Types of investments for superannuation
One of the biggest misconceptions about super is that it is an investment. It’s not. Super is a legal structure – a type of trust – to hold your investments.
The asset classes your super fund can invest in are, in the main, the same as you can hold outside super in your own name or another investment vehicle such as a family trust.
The main asset classes super funds can invest in are shares, property, cash, bonds and other fixed interest investments, private equity, infrastructure and other so-called alternative investments.
If you are a member of an industry, retail, corporate or public sector fund, your money is pooled with other investors so you don’t have individual ownership of the assets in the fund. However, many large funds these days allow you to invest direct in shares, exchange-traded funds and term deposits.
The only way you can hold a direct investment in real property (such as an investment property or business premises) inside your super fund is to set up your own self-managed fund (SMSF). SMSFs may also be able to invest in collectibles such as art, wine, stamps and classic cars.
Click on the SuperGuide links below for more detailed information on the main types of investments for superannuation:
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