10 Best Superannuation Investment Options in Australia
Choose from a range of super investment options, each with a different mix of growth and stability. These options are designed for long term returns, diversification and risk management to suit your financial goals.
The portfolios invest in growth and defensive assets, with a focus on unlisted investments and global diversification. ESG principles are also applied to ensure sustainable and responsible investing for long term success.
Returns are based on historical data, showing what your super balance could be by 2025. These options aim to balance risk and maximise long term growth.
Hostplus Balanced (MySuper)
Hostplus Balanced (MySuper) has set the benchmark in the super industry, delivering strong performance and innovative investment strategies.
8.3% p.a. over the past 10 years to 30 June 2024. Because it’s a balance of growth and stability.
Why Hostplus Balanced Option is the Best
Balanced (MySuper) has been the best in super. 10 years 8.3% p.a. to 30 June 2024. This is on top of a 7.60% return for the 2023-2024 financial year. These results show Hostplus can ride out market volatility and deliver long term growth.
SuperRatings has also ranked the Balanced option number one over 10 and 20 years. This is a big endorsement of its performance and value to members. It’s a top investment choice.
The Hostplus Secret
The key to the Balanced option’s success is its investment strategy. Optimise net returns with diversification and a growth bias.
This approach captures long term market opportunities and smooths out short term volatility.
How Hostplus Allocated Its Portfolio
The Balanced option portfolio is split between growth and defensive assets for a balance of risk and return:
Growth Assets (75%): A large chunk of the portfolio is invested in equities, private equity, infrastructure and property. These asset classes are the drivers of long term growth.
Defensive Assets (25%): Fixed income and cash investments are the defensive foundation, providing stability and liquidity to counter market risks.
Hostplus also has high diversification across asset classes and geographies to add to its resilience. This reduces risk and unlocks opportunities across different economic cycles and regions.
One of the key features of the Balanced option is its large allocation to unlisted assets. Over 50% of the portfolio is in unlisted property, infrastructure, private equity and venture capital. These assets offer stability and potential for higher returns in market volatility.
What will you have by 2025?
Based on past performance, an investment of 100,000 AUD in the Balanced option would be around 108,300 AUD by 2025.
This is based on an 8.3% p.a. return. It shows the power of compounding. But actual results may vary due to market, asset and economic conditions.
How Hostplus Manages Risk
Hostplus has robust risk management to protect its members’ investments.
These include:
Regular Portfolio Reviews: Ongoing monitoring of asset performance and market trends to make informed decisions.
Strategic Asset Allocation: Adjusting the balance between growth and defensive assets to match changing market conditions.
Diversification: Spreading investments across different asset classes, sectors and geographies to reduce exposure to specific risks.
Is Hostplus right for you?
While the Balanced option’s performance is impressive, members need to consider their individual financial goals, risk tolerance and investment timeframe.
Superannuation is a long term game and while past performance is guidance, it’s no guarantee of future results.
Talk to a financial planner to get personal advice to suit your circumstances and goals.
In summary, Hostplus’s Balanced (MySuper) option is a combination of strategic asset allocation and diversification.
It’s consistent performance and active risk management makes it a good choice for members looking for balanced growth in their super.
Australian Retirement Trust – Super Savings Balanced
The Australian Retirement Trust (ART) Super Savings Balanced option is steady growth and risk management, for super. It’s member centric and transparent.
Super Savings Balanced Performance
Super Savings Balanced option performance
Average Return: Over the 10 years to June 2024, the option returned 7.8%. This shows its ability to deliver value to members and its asset allocation is strong in volatile markets.
2023-2024 Financial Year: 7.30% for the 2023-2024 financial year. This shows the fund’s ability to adapt to a changing market and its long term investment performance.
ART’s Investment Foundation
The Super Savings Balanced option’s success is due to its well constructed, diversified portfolio to meet member expectations. By allocating assets to growth and managing risk, ART delivers sustainable outcomes for members.
Growth Assets (70%): Equities, property, infrastructure and private equity to drive long term wealth creation and capture growth in different sectors.
