Investing and risk
What are investment options?
Most superannuation funds allow you to choose how your
superannuation is invested by giving you investment options. Each
investment option has its own investment objective and strategy to
achieve this objective. Different investment options may invest in
different types of assets, such as cash, fixed interest, property
or shares, or a combination of these. Many superannuation funds
will invest in these assets through a managed fund rather than
investing directly in the assets themselves.
Investing and risk
History shows that all investment options have different returns
and levels of risk to suit a variety of investors and economic
climates. Risk is mainly related to the returns you earn on your
superannuation. Generally, investments that give you the potential
to earn higher returns in the long term are more likely to see
negative returns in the short term. If you're not too concerned
about short-term falls in the value of your superannuation, then a
higher risk/higher return investment option may be for you.
However, if you don't want to risk lower short-term returns, than
an investment option with lower volatility may be the way to
go.
How do I choose my investment option(s)?
The right investment choice for you will depend on three
things:
- Your investment timeframe.
- How much you need to save to retire comfortably.
- How much risk you prefer to take.
To make this easier, we've developed Super360°, our free online
super advice tool which removes the guesswork and helps you choose
the investment option(s) best suited to you. All you need to do is
answer a few quick questions and Super360° will combine your
answers with your current account details to produce a free
Statement of Advice.
To get started with Super360°, simply log in or register for Member
Access now.