Superannuation is a long-term investment. Those starting in the workforce today at 18 will have 47 years of superannuation contributions and investment returns ahead of them if they retire at 65. We often hear about the super returns for the latest month, or the top performing funds for the last year, but when looking ... Read more
Choosing an investment option (Investment choice)
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 the SuperGuide section on SMSF investment.
To learn about the key aspects of choosing a super investment option, see the following SuperGuide articles:
Set out below are all SuperGuide articles that relate to Choosing an investment option (Investment choice).
Asset sector performance: Returns over 1 to 15 calendar years (to December 2019)
In this article you can discover the investment performance for 12 asset classes over various timeframes. For all asset classes there is data for 1, 3, 5, 7 and 10 calendar years, and for most asset classes there is also data over 15 calendar years. Note: A calendar year covers 1 January to 31 December, whereas a ... Read more
Super fund performance over 27 calendar years (to December 2019)
In this article you can find super fund performance for 1, 3, 5, 7, 10 and 15 years, up to the latest calendar year and across five different investment options. We’re grateful to Chant West for providing the statistics in this article.See also Super fund performance over 27 financial years (to June 2019) Super funds ... Read more
Monthly super fund performance Reckoner: Monthly returns for 5 investment categories
In the reckoner below you can view the median monthly investment returns for 5 superannuation investment options. We’re grateful to Chant West for providing the statistics that power the reckoner. See also: Super fund performance: Monthly returns ImportantSuperannuation is primarily a long-term investment. While the ... Read more
Best performing super funds over the last calendar year (to December 2019)
Super funds finished the 2019 calendar year with bang, with the median growth fund delivering a return of 14.7%. This was almost twice the median return of 7.9% over the past decade and a massive turnaround after the 4.6% fall in the December 2018 quarter. Last year was unusual in that all asset classes apart from cash ... Read more
Annual super fund performance Reckoner: Annual returns for 5 investment categories
In the reckoners below you can view the median super fund returns for 1, 3, 5, 7, 10 and 15 years across five different investment options. There are two reckoners - containing returns for the last 5 calendar years and 4 financial years respectively. We’re grateful to Chant West for providing the statistics in this ... Read more
Asset Sector Performance Reckoner
SuperGuide’s Asset Sector Performance reckoner allows you to compare the investment performance of various asset classes over the short, medium and long term. The reckoner covers 12 asset classes over 1, 3, 5, 7 and 10 years and, where available, also over 15 years. The maximum performance timeframe available for each ... Read more
How investing in infrastructure boosts your super account
Arguments about the need to invest more in Australia’s ageing infrastructure are pretty common these days, with the big pot of money held by super funds often seen as the solution. But the reality is super funds are already big investors in infrastructure assets and if you’re a member of a big super fund, chances are ... Read more
Which are the largest super funds?
Superannuation is now very much super-sized. At September 2019 there was $2.9 trillion invested in super, up 7.1% in just 12 months. That’s significantly more than the $1.9 trillion combined value of all the stocks on the ASX. And with 9.5% of everyone’s wages being added each year, Australia’s superannuation system is ... Read more
How to review your super fund
Is your super fund a star performer or a lemon? It’s a question more Australians are asking after the Productivity Commission and the Hayne Royal Commission highlighted widespread overcharging and underperformance across the superannuation system. It often starts with niggling doubts. Fees that are above the industry ... Read more
Do you know what your super fund is invested in?
With trillions of dollars tied up in Australia’s super funds, you’d think it would be pretty easy to find out where all that money is invested. But that’s not the case, with the investment assets of many super funds being far from transparent – both publicly and for fund members. It’s a situation the government has ... Read more
5-step guide to deciding if it’s time to change your investment option
Everyone asks themselves from time to time whether their super fund is performing and what its current performance means for their retirement plans. 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 SuperGuide’s 5-step guide to help you ... Read more
3 questions to ask when choosing a responsible investment option
Although you might want your super fund to produce a good investment return every year, many fund members also want their money invested responsibly and in line with their personal values. If you feel uncomfortable with your retirement savings supporting activities like fossil fuel mining, development of armaments or ... Read more
What are the buy/sell spreads charged by my super fund?
Mention a buy/sell spread and even the most interested super fund member will look confused, as these spreads are one of the least understood costs of being a fund member. But buy/sell spread fees are something we’re all likely to see a lot more of thanks to ASIC’s new disclosure rules for annual fund member ... Read more
How to change your investment option: 6 points to check before you switch
Opening the annual member statement from your super fund can be a source of disappointment for some people. If you’re unhappy with how your super savings have grown, it might even have you considering switching super funds. But before taking a drastic step like that, it’s worth considering whether or not you’re in the ... Read more