Defensive Assets (30%): Bonds, fixed income and cash to provide a buffer against market volatility and keep the portfolio stable in uncertain economic conditions.
Why Diversification is Important in ART’s Strategy
ART takes a diversified approach to investment to get the best performance and manage risk. The strategy gets broad exposure to different asset classes and minimises exposure to market movements.
Global Reach: ART’s investment is across domestic and international markets to get exposure to growth opportunities globally, to capture emerging trends and markets for better returns.
Unlisted Assets: 40% of ART’s portfolio is in unlisted property, infrastructure and private equity. These assets have high growth potential and provides stability and resilience in uncertain economic conditions.
ESG: ART integrates environmental, social and governance (ESG) considerations into its investment strategy to deliver sustainable outcomes that align with long term financial performance and broader social and environmental goals.
Projected Growth by 2025
With a 7.8% historical return, a 100,000 AUD investment in the Super Savings Balanced option could be 107,800 AUD by 2025. Actual results may vary.
ART’s Risk Management
ART has a robust risk management framework to protect members’ investments. It adapts its strategies to changing market conditions and member needs.
Portfolio Rebalancing: ART reviews and adjusts the portfolio regularly to stay responsive to market changes. So the portfolio remains aligned to member goals, minimises risk and maximises returns.
Risk Aware Allocation: ART balances growth and defensive assets to reduce exposure to market volatility and provide a stable investment journey while seeking long term growth for members.
ESG Governance: ART has strict ESG criteria in its strategy to proactively manage environmental, social and governance risks. This protects investments and supports responsible investment practices.
Is Super Savings Balanced for You?
The Super Savings Balanced option provides a balance of growth and stability for those with specific goals, risk tolerance and retirement timeframes. Talk to a financial advisor.
AustralianSuper – Balanced
The AustralianSuper Balanced option is popular, provides growth with managed risk. For members looking for long term growth and financial security it delivers strong performance through transparent and strategic management.
Balanced Highlights
The Balanced option has consistently performed well, showing off the portfolio design and risk management strategies at work to deliver steady and sustainable returns to members.
Average Return: Over the 10 years to 30 June 2024 the Balanced option returned 8.1% per annum.
2023-2024 Financial Year: The Balanced option returned 7.50% for the financial year.
The Secret to AustralianSuper’s Success
AustralianSuper’s Balanced option works through a diversified investment portfolio designed to deliver long term growth and manage risk and align to member goals.
Growth Assets (70%): The portfolio has a large allocation to equities, property, infrastructure and private equity to drive capital growth and long term growth through diversified and high growth investments.
Defensive Assets (30%): Bonds, fixed income and cash provide stability and acts as a hedge against economic uncertainty and provides steady returns and reduces risk in volatile market conditions.
Why Diversification is Key in AustralianSuper’s Strategy
AustralianSuper diversifies to maximise returns and minimise risk. The Balanced option takes advantage of opportunities across different sectors and markets to deliver growth.
Global: The portfolio is invested in both domestic and international markets to get exposure to a broad range of growth opportunities and market trends.
Unlisted: 35% of the portfolio is in unlisted property, infrastructure and private equity to provide resilience in economic uncertainty.
ESG: The Balanced option has an ESG focus to align investment goals to sustainability and long term outcomes, to deliver ethical and responsible investment for members.
Growth by 2025 for Members
With an average return of 8.1%, a 100,000 AUD investment in the Balanced option could grow to 108,100 AUD by 2025. Actual returns may vary due to market movements.
AustralianSuper’s Risk Management
AustralianSuper uses risk management strategies to protect members’ investments and maximise returns to deliver protection and growth in all market conditions for best performance.
Portfolio Adjustments: The fund reviews the portfolio regularly to respond to market changes, to align to member goals and to react to economic changes to protect and enhance returns.
Balanced: A mix of growth and defensive assets to reduce risk during market downturns, to provide stability and sustainable performance so members’ investments can ride out economic uncertainty.
Sustainable: AustralianSuper incorporates ESG to reduce environmental and governance risk, to add stability and sustainability and align to member values for long term growth and responsible investment.
