Superannuation funds appear to be staging a strong recovery after a series of losses spurred by global market turmoil.

Research house SuperRatings estimates that the median balanced option delivered a return of 3.1 per cent in July as funds turned a string of losses.

The median growth option increased its returns by an estimated 3.5 per cent, while the median capital stable option also delivered a rise of 1.9 per cent.

The recovery was largely attributed to bullish Australian and global equity markets, most notably US IT stocks.

The Reserve Bank also announced its fourth consecutive rate rise earlier this month, increasing the cash rate to 1.85 per cent in the period in a bid to quell inflation – calming the markets along the way.

SuperRatings executive director Kirby Rappell said people have been concerned about the ups and downs in their super account balances, but said he had been emphasising the importance of focusing on the long term.

“This year we have seen the ongoing challenges of COVID-19 coupled with a challenging global economic environment driving the volatility,” Mr Rappell said.

“We continue to highlight the importance of setting your long-term investment strategy and the performance over the last month shows the perils of trying to time the market, with members who may have switched to more conservative investment options missing out on the bounce back,” he said.

Mr Rappell said it was pleasing to see a strong recovery over the month of July, demonstrating the resilience of super funds and their ability to navigate the uncertain investment environment.

“While we are likely to see bumps ahead, the long-term trend for super funds has remained strong and steady,” he said.