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Home / Super funds / Choosing an investment option

Choosing an investment option

Choosing an investment option in your super fund is an important decision, though it’s one that many Australians neglect. Around 80% of Australians with superannuation accounts have their money invested in the default option, which is where you’re placed if you don’t choose an investment option.

Default options are usually ‘balanced’ or ‘growth’ investments and normally have around 60-80% of their funds invested in growth assets such as shares and property. These options are designed as an appropriate investment strategy for a large number of members across the many years they will be saving for their retirement.

However, your fund’s default option may not be best for your particular circumstances and risk profile. It’s important to understand that different types of investments have different levels of risk. In general, the higher potential investment return, the higher the risk, and vice versa.

It’s important to regularly assess your investment option over time as your circumstances change and to make a switch if necessary. For example, you may want to choose a different investment option in retirement if you’re receiving a pension.

See also our section on SMSF investment.

Set out below are all SuperGuide articles that relate to Choosing an investment option.

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Fit cats and fat cats: Which are the best and worst super funds?

September 30, 2020 by Tracey Spicer Leave a Comment

Tracey Spicer talks to Chris Brycki from Stockspot about their annual Fat Cat Funds Report which assesses the best and worst performing super funds.

Video: Which investment option is right for you?

August 13, 2020 by Tracey Spicer Leave a Comment

In this video Tracey Spicer talks to Associate Professor Banita Bissoondoyal-Bheenick from RMIT about the importance of choosing the right investment option for you, not just through a pandemic, but for the long-term.

What is a growth asset? Time to set some standards

August 3, 2020 by Barbara Drury Leave a Comment

It’s been a long time coming, but a group of superannuation industry professionals is proposing a set of standards to categorise growth and defensive assets.

Balanced, Growth, Defensive: What’s in a name?

August 3, 2020 by Barbara Drury Leave a Comment

A rising chorus of superannuation industry professionals agree the current labelling of super investment options is past its use by date, but that’s where the agreement ends.

How to create an investment portfolio in retirement

March 13, 2020 by Barbara Drury Leave a Comment

Retirement involves a series of adjustments, to your lifestyle and spending patterns but also to the way you invest.

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Choosing a super investment option

February 15, 2020 by SuperGuide Leave a Comment

In this video interview Mano Mohankumar, Senior investment research manager at Chant West, shares some insights on how super funds performed in 2019, the outlook for 2020, and what to consider when choosing a super investment option.

Is it time to change your super investment option?

January 1, 2020 by Janine Mace Leave a Comment

If you believe your super fund is not performing as well as you had hoped, or as well as other super funds, what can you do? Here’s our 5-step guide to help you assess whether your super fund’s investment performance is staying with the pack – or lagging the field.

How to change your investment option: 6 points to check before you switch

January 1, 2020 by Janine Mace Leave a Comment

If you’re unhappy with how your super savings have grown, it’s worth considering whether you’re in the right investment option in your super fund. To help you work through the process of making an investment option switch, check out our simple explainer.

How the 10/30/60 Rule can help achieve your retirement plans

December 8, 2019 by Janine Mace 1 Comment

Research first undertaken in the United States nearly 30 years ago found around 90 cents of every one dollar in retirement income comes from the earnings you achieve on your super investments, with only 10 cents coming from your own savings.

Risk profiling and your investment choice

May 22, 2019 by Penny Pryor Leave a Comment

Investments exist on a risk spectrum. The higher the return, the higher the risk. So, your comfort with different levels of risk is crucial in determining what kind of assets you can, and should, invest in.

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How super works
Super for beginners
Super rules
Employers guide to super
Super contributions
Super and tax
Accessing super
Super news
Women and super
Super tips and strategies
How-to guides
Super quizzes
Superannuation Q&As
Superannuation glossary
Super funds
Best performing super funds
Super fund rankings
Best performing pension funds
Pension fund rankings
Super fund average returns
Super investing strategies
Comparing super funds
Choosing a super fund
Choosing an investment option
Super fund fees
Insurance and super
Super fund profiles
SMSFs
SMSFs for beginners
SMSF administration
SMSF checklists
SMSF compliance
SMSF investing
SMSF pensions
SMSF strategies
SMSF Q&As
Plan your retirement
Retirement planning for beginners
When should I retire?
How long will I live?
How much super do I need?
Will I get the Age Pension?
How much will I spend in retirement?
Financial advice
Retiring overseas
Preparing for retirement
Retirement planning strategies
Retirement calculators and reckoners
In retirement
Income in retirement
Super lump sums
Super pensions
Age Pension
Working in retirement
Life in retirement
Senior concessions and services
Aged care
Estate planning
Super death benefits
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