Is the Balanced option for you?
The Balanced option is for members looking for steady growth and long term security in their super journey. It’s for members with moderate risk and a long term investment horizon.
UniSuper – Balanced
UniSuper’s Balanced option delivers consistent returns, sustainable growth and strategic asset allocation. It’s focused on long term value creation to deliver best performance and align to member goals and needs.
Balanced Performance
The Balanced option has a long history of strong returns, it’s a reliable and trusted option for UniSuper members looking for stable and consistent growth.
Average Annual Return: Over the 10 years to June 30 2024 this option returned 8.0% per annum.
2023-2024 Financial Year: A 7.40% return for the year shows UniSuper can adapt to changing market conditions and deliver growth in a volatile environment.
The secret to UniSuper’s success
The Balanced option’s success is based on its disciplined approach to diversification and risk management. The portfolio is balanced between growth and stability.
Growth Assets (70%): The option invests in equities, property, infrastructure and private equity to drive growth and capture opportunities in growth sectors.
Defensive Assets (30%): Fixed income and cash to provide stability and a return in uncertain times.
Why diversification is key in UniSuper’s approach
UniSuper uses a diversified investment approach, combining domestic and international assets to deliver returns, reduce risk and build a resilient portfolio to deliver stability and growth in changing market conditions.
Global exposure: The fund invests in domestic and international markets so members can access opportunities in multiple and emerging economies.
Unlisted Assets: 38% of the portfolio is in unlisted property, infrastructure and private equity for stability and growth.
ESG Integration: UniSuper’s ESG approach supports ethical investing and long term financial outcomes.
Projected growth by 2025
A 100,000 AUD Balanced option investment could grow to 108,000 AUD by 2025, but actual results may vary due to market conditions, asset performance and economic factors.
UniSuper’s Risk Management
The Balanced option uses risk management strategies to protect members from volatility and optimise returns through a diversified portfolio for long term stability and growth.
Strategic Asset Allocation: The portfolio is rebalanced regularly to adapt to changing market conditions to meet member needs and investment goals for growth.
Balanced Portfolio: By having a mix of growth and defensive assets the portfolio reduces the impact of market noise and delivers stability and returns over the long term.
ESG Governance: UniSuper embeds ESG into its investment process, managing risks and responsible investing to meet environmental, social and governance goals.
Is Balanced right for you?
The UniSuper Balanced option delivers growth with risk mitigation, it’s suitable for members with moderate risk tolerance and long term retirement goals. Speak to a financial advisor to find out more.
Cbus – Growth (MySuper)
Cbus Growth (MySuper) is for long term growth through strategic asset allocation and strong governance, stability, performance and sustainability to deliver returns and member satisfaction for long term success.
Growth (MySuper) Performance
Cbus Growth (MySuper) has consistently performed well, delivering long term financial security and growth for its members while managing risk through a diversified investment approach.
Average Annual Return: Over the 10 years to June 30 2024 the Growth (MySuper) option returned 8%. This is a result of the fund’s robustness and ability to adapt to changing market conditions.
2023-2024 Financial Year: 7.4% return, the Growth (MySuper) option showed it can navigate market conditions and deliver progress towards member goals.
Cbus’ Investment Foundation
The Growth (MySuper) option is built on a diversified and carefully selected portfolio to deliver growth with risk mitigation. The asset allocation balances long term growth potential and stability.
Growth Assets (76%): The portfolio has a large allocation to equities, property and infrastructure for long term capital growth and to benefit from high growth opportunities across sectors.
Defensive Assets (24%): The portfolio has fixed income and cash to provide stability and protection from market volatility to deliver consistent performance in uncertain and fluctuating markets.
Why Diversification is Important
Cbus has a global diversified approach, balancing risk and return. This helps to build resilience and deliver growth even in times of economic uncertainty so members can have long term stability.
Global: The portfolio is invested in both international and domestic markets, it has exposure to high growth industries and emerging global trends to diversify and grow across economies.
