about a forest. A forest doesn’t rely on just one type of tree, one water source, or one perfect season. It survives because it’s diverse. Different plants respond differently to heat, wind, drought, and storms. This diversity helps the forest stay strong over time.
Investing works in a similar way.
At NGS Super, portfolios are built with the understanding that markets, like nature, go through different conditions.
Why diversification matters
When global markets face uncertainty, investors can become concerned, especially when markets become volatile. In response, they may shift their investments towards assets perceived as safe havens, such as gold or cash. This is where diversification becomes particularly important.
That is why portfolios include assets such as commodities, gold, and other defensive investments. These assets may not lead performance all the time, but they can help support the portfolio during more challenging periods.
A long-term approach
Nature shows us that resilience does not come from avoiding change, but from being prepared for it.
The same idea applies to long-term investing.
Superannuation is designed to grow over many years. Periods of market volatility are normal, and history shows that markets often recover once uncertainty settles. In fact, some of the strongest market recovery days can occur during times when investors feel most uncomfortable.
For this reason, reacting quickly to short-term market movements, such as switching to cash after markets have already fallen, can harm long-term investment outcomes.
Staying focused on the long term
The role of NGS Super is to remain disciplined, diversified, and focused on long-term outcomes for members.
Rather than reacting to every headline or short-term market change, the focus remains on ensuring the portfolio is well-positioned across a wide range of possible economic conditions.
Advice could help you feel more confident
You don’t need to be a super expert to feel confident about your super. Our advice options give you access to clear, practical guidance based on your needs and stage of life.
You can also try the complimentary NGS Virtual Adviser, our interactive online advice tool available on the NGS Website.
Want to talk to someone?
An NGS Super Specialist can help answer your general questions about super, and are available by phone or video. These chats are complimentary for members and non-members.
This information is general information only and does not take into account your objectives, financial situation or needs. Before acting on this information, or making an investment decision, consider whether it is appropriate to you and read our Product Disclosure Statements and Target Market Determinations. You should also consider obtaining financial, taxation and/or legal advice tailored to your personal circumstances before making a decision. Financial products are issued by NGS Super Pty Ltd ABN 46 003 491 487 AFSL 233 154.
