Investors should avoid sitting on the sidelines and leaving new super contributions in cash as they run the risk of missing out on continued market performance, according to Tyndall head of retail Craig Hobart.
"We believe there is still value in the market but stock selection is going to be critical," Hobart said.
"The balancing act for investors is between being out of markets (in cash) and missing further market gains, and being fully invested and exposed to any market correction.
"In the current environment a focus on value in markets, and individual stocks within it, makes sense as this is a proven defensive strategy for investors."
Equity funds favouring growth stocks have had a long run but at some time it must end, Hobart said.
"An approach of allocating new investment money into value assets rather than simply re-investing in an existing portfolio asset mix also adds diversification," he said.
As a result, Tyndall believes that value investment is already coming back into favour with investors placing more emphasis on risk adjusted returns.