Unlisted Assets: With over 30% of the portfolio in unlisted property, infrastructure and private equity the Growth (MySuper) option has exposure to resilient and potentially high yielding assets.
ESG: Cbus embeds ESG, so investments deliver financial returns while promoting sustainable and ethical practices, aligned to member and long term societal goals.
Projected growth for members by 2025
With a 10 year average return of 8.0% a 100,000 AUD investment in the Growth (MySuper) option could grow to 108,000 AUD by 2025. Actual returns will depend on market conditions and asset performance.
Cbus Risk Management
Cbus has a proactive risk management approach, protecting members’ investments while growing, to deliver stability and reduce exposure to market volatility for long term financial security.
Portfolio Adjustments: The portfolio is reviewed and rebalanced regularly to stay relevant to changing market conditions and member needs to maintain the right balance for growth and risk management.
Balanced Allocation: By having the right balance between growth and defensive assets the fund minimises risk and delivers sustainable returns.
ESG Oversight: ESG criteria is strictly applied to investment decisions to reduce risk and deliver long term success so members’ investments are aligned to responsible practices and growth objectives.
Is Growth (MySuper) for you?
Growth (MySuper) is suitable for members who want a balanced approach to long term growth and stability. It’s for members with a medium to high risk tolerance and long term horizon.
Aware Super – Growth
Aware Super Growth is long term growth with a strong approach, medium to high risk and sustainable. It’s for individuals who want to grow and be responsible.
Growth Performance
Aware Super Growth has consistently delivered strong performance, proof of its commitment to deliver value and steady returns to its members with risk management.
Average Annual Return: Over the 10 years to June 30, 2024 the Growth option returned 8.2%. This is strong evidence of its ability to grow member wealth over time.
2023-2024 Financial Year: The Growth option returned 7.6% for the 2023-2024 financial year. This shows its ability to adapt to changing market conditions.
The secret to Aware Super’s success
The Growth option has a strategic and diversified investment portfolio to deliver returns while managing risk. It has the right balance of high growth and defensive assets:
Growth Assets (85%): The portfolio is heavy on equities, real assets and private markets, focused on long term capital growth. This allocation is designed to capture high growth opportunities and deliver big returns.
Defensive Assets (15%): Fixed income, cash and alternative assets provide stability, to cushion the portfolio from volatility and to be resilient in tough market conditions, to manage risk more evenly.
Why diversification matters in Aware Super’s approach
The Growth option is diversified, with broad exposure to multiple asset classes and geographies. This delivers performance and manages risk.
Global Diversification: By investing in international and domestic markets the portfolio gets access to many growth opportunities and reduces reliance on any one market.
Unlisted Assets: 35% of the portfolio is invested in unlisted assets like infrastructure, property and private equity to deliver stability and growth.
ESG Integration: Aware Super has ESG embedded in its investment approach so returns are aligned to long term sustainability and positive social outcome.
Growth for members by 2025
Based on a 8.2% historical return a 100,000 AUD investment in the Growth option could grow to 108,200 AUD by 2025. However outcomes may vary.
Aware Super’s Risk Management
Aware Super has a robust risk management approach to protect members’ investments, to deliver stable returns and grow and adapt to changing market conditions for long term financial security.
Active Portfolio Management: Regular reviews and adjustments to the portfolio to keep it responsive to market conditions, aligned to members’ goals and to grow and manage risk.
Balanced Approach: A balanced mix of growth and defensive assets reduces risk and maximises returns, for long term financial security.
ESG Disciplined: Aware Super applies strict ESG standards to reduce risk from environmental, social and governance factors, for member benefit.
Is the Aware Super Growth option for you?
The Aware Super Growth option is for members seeking long term growth with medium to high risk tolerance. It’s for members who put sustainability alongside their goals.
Sunsuper – Balanced
The Sunsuper Balanced option combines growth potential with risk management, for steady long term performance. It’s for those who want a balanced mix of growth and stability for their super.
Balanced Highlights
Sunsuper Balanced adds value through strategic investments, focused on long term growth and stability, so members’ super is strong and resilient in changing market conditions.
Average Return: Over the 10 years to 30 June 2024 Sunsuper Balanced returned 7.6%. This is a long term growth result while managing risk.
2023-2024 Financial Year: Sunsuper Balanced returned 7.2% for the 2023-2024 financial year, showing it can adapt to changing market conditions and deliver results.
What underpins Sunsuper’s success
Sunsuper Balanced is built on its diversified portfolio, designed to meet members’ needs, for a balanced approach to long term growth and security.
Growth Assets: 70% of the portfolio, equities, property and infrastructure, for high growth and to capture opportunities globally to boost long term returns.
Defensive Assets (30%): Bonds, fixed income and cash to provide a hedge against market volatility and add stability to the portfolio.
Why diversification is key to Sunsuper’s approach
Diversification is at the heart of Sunsuper Balanced’s strategy, to deliver consistent returns while managing market risk and reducing exposure to volatility across asset classes.
Global Exposure: Sunsuper invests globally, both domestically and internationally, to access growth opportunities and not be reliant on any one region for balanced growth.
Unlisted Assets: 30% of the portfolio is in unlisted assets like infrastructure and private equity, for stability and resilience in market volatility.
ESG Integration: Sunsuper integrates sustainable practices by incorporating ESG into its investment approach, to align financial performance with social and environmental outcomes.
What members can expect by 2025
With a 7.6% historical return, a 100,000 AUD investment in the Sunsuper Balanced option could be 107,600 AUD by 2025. Actual returns will depend on market and asset performance.
Sunsuper’s Risk Management
Sunsuper has a robust risk management framework to protect member investments and maximise returns, so assets are managed to withstand market volatility and long term growth.
Dynamic Portfolio Adjustments: Regularly reviewed and updated to adapt to changing market conditions, to get the best performance while managing risk.
Balanced Asset Allocation: Sunsuper balances growth and defensive assets to reduce market volatility and get consistent returns.
ESG-Based Risk Mitigation: ESG-Based Risk Mitigation: Sunsuper actively manages risks related to environmental, social and governance factors by applying strict ESG standards.
Is Sunsuper Balanced for you?
Sunsuper Balanced is for members who want a balanced approach to growth and security, medium risk tolerance and long term retirement goals. Financial advice can help you work out if this option suits you.
Rest – Core Strategy
Rest’s Core Strategy option delivers steady growth with risk management. Balanced growth and stability for members with various financial goals and retirement timeframes.
Core Strategy performed well, with a diversified asset allocation and forward thinking investment approach to provide long term stability and growth for members’ financial security.
Average Annual Return: Over the 10 years to 2 July 2024, Core Strategy returned 8.29%. This shows it can deliver long term growth.
2023-2024 Financial Year: 7.4% return, Core Strategy navigated the tough market conditions and delivered for members’ long term financial security.
What underpins Rest’s success
Core Strategy’s success is built on its diversified and structured portfolio, designed to deliver best long term outcomes, balancing risk and growth to meet members’ financial goals.
Growth Assets (75%): Rest invests in high growth investments in equities, property and infrastructure to get strong returns over time, aligned to members’ wealth creation goals.
Defensive Assets (25%): Core Strategy includes bonds, fixed interest and cash, for stability and a buffer against market volatility, to protect investments in uncertain economic conditions.
Why diversification is at the heart of Rest’s strategy
Diversification is the key to reducing risk and getting the best returns in the Core Strategy portfolio, to get a balanced approach to investing that adapts to market conditions and long term financial goals.
Broad Market Exposure: Rest invests in both domestic and international markets, to get access to many growth opportunities. This reduces reliance on any one market and minimises regional risk.
Unlisted Investments: About 30% of the portfolio is unlisted, private equity and infrastructure. These investments add resilience and stability especially in uncertain economic conditions.
ESG Integration: Rest integrates ESG considerations into its investment decisions to deliver sustainability and long term member outcomes and positive social and environmental impacts.
Projected growth for members by 2025
Based on its 7.7% average return, a 100,000 AUD investment in the Core Strategy option could grow to 107,700 AUD by 2025. Actual results may vary based on market conditions and asset changes.
Risk management in Rest Core Strategy
Rest has a robust risk management framework to protect members’ investments and maximise returns. This means stability and security even in volatile markets for long term growth.
Active Portfolio Management: Rest reviews and adjusts the portfolio to stay with the market trends, reduce risk and get the best performance.
Balanced Allocation: Core Strategy combines high growth and defensive assets, reduces volatility and gets stable returns, makes it a low risk investment for long term financial goals.
Proactive ESG oversight: By applying tough ESG criteria, Rest identifies and manages the risks associated with environmental, social and governance factors to protect members’ interests and promote responsible practices.
Is Core Strategy for you?
Core Strategy – balanced growth
Core Strategy is a balanced mix of growth and security for members with medium to long term goals and moderate risk tolerance. A financial advisor can tailor it to your needs.
HESTA – Balanced Growth
Balanced Growth is designed to get steady returns through a mix of growth and defensive strategies. For members looking to build long term wealth and a stable investment journey.
Balanced Growth performance
HESTA’s Balanced Growth option is committed to delivering sustainable returns through strategic planning and risk management to achieve long term financial stability and growth for members.
Average Return: Over the 10 years to June 2024, Balanced Growth returned 7.6%. This shows it can balance growth and resilience.
2023-2024 Financial Year: Balanced Growth returned 7.2% for the 2023-2024 financial year, it’s adaptable to changing market conditions and focused on long term outcomes.
HESTA’s Investment Strategy foundation
Balanced Growth benefits from HESTA’s investment framework and diversification to stay with members’ expectations.
Growth Assets (75%): HESTA invests in equities, infrastructure, property and private equity to get maximum long term capital growth.
Defensive Assets (25%): Bonds, fixed income and cash to protect against market downturns and stabilise the portfolio during volatile times.
Why diversification is important in Balanced Growth
Diversification is the key to HESTA’s Balanced Growth option, reducing risk and getting opportunities across different investments to deliver stability and balanced growth for members looking for long term financial success.
Global exposure: HESTA invests in domestic and international markets so members get growth opportunities across different economies and industries.
Unlisted Investments: 30% of the portfolio is invested in unlisted property, private equity and infrastructure assets to provide resilience and consistent returns during volatile times.
ESG Integration: By incorporating ESG into the portfolio HESTA gets strong financial outcomes and promotes environmental and social responsibility.
Projected growth for members by 2025
With a 7.6% historical return, a 100,000 AUD investment in Balanced Growth could grow to 107,600 AUD by 2025, actual returns may vary.
Risk Management in Balanced Growth
HESTA’s risk management practices keep investments resilient, navigating market volatility while staying with members’ long term goals and objectives.
Portfolio adjustments: HESTA regularly reviews and adjusts the portfolio in response to market conditions to stay with growth objectives and reduce risk.
Balanced mix: The combination of growth and defensive assets reduces volatility and provides stable long term returns for a diversified investment approach.
Proactive ESG oversight: ESG integration helps risk management by identifying environmental, social and governance risks, to protect both financial and ethical outcomes.
Is Balanced Growth for you?
Balanced Growth is for medium to long term retirement goals. A financial advisor can help you align it with your risk tolerance.
QSuper – Balanced
The QSuper Balanced option is a diversified strategy for moderate long term growth and risk management. It’s for those who want stability and balanced returns to secure their super.
Balanced performance
QSuper Balanced continues to deliver consistent performance, balancing risk and return to grow long term wealth for members.
Average return: Over the 10 years to June 2024, Balanced option returned 7.11%. This shows it can perform in volatile markets while being conservative.
2023-2024 financial year: In the 2023-2024 financial year, QSuper Balanced returned 7.0%. This demonstrates the fund’s ability to adapt to market volatility.
QSuper’s investment strategy foundation
QSuper Balanced works because of its diversified mix of growth and defensive assets. This approach balances security and potential future returns to meet the different needs of its members.
Growth assets (60%): A part of the portfolio is invested in growth assets like equities, property and private equity which are expected to deliver higher long term returns.
Defensive assets (40%): The other half of the portfolio is invested in defensive assets like fixed income and cash which provides stability and protection against economic downturns.
Diversification and risk management at the heart
QSuper’s diversified approach delivers stability and growth, adapting to changing economic conditions. This provides a solid base for long term financial security and risk management.
Global access: With a diversified portfolio across domestic and international markets, QSuper gives members access to global growth, reducing reliance on any one economy.
Unlisted investments: The portfolio includes significant exposure to unlisted assets like infrastructure and property which deliver stable long term returns and protect members from market volatility.
ESG integration: QSuper fully integrates ESG, aligning its investment strategy with ethical considerations and maximising returns for members.
Member growth by 2025
7.4% p.a. return. A 100,000 AUD investment in the Balanced option could grow to around 107,400 AUD by 2025. Actual returns depend on market and asset performance.
QSuper’s risk management
QSuper has a robust risk management framework to protect its members’ funds and maximise growth. The fund responds to market movements and keeps its portfolio dynamic and aligned to its members’ goals.
Regular portfolio reviews: QSuper reviews and adjusts the portfolio regularly to stay on top of economic trends and provide strategic asset allocation so members’ investments are aligned to their needs.
Balanced risk: A mix of growth and defensive assets means QSuper limits market volatility while maximising opportunities for big gains.
Strong ESG governance: QSuper applies strict ESG principles to manage environmental, social and governance risks and supports sustainable investing.
Is QSuper Balanced for you?
QSuper Balanced is for those who want steady growth with managed risk whether you’re nearing retirement or just starting out. It protects your wealth and secures your future with personal advice.
FAQs
What are the different superannuation investment options?
Superannuation funds offer various investment options like growth, balanced, conservative and cash. Each has a different risk level so members can choose based on their goals and risk appetite.
Growth options aim for higher returns but come with higher risk and volatility. Conservative options prioritise stability and deliver lower returns with less market movement so you get a safer outcome.
How do I choose the right investment option for me?
Choosing the right investment option involves considering your age, risk appetite, financial goals and retirement time frame. These factors will help determine the best approach for your super strategy.
Consult a financial advisor to get tailored advice and align your risk profile to the right investment strategies so you get long term growth and balance risk and reward for retirement.
What’s the difference between growth, balanced and conservative investment options?
Growth options focus on higher returns through equities and property investments and accept higher risk for potential gain. Suitable for members with higher risk tolerance and long term goals.
Balanced options combine growth and stability with assets spread across risk levels. Conservative options focus on bonds and cash with lower returns but lower risk for cautious investors.
Can I change my super investment options and how often?
Most super funds allow members to change investment options at any time. However some may limit changes annually or charge fees for frequent switching so it’s important to check the fund’s rules.
Review the fund’s rules so you can make informed decisions. Align your investment strategy to your goals and consider fees or limits to keep flexibility and optimise your super outcomes.
Are there fees to switch investment options?
Some super funds charge fees for changing investment options while others allow free switches. These fees vary so check your fund’s rules before you change.
Knowing the fund’s rules helps avoid surprises. Knowing the fees and limits means you can make informed decisions and align your investment choices to your goals and optimise long term outcomes.
How does my age affect my super investment options?
As you get older you should shift to a more conservative investment strategy to protect your savings. This reduces risk and gives stability and safeguards your funds for retirement later in life.
Younger members tend to opt for high growth, higher risk options to get higher returns over time while older members nearing retirement choose balanced or conservative options to get financial security and reduce market movement.
What is a lifecycle investment strategy in super?
A lifecycle investment strategy aligns your super portfolio to your age and retirement time frame. It starts with growth focused, higher risk investments to get higher returns during early working years.
As you get closer to retirement the strategy shifts to lower risk, stable options to protect your savings, get financial security and reduce market movement and preserve capital.
How do investment risks differ between super options?
Growth options have higher risk, focusing on equities, property and volatile assets for potential higher returns. Suitable for investors with long term horizon and higher risk tolerance.
Conservative options focus on stability, investing in safer assets like cash or bonds. They have less movement but lower returns, for cautious investors or those nearing retirement.
What happens to my super when the market moves?
Market movement affects the value of your super investments by changing asset prices. Growth investments can be very volatile in the short term while conservative options are more stable but still subject to economic changes.
Both growth and conservative options are affected by broader economic conditions. While conservative options are less volatile, all investments in your portfolio are still subject to market and economic movement.
Can I invest my super in ethical or socially responsible options?
Many super funds offer ethical or socially responsible investment options that focus on environmental, social and governance (ESG) factors. These options aim to get competitive returns while promoting sustainable, ethical practices.
These investments often support initiatives like reducing carbon emissions, fair trade and responsible business practices. They allow members to align their super with their values while getting long term growth.
How do I get information on my super fund’s investment performance?
Most super funds publish detailed information on investment performance on their website, annual reports or online portals. Members can get fund performance data, historical returns and portfolio breakdowns.
Some funds have financial advisers who can help interpret the performance data and provide personalized advice to ensure your investments are aligned to your goals and risk tolerance.
What is diversification in super?
Diversification spreads investment risk across different asset classes, sectors and geographies, reducing the impact of poor performance in one area. It aims to stabilise returns and grow.
By diversifying, superannuation funds balance risk and opportunity, so you get more stability. This approach gets you long term growth while minimising exposure to market movement or downturns in specific sectors or regions.
How are my super contributions split across different investment options?
When you make super contributions, you usually decide how to split them across different investment options. If no choice is made, the fund will apply its default investment option.
Some funds offer flexibility in contribution splitting, so you can personalise your portfolio based on your risk tolerance, goals and investment strategy. This can help get your investments optimised for long term growth.
What happens to my super if I don’t choose?
If you don’t choose an investment option, your super contributions will usually go into a default fund chosen by your provider, often a balanced or conservative option.
The allocation is usually determined by the fund’s standard policy and may change over time as the fund adapts to changing market conditions or evolves its strategy to suit different stages of your retirement planning.
How do super funds decide on their investment strategy?
Super funds develop their investment strategy through thorough market research, considering economic conditions, member demographics and long term goals. Fund managers review risk profiles, asset classes and trends to develop a tailored approach.
These strategies aim to meet member needs while getting the best returns. By responding to market and economic changes, funds aim to deliver consistent performance and long term growth in line with member’s retirement goals.
What are the tax implications of different super investment options?
Investment returns within super are taxed at a lower rate. Growth investments may generate capital gains which are subject to capital gains tax (CGT) while cash and bond interest is taxed as income.
Tax effective strategies vary by asset class and the super fund’s approach. Fund managers will optimise these strategies to minimise tax liabilities and ensure compliance with tax laws for super investments.
How do I measure my long term super performance?
To measure long term performance track your fund’s historical returns and compare to market indices. Evaluate your investments against the goals you set when you joined to make sure you’re on track.
Reviewing performance each year ensures your super is aligned to your retirement goals. It allows you to adjust your strategy if needed to stay on course for retirement security.
What’s the annual performance test for super funds?
The annual performance test measures super funds on returns and fees against other industry funds. This test helps consumers identify funds that meet or beat expectations for long term financial growth.
By comparing funds through this performance test, members can make informed decisions and choose options that get competitive returns with reasonable fees so their super keeps up with their long term financial goals.
How do fees and charges impact my super investment?
Fees and charges can reduce your super balance over time. Management fees, transaction fees and investment costs are deducted from your returns.
Choosing a fund with low fees is key to getting the most out of your super. Lower fees means more of your returns stay with you and more savings for retirement and better long term outcomes.
Where can I get advice on my super investments?
You can get advice from licensed financial advisors or super specialists. Many super funds offer free consultations to help you make informed decisions on investment options, super and retirement planning based on your goals.
Getting professional advice ensures your super is aligned to your financial situation, optimising your strategy to get the most out of retirement savings and taking into account your long term goals and personal preferences.
Originally Published: https://www.starinvestment.com.au/10-best-superannuation-investment-options-australia/
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